Many credit the development of the USA with the provision of an excellent environment for new business growth.
Estimates range from half a million or more new business starts in the USA annually.
Yet a majority of ventures fail each decade. To promote social welfare, then, it is important to study the process of venture creation and development. This essay develops a comprehensive theory of venture performance and applies these ideas to focus on the optimal management and investment philosophy. A plethora of recent literature focuses on understanding the ingredients that contribute to superior venture performance. The most exciting of these research approaches uses a contingency theory of new venture success which recognizes the importance of industry structure and venture strategy.