scholarly journals Platforms' partner networks: the missing link in crowdfunding performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stefano Cosma ◽  
Alessandro Giovanni Grasso ◽  
Francesco Pattarin ◽  
Alessia Pedrazzoli
Keyword(s):  
Early Stage ◽  
New Ventures ◽  
Content Type ◽  
Strategic Resources ◽  
Equity Crowdfunding ◽  
Strategic Value ◽  
Value Propositions ◽  
Linear Regressions ◽  
Sizable Number

PurposeA network of partners helps and assists a crowdfunding platform (CFP) in scouting, assessing and selecting projects. This cooperation increases the number of successful projects by attracting a sizable number of investors, proponents and attracting marginal investors when a campaign falls short of the threshold for success. This study examines the role of partner networks in a platform ecosystem, specifically in terms of number of different partners and their diversity in the performance of the crowdfunding campaign.Design/methodology/approachUsing logistic and linear regressions, we analyze a sample of 233 projects, both funded and not funded, launched by 10 Italian equity CFPs between 2014 and 2018.FindingsOur findings indicate that the variety of partners in a platform's network influence the probability of campaign success and how much capital the proponent company raises. CFPs are resource-constrained new ventures, and a network with a wider variety of partners ensures the strategic resources and competencies that are required in an early stage market, thus facilitating campaign funding.Practical implicationsThe variety of partner networks could help CFPs to offer unique and strategic value propositions and define the competitive positioning of platforms.Originality/valueThis study provides a deeper understanding of the determinants of equity crowdfunding campaign performance by emphasizing the role of CFP's network of partners on the entire crowdfunding ecosystem and its underlying organizational elements.

Gender difference in equity crowdfunding: an exploratory analysis

2018 ◽  
Vol 10 (4) ◽  
pp. 332-343 ◽  
Author(s):  
Ross Malaga ◽  
Stanislav Mamonov ◽  
Janet Rosenblum
Keyword(s):  
Small Businesses ◽  
Design Methodology ◽  
New Ventures ◽  
Exploratory Analysis ◽  
Data Set ◽  
Content Type ◽  
Limited Impact ◽  
Equity Crowdfunding ◽  
The Usa

Purpose Title II of the Jumpstart Our Business Startups Act aims to make it easier for new ventures to raise funds from accredited investors via equity crowdfunding. The purpose of this paper is to understand whether Title II equity crowdfunding represents an opportunity for women-owned companies (those that have one or more female owners/founders) to raise capital at rates similar to companies owned by men. Design/methodology/approach The authors conduct an exploratory analysis using a data set containing 6,234 Title II equity crowdfunded offerings aggregated across 17 crowdfunding platforms between September 2013 and December 2015. Findings The authors find that women-owned companies constitute only 15.2 per cent of the ventures seeking funding in this data set; however, gender had no effect on the likelihood of successful fundraising under Title II. Originality/value This study is the first to examine the roll of gender on the success of equity crowdfunding campaigns the USA. It provides empirical evidence that crowdfunding has had limited impact on democratizing access to capital for woman-owned startups and small businesses. The data reveal that woman-owned companies are underrepresented in Title II equity crowdfunding to an even greater extent than they are underrepresented in angel and venture capital (VC) investments. The results of this study also highlight the importance of examining the role of gender in equity crowdfunding across different countries.

Antecedents of growth-oriented entrepreneurship before and during the Greek economic crisis

2017 ◽  
Vol 24 (3) ◽  
pp. 528-544 ◽  
Author(s):  
Ioannis Giotopoulos ◽  
Alexandra Kontolaimou ◽  
Aggelos Tsakanikas
Keyword(s):  
Work Experience ◽  
Early Stage ◽  
New Ventures ◽  
High Growth ◽  
Content Type ◽  
Crisis Period ◽  
Individual Level ◽  
Level Data ◽  
The Social ◽  
Before And After

Purpose The purpose of this paper is to explore potential drivers of high-growth intentions of early-stage entrepreneurs in Greece before and after the onset of the financial crisis of 2008. Design/methodology/approach To this end, the authors use individual-level data retrieved from Global Entrepreneurship Monitor annual surveys (2003-2015). Findings The results show that high-growth intentions of Greek entrepreneurs are driven by different factors in the crisis compared to the non-crisis period. Male entrepreneurs and entrepreneurs with significant work experience seem to be more likely to be engaged in growth-oriented new ventures during the crisis period. The same appears to hold for entrepreneurs who are motivated by an opportunity and also perceive future business opportunities in adverse economic conditions. On the other hand, the educational level and the social contacts of founders with other entrepreneurs are found to drive ambitious Greek entrepreneurship in the years before the crisis, while they were insignificant after the crisis outbreak. Originality/value Based on the concept of ambitious entrepreneurship, this study contributes to the literature by investigating the determinants of entrepreneurial high-growth expectations in the Greek context emphasizing the crisis period in comparison to the pre-crisis years.

