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Project status: In progress
Focused on tracking new businesses from their beginnings, CAUSEE is undertaking the largest study of business start-ups in Australia.
The Comprehensive Australian Study of Entrepreneurial Emergence research project, or CAUSEE, is Australia's largest research project on business start-ups and the development of young firms. The project provides an exciting opportunity to fundamentally improve our understanding of independent entrepreneurship in Australia.
CAUSEE follows a large, random sample of approximately 600 emerging (but not yet operating when first contacted) business start-ups and another random sample of approximately 600 newly established young firms (which had commenced trading). In addition, over-samples of approximately 100 'high-potential', high-growth firms complement the study. The four annual waves of data collection were completed in 2007/8 - 2010/11. In addition, a follow-up was conducted in 2013 to get updated outcome information on as many firms as possible.
The project has yielded:
Increased output will emerge in the coming years.
Australian Research Council (ARC)
National Australia Bank
Supported by the Talbot Family Foundation.
CAUSEE aims to uncover the factors that initiate, hinder and facilitate the process of emergence of new economic activities and organisations. Unlike previous entrepreneurship research, the CAUSEE project does not put a singular focus on the 'entrepreneur(s)' but pays balanced attention to all the factors depicted in the above figure. The detailed CAUSEE Questionnaires show exactly what questions have been asked.
Regarding "Individuals" we examine solo vs team start-ups; the education and experience of the founders, and what other resources they bring to the start-up. The Venture Idea is examined in terms of its level and type of novelty and how it relates to the prior experience and resources of the founders. We also examine how much the Venture Idea changes in the process, and why. The Process is also examined in terms of what activities are undertaken - with what intensity and in which sequence - to get the business up and running. As regards Environment we look into the industry and the region in which the firm is located. We look at a range of objective and subjective outcomes, from sales and profitability to the founders satisfaction with what they have achieved.
The CAUSEE project is making top quality contributions to the international research frontier, but it also yields highly relevant results for policy-makers and business founders.
The CAUSEE project is run from the Queensland University of Technology and is designed and conducted by a team that includes some of the most highly qualified researchers in the world for conducting this type of research.
Chief Investigators are Professor Per Davidsson and Associate Professor Paul Steffens.
Per Davidsson is one of the most highly recognised entrepreneurship scholars internationally. His involvement in earlier and concurrent projects of the same kind in the US and Sweden makes him a leading expert in this type of longitudinal, start-up research. His credentials also include being a leading figure in the largest and most influential entrepreneurship policy research project in Sweden in the 1990s; receiving an honorary doctorate from Leuphana University in Germany, and chairing the 3,000 member strong Entrepreneurship Division of the (US-based) Academy of Management.
Paul Steffens has expertise in the areas of innovation and technology commercialisation and also brings important methods expertise and knowledge of the Australian context to the CAUSEE leadership.
International Partner Investigators include Professor Paul D. Reynolds, Florida International University, Associate Professor Ted Baker, North Carolina State University and Associate Professor Saras Sarasvathy, University of Virginia, as well as Siri Terjesen and Jason Fitzsimmons, who were at QUT at the start of the project. Paul Reynolds, effectively the creator of both the Global Entrepreneurship Monitor (GEM) and CAUSEE's international predecessors, is arguably the most influential researcher in entrepreneurship policy and the world's leading authority for this type of research. He was also the 2004 recipient of the International Award for Entrepreneurship and Small Business Research; arguably the highest honour achievable in this line of research. Saras Sarasvathy is a disciple of Nobel Prize Laureate Herbert Simon and the originator of 'Effectuation Theory', which is one of the most interesting and discussed theoretical developments in entrepreneurship research in the last decade, and will be tested through CAUSEE.
Apart from the Chief and Partner Investigators, CAUSEE engages research students, post doctoral fellows, other QUT faculty members and ad hoc external co-authors on individual manuscripts.
CAUSEE stands for Comprehensive Australian Study of Entrepreneurial Emergence. It is a large-scale, high quality research study following the development of two categories of start-ups over time: a) those who are currently trying create a new business or move into self-employment and b) young firms, who are independent businesses which started in 2004 or later (followed in the research from 2007/8).
Previous research shows that new business start ups are important sources of innovations, jobs and economic growth. We want to understand what works, and what doesn't work for new businesses in the Australian context. No one knows very much about how Australians go about developing new businesses, the resources they use, such as people, knowledge and money, how this varies across industries and how all this impacts the success (or otherwise) of the business. This information will help entrepreneurs make better decisions; educators and support organizations develop better advice and assistance, and Governments design better conditions for the creation of new businesses.
CAUSEE received its main funding from two grants from the Australian Research Council (ARC). The ARC is the Australian Government's main body for research funding. The grants of $455,000 and $262,000 are among the biggest given to business research and indicate that the ARC agree new businesses and knowledge about their development are important, and also that they have great confidence in the team of researchers behind the project. CAUSEE also has some funding ($180,000) from industry sponsors BDO-Kendalls and National Australia Bank. The Department of Industry funded the 2013 follow-up interviews about longer-term outcomes. These organisations sponsor this research because they, too, believe new businesses are important and that we need to learn more about what facilitates their development. The sponsors do not influence the contents of the surveys and do not get access to data or privileged access to results.
