Is Speedy Start-up Always Better? The role of entrepreneurs’ prior experience

Recent start-up policies and programs increasingly emphasize accelerating the entrepreneurial process, yet the effectiveness of such rapid progress remains unclear. This study investigates the relationship between the duration of nascent entrepreneurial activity and start-up size. Using a rich dataset of new firms in Japan, we examine how the duration of preparation time relates to start-up size. Drawing on the resource-based view in combination with the concept of time compression diseconomies, we argue that the need to accumulate resources in the nascent phase of entrepreneurship depends on entrepreneurs’ prior management and industry work experience. The results reveal that longer preparation increases start-up size for entrepreneurs without prior experience, whereas its marginal returns diminish for those with such experience. These findings imply that the advantages of speed primarily apply to those who possess sufficient initial resources. Consequently, policies should avoid one-size-fits-all acceleration and instead be tailored to the individual entrepreneur’s background.