Early stage network engagement strategies in the network capability development of new ventures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helen McGrath ◽  
Thomas O'Toole
Keyword(s):  
Social Network ◽  
Business Strategy ◽  
Early Stage ◽  
New Ventures ◽  
New Venture ◽  
Capability Development ◽  
Content Type ◽  
Study Approach ◽  
Engagement Strategies ◽  
Network Capability

Purpose The purpose of this paper is to identify the early stage network engagement strategies that new ventures use to gain traction in interaction in the development of network capability. Design/methodology/approach Using 24 new ventures in the micro-brewing industry in Ireland, Belgium and the USA as an empirical base, the authors use an inductive case study approach owing to the exploratory nature of the research aim and the lack of prior literature in the area. Findings The findings suggest five early stage network engagement process strategies in network capability development: business-to-business network prospecting; co-branding/co-promoting activities; from maker-mindset to adapting; social media platforming; and recognition and activation of network role. Research limitations/implications The findings are limited to the micro-brewery sector at one point in time, although in multiple country contexts. Analyzing other sectors and taking a temporal view of strategizing, analyzing the sector at another time point, would show how dynamics in engagement change as the actors acquire new experiences from interaction. Practical implications The potential to gain from network resources and the paucity of these resources in new ventures makes early stage engagement strategizing for network capability development an attractive business strategy for new firms. All firms are born within a social network that has economic importance. Identifying the five early stage network engagement strategies can mitigate the challenge for the new venture in moving from the initial social network to collaborating within wider business networks to gain access to resources, technology and customers. Originality/value Strategizing in new venture contexts is a relatively new stream of research for the industrial marketing and purchasing group. This paper adds to the growing body of literature that places interaction, relationships and networks at the heart of strategy making and provides important insights for new ventures, which may lead to earlier and greater success for the firms. The authors respond to calls for increased research addressing capability development in a new venture context and for research to take a more interactive perspective on new venture processes.

Innovation affecting growth aspirations of early stage entrepreneurs: culture and economic freedom matter

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mehrzad Saeedikiya ◽  
Jizhen Li ◽  
Shayegheh Ashourizadeh ◽  
Serdar Temiz
Keyword(s):  
Hierarchical Linear Modeling ◽  
Design Methodology ◽  
Economic Freedom ◽  
Early Stage ◽  
Linear Modeling ◽  
Global Entrepreneurship Monitor ◽  
Content Type ◽  
Entrepreneurial Growth ◽  
Positive Effect

Purpose Earlier research confirms the positive effect of innovation in shaping growth ambitions of entrepreneurs. The aim of this paper is to investigate whether the effect of innovation on growth ambitions of entrepreneurs is contingent on the role of institutions, namely, culture and economic freedom. In other words, the authors’ objective is to provide an institutionally contingent understanding of the role of innovation in shaping growth ambitions of early-stage entrepreneurs. Design/methodology/approach The authors applied hierarchical linear modeling technique on the data of 100,566 early-stage entrepreneurs in 109 countries that participated in annual surveys of Global Entrepreneurship Monitor. Findings The authors find that the effect of innovation on shaping growth ambitions of early stage entrepreneurs is contingent on the role of culture such that, in secular cultures, innovation benefits growth ambitions more than traditional cultures. Further, the authors found that the effect of innovation on growth expectations is dependent on the level of economic freedom in the country in which the firms operate so that in the countries with higher level of economic freedom, early-stage entrepreneurs expect more growth out of their innovation as compared to their counterparts in the depressed economies. Originality/value The results contribute to our understanding of entrepreneurial growth aspirations as a result of the interplay of entrepreneur–firm–environment nexus.

scholarly journals The early growth of start-ups: innovation matters. Evidence from Italy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raffaele Fiorentino ◽  
Sergio Longobardi ◽  
Alessandro Scaletti
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Firm Growth ◽  
Ad Hoc ◽  
Early Stage ◽  
New Ventures ◽  
Objective Measure ◽  
Content Type ◽  
Start Up ◽  
Start Ups