The data is used solely for the purpose of academic research. Only a small team of academic researchers affiliated with QUT have access to the data, and even they perform their analyses on data sets that do not fully identify individual businesses. Results are published only in the form of averages across all participants or for broad categories of businesses; for example industries or size classes. In academic tradition such overall results will be made as openly available as possible - there will be no privileged access to results for any particular interested parties.
The majority of respondents were called randomly. CAUSEE used random digit dialing, which is an established procedure for getting in touch with a representative sample of Australian households. More than 30,000 households were contacted to find the 1,200 people involved in emerging or young businesses at that time.
Other respondents were specifically targeted as high potential start-ups. These were identified by screening a large number of individuals and organisations that are likely to be in contact with such start-ups at an early stage (e.g., patent attorneys; business angels; business incubators; research units).
Businesses are started in many different ways, and many different factors contribute to the success or failure of business start-ups and young businesses. This requires relatively rich information about each case. The interviews comprise questions in the following general areas:
Classifying the business: What type of business is it in terms of industry, ownership, etc.
Activities and milestones: What activities have been undertaken in order to develop this business, and when? How do the founders go about doing certain things for this business?
The business idea or 'business model'. What is new about this business compared to existing businesses? How is the business' activities linked to the owner's prior experience and education? What changes have been made to the business idea so far, and why?
Resources. What resources in terms of time, effort and money, etc. have been invested? What sources of finances and advice have been used? What resource advantages or disadvantages does the business have compared with other businesses?
Results, goals and future expectations. What has been achieved so far, and what are the expectations for the short and long term future?
View the detailed CAUSEE Questionnaires
CAUSEE has received a four-year grant totaling $455,000 from the Australian Research Council (ARC) and a further $262,746 from an ARC linkage grant. Although these are very sizable grants, additional funds are needed and currently sought in order to realize the full potential of the CAUSEE project.
QUT and the CAUSEE research team gratefully acknowledges the support of the Australian Research Council, and industry partners, professional services firm BDO, and the National Australia Bank (NAB).
Publications, news, events and resources from the Australian Centre for Entrepreneurship Research
In this chapter, the picture of Australian small business is supplemented by using data from the Comprehensive Australian Study of Entrepreneurial Emergence (CAUSEE). This data tracks large numbers of ongoing business start-ups over time. The Australian Centre of Entrepreneurship Research at Queensland University of Technology collected data in four annual waves. (Wave 1 to Wave 4) from 2007 to 2011. CAUSEE allows the analysis of entrepreneurial entrants at two stages of development, i.e. nascent and young firms. Nascent firms are defined as firms in the process of being created, but not yet established in the market, and young firms are defined as having been operational for up to four years. An analysis of nascent firms provides unique insights, as no other known Australian database captures and follows the development of business start-ups at the pre-operational stage. In addition, the project captured judgment over samples of high-potential start-ups. View chapter in eprints. View full Australian Small Business Key Statistics and Analysis report.
The Comprehensive Australian Study of Entrepreneurial Emergence (CAUSEE) is the largest study of new firm formation that has ever been undertaken in Australia. CAUSEE follows the development of several samples of new and emerging firms over time. In this report we focus on the drivers of outcomes - in terms of reaching an operational stage vs. terminating the effort - of 493 randomly selected nascent firms whose founders have been comprehensively interviewed on two occasions, 12 months apart. We investigate the outcome effects of three groups of variables: Characteristics of the Venture; Resources Used in the Start-Up Process and Characteristics of the Start-Up Process Itself. View full report in eprints.
Early observations released May 2008 indicate Australia's start-up companies are going into business with their entrepreneurial eyes wide open and a technological and growth outlook that is at least on par with, if not better than, their US counterparts. View full report in eprints.
While women are making their mark in everyday Australia business, they are still under-represented in "high potential" firms, an entrepreneurial study undertaken at Queensland University of Technology has revealed. View full report in eprints
Comprehensive Australian Study of Entrepreneurial Emergence (CAUSEE): Project Presentation and Early Results
Comprehensive Australian Study of Entrepreneurial Emergence (CAUSEE): design, data collection and descriptive results
PSED II and the comprehensive Australian study of entrepreneurial emergence (CAUSEE)
Why, how, what for?: motivations, actions and expectations in habitual entrepreneurship
Linking resource acquisition and development processes to resource-based advantage: bricolage and the resource-based view
Entrepreneurial bricolage: towards systematic empirical testing
Effectuation and newness: an intertwined relationship?
Novice vs habitual entrepreneurship: differences in motivations, actions and expectations
Operationalising the resource based view for nascent and young firms: developing scales for resource advantages and disadvantages
Introduction to Australian Study of Entrepreneurship Emergence (CAUSEE)
Operationalising the resource based view for nascent and young firms: development of a scale for resource advantage and disadvantages
Understanding venture idea newness, relatedness and change among nascent and young entrepreneurs
These are a selection of key results to date from the CAUSEE project. For all publications see e-prints.
We're looking for researchers to join this project.
We're looking for students to join this project.
If you're from a high potential, high growth business start-up, we'd like to talk to you.
We're seeking additional funds to realise the full potential of the CAUSEE project.