Should Government be Stimulating Start-ups? An Assessment of the Scope for Public Intervention in New Venture Formation

10.1068/c0436 ◽  
2006 ◽  
Vol 24 (1) ◽  
pp. 21-36 ◽  
Author(s):  
Andrew Atherton
Keyword(s):  
New Venture ◽  
Public Intervention ◽  
New Venture Formation ◽  
Start Ups

scholarly journals The survival of business takeovers and new venture start-ups

2020 ◽  
Vol 29 (3) ◽  
pp. 797-826
Author(s):  
Guoqian Xi ◽  
Jörn Block ◽  
Frank Lasch ◽  
Frank Robert ◽  
Roy Thurik
Keyword(s):  
Life Cycle ◽  
Survival Rate ◽  
Firm Survival ◽  
Organizational Ecology ◽  
New Venture ◽  
Firm Characteristics ◽  
Entry Modes ◽  
Survival Patterns ◽  
Start Ups ◽  
The Relationship

Abstract Business takeovers and new venture start-ups are two important and distinct entry modes of entrepreneurship. They differ from resource-based and organizational ecology perspectives. We compare firm survival patterns and determinants associated with the two entry modes. From two large French datasets, we find that business takeovers have a higher survival rate than new venture start-ups. However, these differences in survival probability reduce over the entrepreneurship life cycle and when controlling for different entrepreneur and firm characteristics. Moreover, we identify differences in determinants of survival for the two groups, highlighting a distinction between the two entrepreneurship entry modes. This work contributes to the literature on the relationship between entrepreneurship entry and firm survival, thereby contributing to both entrepreneurship and firm survival research.

Immigrant Entrepreneurship: The Effect of Early Career Immigration Constraints on New Venture Formation

2021 ◽  
Author(s):  
Rajshree Agarwal ◽  
Martin Ganco ◽  
Joseph Raffiee
Keyword(s):  
United States ◽  
Human Capital ◽  
The United States ◽  
Early Career ◽  
Theory And Practice ◽  
New Venture ◽  
Opportunity Costs ◽  
Paid Employment ◽  
Specialized Human Capital ◽  
New Venture Formation

We examine how institutional factors may affect microlevel career decisions by individuals to create new firms by impacting their ability to exercise entrepreneurial preferences, their accumulation of human capital, and the opportunity costs associated with new venture formation. We focus on an important institutional factor—immigration-related work constraints—given that technologically intensive firms in the United States not only draw upon immigrants as knowledge workers but also because such firms are disproportionately founded by immigrants. We examine the implications of these constraints using the National Science Foundation’s Scientists and Engineers Statistical Data System, which tracks the careers of science and engineering graduates from U.S. universities. Relative to natives, we theorize and show that immigration-related work constraints in the United States suppress entrepreneurship as an early career choice of immigrants by restricting labor market options to paid employment jobs in organizational contexts tightly matched with the immigrant’s educational training (job-education match). Work experience in paid employment job-education match is associated with the accumulation of specialized human capital and increased opportunity costs associated with new venture formation. Consistent with immigration-related work constraints inhibiting individuals with entrepreneurial preferences from engaging in entrepreneurship, we show that when the immigration-related work constraints are released, immigrants in job-education match are more likely than comparable natives to found incorporated employer firms. Incorporated employer firms can both leverage specialized human capital and provide the expected returns needed to justify the increased opportunity costs associated with entrepreneurial entry. We discuss our study’s contributions to theory and practice.

Collaboration Inside the Firm

2019 ◽  
pp. 680-704
Author(s):  
Elena Kulchina
Keyword(s):  
Empirical Studies ◽  
Early Years ◽  
New Venture ◽  
Managerial Control ◽  
Collaborative Process ◽  
Start Ups

Founding and operating a firm is a collaborative process, but still little is known about the nature of collaboration between entrepreneurs and other members of the new-venture team, particularly key employees. For example, traditional entrepreneurship literature believed that founders always run their start-ups personally, at least in the early years of operation. However, recent empirical studies suggest that a significant share of founders hire CEOs for their start-ups at the time of founding or soon thereafter. This chapter explores what motivates founders to delegate managerial control to a hired agent, how founders choose their managers, and how they govern relationships with their CEOs.

