Title

Regulation, New Venture Creation, and Resource-Advantage Theory: An Analysis of the U.S. Brewing Industry

Abstract

Regulation is an important means by which policymakers address social costs. However, recent research suggests that managing social costs often comes at the expense of entrepreneurial activity. We explore this duality by extending resource-advantage theory to examine the effects of excise taxes, small business tax credits and exemptions, and sales restrictions on rates of new venture creation in the U.S. brewing industry. Our longitudinal analysis of state-level brewery regulations reveals that taxes and sales restrictions have adverse but limited effects on new venture creation over time. Furthermore, tax credits and exemptions are positively associated with growth rates of new ventures.

Department(s)

Marketing

Document Type

Article

DOI

https://doi.org/10.1177/1042258718760840

Rights Information

© 2019 The Author(s).

Keywords

government policy, growth, new ventures, regulation, Resource-Advantage theory

Publication Date

9-1-2019

Journal Title

Entrepreneurship: Theory and Practice

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