PurposeDespite the relevance of innovation in entrepreneurship literature, empirical research on the innovation-performance relationship in start-ups is underdeveloped and shows controversial results. To bridge this gap, the aim of this paper is to investigate the role of innovativeness on new venture performance in the early stage of the life cycle.Design/methodology/approachRegression modelling and propensity score matching are used to reveal systematic differences in growth between innovative start-ups (ISUPs) and non-innovative start-ups. We use an ad hoc dataset obtained through merging the financial database AIDA with data from administrative sources (Italian Chambers of Commerce and the Italian Ministry for Economic Development).FindingsThe results show that differences in growth can be explained by the different levels of innovativeness in new ventures. Moreover, unlike in prior studies, the innovation inputs matter more than innovation outputs. Indeed, the results support the idea that innovation policies can contribute to maximising the potential of start-ups.Practical implicationsThe findings provide suggestions for policy makers and entrepreneurs to help firms configure ex ante appropriate actions to support the growth of new ventures in the start-up stage.Originality/valueThis study is the first to use the new objective measure of start-up innovation, available from the Italian LD 221 register. Second, different types of innovation are investigated as antecedents of firm growth. Third, we employ propensity score matching, which favours revealing systematic differences in growth between ISUPs and non-innovative start-ups. Fourth, the results of our study are the first to offer evidence on the effectiveness of the new Italian sustaining ISUPs policy.

Exploring entrepreneurial-group formation by smallholder Burundian farmers

2019 ◽  
Vol 10 (1) ◽  
pp. 85-102
Author(s):  
Bélyse Mupfasoni ◽  
Aad Kessler ◽  
Thomas Lans ◽  
Rama Lionel Ngenzebuke
Keyword(s):  
Group Dynamics ◽  
Qualitative Data ◽  
Early Stage ◽  
Group Formation ◽  
Top Management Teams ◽  
Group Discussions ◽  
Content Type ◽  
Internal States ◽  
Farmer Groups

Purpose The purpose of this paper is to analyze the role of specific internal states (i.e. the set of sustainable values and motivations) that underlie group formation and joint business idea identification of farmer groups in the context of Burundi. Design/methodology/approach Quantitative and qualitative data were combined in this study. Quantitative data were analyzed using basic statistics. Qualitative data were collected in focus group discussions with farmer groups. Findings Findings revealed that groups are not just formed on the basis of homophily (same level of internal states) but also on “compensation” and “committed leadership.” Moreover, prior sustainable behavior of members influences sustainability of new group business ideas and the nature (e.g. focus on farming) of that business idea. Research limitations/implications As this study was done at an early stage of group formation and does not include group dynamics over a longer period of time, further monitoring of the groups is needed to examine if the observed motivation persists. Originality/value Although there is a vast amount of literature on entrepreneurial and top management teams, literature on the (early) mechanisms of entrepreneurial group formation in an emerging economy and rural context is relatively scarce.

Enabling nanotechnology entrepreneurship in a French context

2016 ◽  
Vol 23 (4) ◽  
pp. 1009-1031 ◽  
Author(s):  
Anna Glaser ◽  
Sonia Ben Slimane ◽  
Claire Auplat ◽  
Régis Coeurderoy
Keyword(s):  
Early Stage ◽  
Theoretical Framework ◽  
Mixed Data ◽  
Data Sets ◽  
Enabling Factors ◽  
Content Type ◽  
Entrepreneurial Behaviour ◽  
Starting Point ◽  
University Scientists

Purpose The purpose of this paper is to build a holistic theoretical framework of enabling factors contributing to the development of enterprise in nanotechnology-related industries, in a French context. Design/methodology/approach A systematic literature review methodology was adopted. The review used three gauges to identify enabling factors contributing to the development of enterprise in nanotechnology-related industries in a French context: first, it analysed the literature related to the development of nanotechnologies in a perspective of sustainability in a multidisciplinary stance (“Green view”). Second, it took a disciplinary stance by exploring academic journals in the field of entrepreneurship (“Entrepreneurship view”). Third, it studied the perspective of France (“French view”). Findings The main finding is that in spite of different approaches and sometimes seemingly conflicting stances, the three views converge on three enabling factors: the importance of knowledge sharing across boundaries, access to university scientists and facilities, and government intervention. However, each view also has its particularities: the “Green view” emphasizes the need for civil society inclusion, the “Entrepreneurship view” underlines the importance of early stage capital and entrepreneurial behaviour and the “French view” concentrates on the role of clusters. Research limitations/implications The paper provides a theoretical framework and a starting point for further work on entrepreneurial nanotechnology facilitation. Its findings constitute a benchmark which may be tested in empirical cases. The focus on the French context may be seen as a limitation but also as a source of interesting comparative work focussing on other national or regional contexts. Practical implications The paper shows that public policy is an important element in the nascent field of enterprise development for nano-based materials. It outlines how different contexts create different barriers to entrepreneurship, and it proposes recommendations to overcome some of these barriers. Originality/value In this paper, findings result from an exploration of the nanotechnology literature that focusses solely on nanotechnology data sets and not on mixed data sets. The use of three different gauges leads to the construction of a holistic theoretical framework that includes enabling factors as well as the types of barriers that entrepreneurs have to overcome to succeed.

