The Impact of Collective Optimism on New Venture Creation and Growth: A Social Contagion Perspective

2018 ◽  
Vol 42 (3) ◽  
pp. 390-425 ◽  
Author(s):  
Aaron H. Anglin ◽  
Aaron F. McKenny ◽  
Jeremy C. Short
Keyword(s):  
Social Processes ◽  
Social Contagion ◽  
New Venture ◽  
Curvilinear Relationship ◽  
Alternative Measure ◽  
Venture Creation ◽  
Individual Decision ◽  
Media Reports ◽  
Future Outcomes ◽  
The Impact

Social contagion research suggests that individual decision making is shaped by collective, social processes. We extend the entrepreneurial optimism literature by arguing that collective optimism—the shared, positive expectations about future outcomes—is salient to key entrepreneurial outcomes. We test our position by examining how fluctuations in U.S. collective entrepreneurial optimism influence venture creation and growth using 1993–2010 NFIB entrepreneurial optimism data. Results indicate that collective entrepreneurial optimism exhibits a curvilinear relationship with venture creation and growth, which is moderated by environmental dynamism. We validate the NFIB measure by constructing an alternative measure of collective entrepreneurial optimism using media reports.

The art of entrepreneurial market creation

2014 ◽  
Vol 16 (2) ◽  
pp. 163-182 ◽  
Author(s):  
Kim Lehman ◽  
Ian Ronald Fillis ◽  
Morgan Miles
Keyword(s):  
New Venture ◽  
New Venture Creation ◽  
Additional Contribution ◽  
Venture Creation ◽  
Content Type ◽  
Entrepreneurial Marketing ◽  
Market Creation ◽  
Arts Marketing ◽  
The Impact

Purpose – The purpose of this paper is to use the case of the Museum of Old and New Art (MONA) in Hobart, Tasmania, to investigate the role of entrepreneurial marketing (EM) in shaping an arts enterprise. It draws on the notion of effectuation and the process of EM in explaining new venture creation and assesses the part played by David Walsh, the entrepreneurial owner/manager. Design/methodology/approach – This case study analysis enables an in-depth appraisal of the impact of EM and effectuation within the growing domain of arts marketing. Findings – The paper offers a glimpse into how creativity and business interact in the creation of new markets. It demonstrates how formal methods of marketing are bypassed in the search for owner/manager constructed versions of situational marketing. In addition, it provides insight into dominance of entrepreneur-centrism vs customer-centrism in entrepreneurship marketing. An additional contribution to knowledge is the use of effectuation to assist in better understanding of the role of EM in the market creation process. Originality/value – The research carried out here builds on a growing body of work adopting the EM lens to better understand arts marketing and new venture creation.

The heavy cost of kumbaya–understanding the survival implications of nascent venture ownership structure

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
David Noack ◽  
Douglas R. Miller ◽  
Rebecca Guidice
Keyword(s):  
Ownership Structure ◽  
Critical Time ◽  
Psychological Ownership ◽  
New Venture ◽  
New Venture Creation ◽  
Venture Creation ◽  
Content Type ◽  
Team Members ◽  
Founding Team ◽  
The Impact

PurposeThis paper brings in relevant entrepreneurial behavior theory to understand the ownership decisions founders make during the nascent stage of new venture creation, and how such decisions impact the viability of the firm.Design/methodology/approachThe authors examine the behavior and decision making of 137 lead founders during the nascent stage of new venture creation. Psychological ownership and environmental uncertainty are measured of lead founders when dividing up firm ownership among the founding team. Using a longitudinal approach, these nascent-stage decisions are then analyzed to understand the impact on the new venture one year later.FindingsCounter to prior research suggesting teams are better off with identical wages and ownership, the authors find such harmony (i.e. “kumbaya”) pursuit to be a detriment to new venture emergence. Specifically, this study finds that nascent ventures are better off with an unequal ownership split among the founding team members. These findings suggest that nascent firms with an unequal split are more likely to move beyond the nascent stage and launch a functional business.Research limitations/implicationsAlthough the results of this study offer a valuable contribution to lead founders and new businesses, the study looked at each startup independent of another and is therefore not able to draw any conclusions related to competitiveness.Practical implicationsLead founders and founding teams frequently divide ownership evenly among the founders. This paper shows that, while convenient, the decision to divide ownership equally can hamper a nascent firm as it moves toward the launch phase of the startup process. These results should motivate founders to think deeply regarding the ownership structure decision and, at the very least, consider the possible negative costs associated with the pursuit of founding team unity.Originality/valueWhile scholars have brought attention to the nascent stage, few have identified and analyzed the decisions that take place during this critical time of the new venture development process. Furthermore, even is less is known of the impact nascent decisions have on startup launch. This study sheds light on these areas.

