What can we learn from history?

This paper develops and empirically tests a theoretical framework that identifies new venture strategies that are robust to a severe change in environmental conditions. Specifically, it develops a typology of strategic options among new ventures in the context of an emerging industry that experiences an Entrepreneurial Boom and Bust (EBB) Period. An analysis of the performance drivers of 85 investment management firms from 1927 through December 1931 suggests that initial endowments shape a firm strategy during the expansion of the EBB, and both predict firm survival at the end of the EBB period. We find that firms followed three archetypes of strategy Ư Conservative Growers, Focused Investors, and Expansionist. They started from different resources bases. Conservative Growers were differentially able to withstand the contraction period.