Is business planning useful for the new venture emergence?

2018 ◽  
Vol 12 (4) ◽  
pp. 847-870 ◽  
Author(s):  
Ya-long Wei ◽  
Dan Long ◽  
Yao-kuang Li ◽  
Xu-sheng Cheng
Keyword(s):  
Early Stage ◽  
Contextual Factors ◽  
New Ventures ◽  
Panel Study ◽  
Binary Logistic Regression ◽  
New Venture ◽  
Business Planning ◽  
Content Type ◽  
Innovative Products ◽  
The Impact

Purpose The purpose of this paper is to build a research model to examine the effects of business planning on the new venture emergence, as well as to examine the moderating effects of innovativeness of products. Design/methodology/approach Four hypotheses are put forward and examined by hierarchical binary logistic regression. The data of this paper are based on the first two waves of data from Chinese Panel Study of Entrepreneurial Dynamics project. Findings Results show that engaging in business planning has a positive effect on the new venture emergence, and the timing of business planning does not affect the new venture emergence significantly. This study also finds that the innovativeness of products has a positive moderating effect on the relationship between the timing of business planning and the new venture emergence. Research limitations/implications This study has some limitations. The innovativeness of products is measured by a single indicator, which may not completely reflect the meaning of the attribute. Moreover, this study explores new ventures only in the nascent stage. Practical implications The study is useful for entrepreneurs to realize the importance of business planning. First, engaging in business planning in early start-up stage is a very valuable activity, because business planning can help new ventures reduce the loss caused by trial and error learning. Second, engaging in business planning is more likely to ensure high innovative products quickly be accepted by the market. Because in the process of new venture emergence, the legitimacy signal to stakeholders can be transmitted and new products can be promoted to get support and recognition from stakeholder through the business plan. Originality/value This paper focuses on the early stage of new venture life cycle and the contextual factors to explore the influence of business planning on the new venture emergence under the logic of legitimacy. This paper could enrich business planning research from the perspective of legitimacy theory by inspiring scholars to focus on the differences between new ventures and mature enterprises and to offer proposals of legitimation strategies suitable for new ventures. Meanwhile, this study contributes to the understanding of the contextual factors of business planning. And it discusses the impact of the attribute in business planning on the new venture emergence, which helps scholars to get a deep thought about the value of business planning in entrepreneurial process.

Exploring the role of business relationships in start-ups’ life cycles

IMP Journal ◽  
2018 ◽  
Vol 12 (3) ◽  
pp. 519-543
Author(s):  
Chiara Cantù ◽  
Sepe Giorgia ◽  
Alessandra Tzannis
Keyword(s):  
Life Cycle ◽  
Secondary Data ◽  
Life Cycles ◽  
Business Relationships ◽  
Structured Interviews ◽  
Content Type ◽  
Strategic Resources ◽  
Start Up ◽  
Start Ups

Purpose Differently from previous works that focused on the entrepreneur and on his ability to manage social relationships, the purpose of this paper is to investigate the role of business relationships in the different stages of the life cycle of a start-up. Design/methodology/approach Since the paper aims to explore startups’ evolutionary phenomenon, it adopts a qualitative abductive methodology, presenting an in-depth study of two innovative Italian start-ups. The research is based on two steps. In the first one, the authors collected secondary data from start-ups’ reports and documents, financial indicators (when available) and processed them to understand their background. In the second one, the authors conducted ten semi-structured interviews, including face-to-face interviews, phone interviews and video conferences. Findings The paper presents a relationship-based life cycle model composed of four different stages, depending on the number and role of relationships developed. Indeed, since the beginning, start-ups adopt a relational approach and their evolution involves the shift from the focus on the entrepreneur to the centrality of a network approach based on interconnected relationships. The entering into a new stage of life cycle depends on relationships, mainly based on connected actors and resources shared and combined. Even if a key role is assumed by technology, the main resource is identified in the knowledge concerning the customer/user’s needs that require marketing competencies, human resources, relational capabilities. Thus, the shift from one stage to the next in the start-up’s life cycle is possible thanks to a parallel shift from a focus on the activities to a focus on those strategic and heterogeneous actors that ensure activities. Originality/value In a traditional perspective, the start-up’s life cycle depends on activities, financial resources and revenues, as stated by previous life cycle models. In a different perspective, as depicted in our analysis, the evolution of a start-up depends on the portfolio of their business relationships. The role of business relationships is hence to facilitate the interconnections within specialized key actors, which allow start-ups to access strategic resources. These resources are essential in order to develop the activities that characterize the specific stage of the life cycle.

Sign in / Sign up

Export Citation Format

Share Document