Promoting New Venture Creation in Thailand Through Entrepreneurship Education: Role of Entrepreneurial Awareness, Mindset and Skill Development

2019 ◽  
Vol 16 (11) ◽  
pp. 4630-4637
Author(s):  
Sudawan Somjai ◽  
Luedech Girdwichai ◽  
Thaniya Pongsiri
Keyword(s):  
Skill Development ◽  
New Venture ◽  
Venture Creation ◽  
Entrepreneurial Education ◽  
Educational Training ◽  
Training And Education ◽  
Thai Students ◽  
The Creation ◽  
The Impact

The purpose of this paper was to analyze the impact of entrepreneurial education on venture creation along with the mediating roles of entrepreneurial awareness, entrepreneurial mindset, and entrepreneurial skill development. Entrepreneurial Education plays a key role in offering the prospects for graduates to take in the attitude, approach, entrepreneurial mindset and skill development required for the creation of a new venture. For the current paper, the researcher selected the method of quantitative. The researcher of this paper collected data from the Thai students of a few universities. The researcher collected data from those students who were convenient to take part in the study. The findings of this research paper demonstrate that entrepreneurial education is very crucial for students to start a new venture. In this paper, the writer of the paper conducted a quantitative study and collected data from the students of the universities of Thailand. The results of the study depict that all the four hypotheses of this paper were accepted, the universities should provide educational training and education to their students so as to make them aware and develop their mindsets which will assist them in the creation of the venture.

scholarly journals Regional Opportunities and Policy Initiatives for New Venture Creation

2009 ◽  
Vol 27 (5) ◽  
pp. 608-625 ◽  
Author(s):  
Ingrid Verheul ◽  
Martin Carree ◽  
Enrico Santarelli
Keyword(s):  
New Venture ◽  
New Venture Creation ◽  
Venture Creation ◽  
Firm Formation ◽  
Large Cities ◽  
Policy Initiatives ◽  
New Firm Formation ◽  
Italian Provinces ◽  
New Firm ◽  
The Impact

This article investigates the determinants of new venture creation across industries and locations for 103 Italian provinces between 1997 and 2003. Allowing for differences in regional opportunities across industries, we investigate the impact of a range of factors, including policy initiatives, on new firm formation in manufacturing, retailing and wholesaling, hotels and restaurants. Our results show that regions with industrial districts are characterized by higher start-up rates in manufacturing and that wage costs deter entry in this industry. Firm entry in commercial sectors appears to be higher in large cities and areas with strong economic progress. For hotels and restaurants we find that tourism positively influences new firm formation. We do not find a significant effect of recently introduced regional laws promoting new firm formation in Italy.

scholarly journals Venturing under fire

2018 ◽  
Vol 60 (7/8) ◽  
pp. 749-766 ◽  
Author(s):  
Oluwaseun Kolade
Keyword(s):  
Poverty Reduction ◽  
Single Case ◽  
New Venture ◽  
New Venture Creation ◽  
Youth Empowerment ◽  
Venture Creation ◽  
Content Type ◽  
Study Approach ◽  
University Undergraduates ◽  
The Impact

Purpose The purpose of this paper is to examine how a new entrepreneurship education (EE) intervention offered at conflict-ridden Maiduguri, Nigeria, is having transformative impacts through new venture creation and poverty reduction. Design/methodology/approach The paper adopts a single case study approach, drawing from in-depth interviews of participants, experts, and facilitators of the entrepreneurship training, in addition to relevant memos and documents. Findings The findings indicate that the EE programme is, by generating awareness and facilitating skill development, contributing to new venture creation, poverty reduction, and positive change in mindset. However, the impact is limited by inadequate support through venture capital and limited facilities for business incubation. Research limitations/implications This study is limited in its focus on EE provided for university undergraduates and graduates. Further research should explore interventions aimed at less-educated youth in the region, and in other conflict contexts. Social implications The study suggests that EE facilitates youth empowerment through venture creation, in the process transforming them from aggrieved outsiders to active stakeholders in societal peace and national prosperity. Originality/value The nascent theory of transformative entrepreneuring identifies poverty reduction and conflict resolution as the main mechanisms. This paper focuses on how EE triggers new venture creation, which in turn contributes to poverty reduction and overall change in mindset of otherwise unemployed and aggrieved youths.

