Department of Computational Social Science Seminar Abstract

Friday, April 27 - 3:00 p.m.
Center for Social Complexity Suite
3rd Floor, Research Hall

Constructive Failure in High-Impact Entrepreneurship: An Agent-Based Model of Company Growth Based on Team Formation and Individual Skills

Anamaria Berea
CSS PhD Candidate
George Mason University

Evidence shows that only a small number of entrepreneurial endeavors - high-impact companies - create most of the new employment in the US. This research is looking for the causes of emergence and a computational formalization of these companies. The agent-based simulation shows how a company grows in employment and revenue based on two layers of organization: 1) the heterogeneous team formation and interaction at the mezzo level of a company organization and 2) the heterogeneous employees skills and interaction at the individual level of a company organization. The model advances and tests the hypothesis that companies that learn the fastest from failed projects while retaining access to capital are more likely to become high-impact companies. The experiments replicate the high-impact rate given by the real data and show that the high-impact phase of a company growth is achieved for specific learning parameters and revenue loss, regardless of the company age, industry or geographic location.