scholarly journals Confucian Values and Entrepreneurial Firm Legitimacy

2019 ◽  
Vol 11 (2) ◽  
pp. 18
Author(s):  
Kong-Hee Kim ◽  
James A. Tan
Keyword(s):  
The United States ◽  
New Venture ◽  
Entrepreneurial Firms ◽  
Asian Countries ◽  
Theoretical Understanding ◽  
Social Legitimacy ◽  
Entrepreneurial Firm ◽  
The Social ◽  
Confucian Values ◽  
New Venture Formation

This paper offers a model based on institutional theory to explain differences in the level of new venture formation and development between the Confucian-based societies of East-Asia and Western countries such as the United States. We propose that the Confucian values underlying the institutional and cultural environments of East-Asian countries adversely affect the social legitimacy of entrepreneurial firms thereby inhibiting new venture formation and growth. The theoretical model and propositions developed in this paper extend the theoretical understanding of the interplay between Confucian values, cognitive behavior, and entrepreneurial firm legitimacy. Implications for international entrepreneurship research are discussed.

The Determinants of New Venture Performance: An Extended Model

1998 ◽  
Vol 23 (1) ◽  
pp. 5-29 ◽  
Author(s):  
James J. Chrisman ◽  
Alan Bauerschmidt ◽  
Charles W. Hofer
Keyword(s):  
Strategic Management ◽  
Organizational Structure ◽  
Industry Structure ◽  
New Venture ◽  
Management Theory ◽  
Extended Model ◽  
Venture Performance ◽  
New Venture Formation ◽  
Special Case ◽  
New Venture Performance

This article argues that new venture formation is a special case of strategic management theory. Thus, Sandberg & Hofer's (1987) model of new venture performance, which states that new venture performance is a function of industry structure, venture strategy, and the founding entrepreneur, must be extended to include the resources and the organizational structure, processes, and systems developed by the venture to implement its strategy and achieve its objectives. The key assumptions underlying this model are presented, and specific propositions concerning how resources and organizational structure, processes, and systems affect new venture performance are developed.

New venture start‐ups and technological innovation

2012 ◽  
Vol 8 (1) ◽  
pp. 4-35 ◽  
Author(s):  
George W. Blazenko ◽  
Andrey D. Pavlov ◽  
Freda Eddy‐Sumeke
Keyword(s):  
Technological Innovation ◽  
New Venture ◽  
Start Ups

scholarly journals Teams in new ventures: gender, human capital and motivation

2020 ◽  
Vol 12 (2) ◽  
pp. 145-171 ◽  
Author(s):  
Roy Cerqueti ◽  
Caterina Lucarelli ◽  
Nicoletta Marinelli ◽  
Alessandra Micozzi
Keyword(s):  
Human Capital ◽  
New Ventures ◽  
Panel Study ◽  
New Venture ◽  
Nascent Entrepreneurs ◽  
Content Type ◽  
Team Members ◽  
Business Creation ◽  
Personal Motivation ◽  
Start Ups

Purpose This paper aims to dismantle the idea that sex per se explains entrepreneurial outcomes and demonstrates the influence of a gendered motivation on forging and shaping new venture teams, which is a disruptive choice affecting the future of start-ups. Design/methodology/approach A two-level research model is validated on data from the Panel Study of Entrepreneurial Dynamics II (PSED II), with a system of simultaneous equations. First, if team features affect the performance of new ventures is tested; then, the study investigates determinants of team features with a focus on sex and motivation of nascent entrepreneurs. Findings Human capital (HC) in terms of education and experience of team members consistently explains venture evolution only when considering the larger team of affiliates. The HC gathered by nascent entrepreneurs is not because of the simplistic sex condition, but rather to a gendered motivation related to the inferior need of achievement of women. Research limitations/implications Limitations of discretionary scoring assigned to items of the PSED II survey are present, but unavoidable when processing qualitative data. Practical implications Women need to be (culturally) educated on how to re-balance their personal motivation towards entrepreneurship by fostering their incentives for achievement. Political and educational programmes could trigger success in the creation of new businesses led by women. Originality/value This paper contributes to the literature on nascent entrepreneurship, focusing on the entrepreneurial teams in the initial phase of business creation, and provides the basis for further studies aimed at eradicating the stereotypes of gender roles that lead women to self-exclusion and organizational errors.

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