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

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, sma...

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Bibliographic Details
Published inEntrepreneurship theory and practice Vol. 43; no. 5; pp. 999 - 1017
Main Authors Friske, Wesley M., Zachary, Miles A.
Format Journal Article
LanguageEnglish
Published Los Angeles, CA SAGE Publications 01.09.2019
SAGE PUBLICATIONS, INC
Subjects
Brewing industry
Corporate taxes
Excise taxes
Policy making
Regulation
Sales
Sales taxes
Small business
Social costs
Tax credits
Taxation
Ventures
United States > US
growth
regulation
Resource-Advantage theory
government policy
new ventures
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Summary: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.
ISSN:1042-2587
1540-6520
DOI:10.1177/1042258718760840