Statistical Methodology on the Decision Making for the Start-up Business: Three Modeling Analysis for the Entrepreneurship Studies

Within the context of Maddala’s schema, the goals of this study are described firstly as to estimate potential model for two-step decision making process with respect to the start-up business using econometric modeling. Secondly, to show the adequacy of model for predictions and public policy. It discusses three potential econometric models for the decisions on the starting-up business. For the purpose of sophisticated estimation for the potential market comes from new start-up business. At least one of the illustrated models will be used properly. Although we have abundant and rich esearches and studies that concerned with start-up decisions as well as investment cost and expenditures from the view point of a new entrepreneur. but, there aren’t enough econometric and statistical papers regarding such topics in domestic fields. Therefore, the suggested statistical model for the two-step decision whether opening new business or not and the total amounts for the investment would be usefully applied for our entrepreneurship researches.