THE IMPACT OF BUSINESS CLIMATE, FOREIGN POPULATION AND UNEMPLOYMENT ON NEW VENTURE CREATION

2012 ◽  
Vol 17 (04) ◽  
pp. 1250021 ◽  
Author(s):  
MARK HOELSCHER ◽  
BALASUBRAMANIAN ELANGO
Keyword(s):  
New Ventures ◽  
State Level ◽  
New Venture ◽  
New Venture Creation ◽  
Venture Creation ◽  
Business Climate ◽  
Foreign Population ◽  
Time Period ◽  
Level Data ◽  
The Impact

This paper seeks to add to the literature on regional factors that drive development of new ventures. In particular, it investigates the effects of business climate, foreign population and unemployment on new venture creation. Using state level data from the time period 2003–2007, we find that while business climate and foreign population are positively related to new venture creation, unemployment is negatively related. Implications of this study for fostering entrepreneurship are discussed.

scholarly journals Reframing the Arts within the Liberal Arts Community

2020 ◽  
Vol 9 (2) ◽  
Author(s):  
Sarah Archino ◽  
Marta Lanier ◽  
Ross McClain
Keyword(s):  
Experiential Education ◽  
Liberal Arts ◽  
New Venture ◽  
Central Component ◽  
New Venture Creation ◽  
Venture Creation ◽  
The Arts ◽  
Professional Artists ◽  
The Impact ◽  
Arts Community

The dominance of New Venture Creation and Skills for Transitioning models has produced scholarship focusing on the impact of entrepreneurial pedagogy on graduates who pursue careers within the arts. This paper shares a liberal arts approach, positioning arts as a central component in the creation of an entrepreneurial mindset with benefits for students throughout campus. Shifting our department to cultivate an entrepreneurial mindset through arts-based experiential education, we have created an alternate approach that can serve those who wish to become professional artists, but also provides value for the majority of our students who will not remain in the arts.

Founder Characteristics, Start-Up Process, and Strategy/Structure Variables as Predictors of Shortline Railroad Performance

1997 ◽  
Vol 22 (1) ◽  
pp. 5-24 ◽  
Author(s):  
Harry J. Sapienza ◽  
Curtis M. Grimm
Keyword(s):  
General Education ◽  
Goal Attainment ◽  
Firm Growth ◽  
New Venture ◽  
Curvilinear Relationship ◽  
Business Courses ◽  
Start Up ◽  
Public Data ◽  
Alternative Measures ◽  
The Impact

This study combined secondary public data and a survey of founders of 70 shortline railroads to examine correlates of shortline railroad performance. Among founder characteristics, general education level of the founder was positively related to goal attainment, while the number of business courses exhibited a curvilinear relationship. Goal attainment was positively related to three strategy/industry structure variables: the percentage of traffic originated locally, the size of the railroad, and the degree to which the firm focused on customer satisfaction. Supplementary analyses on the determinants of firm growth revealed some overlap with and some differences from these results. In general, the study indicates that models of new venture performance should include a comprehensive set of variables and consider the impact of alternative measures of performance.

scholarly journals The museum of old and new art

2016 ◽  
Vol 23 (1) ◽  
pp. 85-96 ◽  
Author(s):  
Ian Fillis ◽  
Kim Lehman ◽  
Morgan P Miles
Keyword(s):  
Cultural Tourism ◽  
Art Museum ◽  
New Venture ◽  
Venture Creation ◽  
Tourist Destination ◽  
Entrepreneurial Marketing ◽  
The Arts ◽  
Tourism Sector ◽  
The Impact

Entrepreneurial marketing is used to understand new venture creation in the vacation tourism sector through a case study of private art museum in Tasmania that has become a tourist destination of major international significance. The Museum of Old and New Art (MONA) has emerged as a major driver of tourism in the region. Interrogation of the arts and cultural tourism literature sets up a key research proposition – in arts and cultural tourism, the unique artistic tastes of the entrepreneur often trump customer needs and preferences by shaping the visitor’s experience through creative artistic innovation. The findings support our proposition, with additional grounding through the impact of the owner/manager and associated entrepreneurial marketing and effectuation impacts.

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