This paper aims to identify how entrepreneurial responses to ‘barriers’ can give rise to
opportunities for new firms. The poor predictive record of studies analysing success attributes
and favourable initial factors as determinants of new firm growth reflects the diversity of
entrepreneurial responses to problems of growth, as illustrated by three case studies of new
companies which were able to overcome adverse initial conditions despite the lack of early
‘success attributes’. They did so by finding alternative opportunities and by achieving resource
economy, resource leverage and resource creation, aided by strategic relationships formed with
other players. Spurred by the problems they encounter, entrepreneurial firms revise their
business conjecture and engage in innovative activities, their business model evolving through
trial and error. Creative responses to unexpected developments by entrepreneurial decision
makers have implications for research methodology and business support