New Venture Creation: A Drift-Variance Diffusion Control Model

2021 ◽  
Author(s):  
Zhengli Wang ◽  
Stefanos Zenios
Keyword(s):  
Early Stage ◽  
New Ventures ◽  
Preliminary Evidence ◽  
Control Model ◽  
New Venture ◽  
Diffusion Control ◽  
New Venture Creation ◽  
Venture Creation ◽  
Trade Off ◽  
Additional Funding

A Model for New Venture Creation New ventures go through multiple stages: In the early stage, there is a business concept and preliminary evidence supporting the concept. In later stages, there are revenues and sales. In each stage, there are usually milestones for the venture to meet in order for investors to provide additional funding. Otherwise, the venture is abandoned. The entrepreneur can engage in a set of costly activities that aim to create value and reach the appropriate milestones. In “New Venture Creation: A Drift-Variance Diffusion Control Model,” Wang and Zenios develop a framework for new venture creation. The authors provide theoretical guidance on the optimal policy, which is relatively simple to describe. Their analysis reveals a trade-off between how costly an activity is and how much upside potential the activity generates, and their result shows how a new venture creator can manage that trade-off.

Industry Gender Imprinting and New Venture Creation: The Liabilities of Women’s Leagues in the Sports Industry

2017 ◽  
Vol 42 (1) ◽  
pp. 94-128 ◽  
Author(s):  
Evelyn Micelotta ◽  
Marvin Washington ◽  
Iva Docekalova
Keyword(s):  
Cultural Values ◽  
New Ventures ◽  
New Venture ◽  
New Venture Creation ◽  
Venture Creation ◽  
Sports Industry ◽  
Male Dominated ◽  
Entrepreneurial Efforts ◽  
Shed Light

This paper examines how industry gender imprinting—the persistence of cultural values, beliefs, norms, and orientations associated with masculinity or femininity—influences new ventures. Our investigation of women’s leagues in the male-dominated sports industry reveals how gender imprinting negatively affects new ventures’ endeavors through three liabilities: identity, conformity, and differentiation. Our findings shed light on the challenges new ventures not aligned with the industry imprint encounter to obtaining material and symbolic support. We contribute to theory by advancing knowledge on how industry-specific sociocultural attributes influence entrepreneurial efforts, and to practice by suggesting how to overcome cultural roadblocks in gendered industries.

Ethnic Minority Graduate Entrepreneurs in the UK

2007 ◽  
Vol 21 (6) ◽  
pp. 455-463 ◽  
Author(s):  
Javed Hussain ◽  
Cindy Millman ◽  
Jonathan Scott ◽  
Paul Hannon ◽  
Harry Matlay
Keyword(s):  
Ethnic Minority ◽  
New Ventures ◽  
New Venture ◽  
Considerable Proportion ◽  
Illustrative Case ◽  
New Venture Creation ◽  
Venture Creation ◽  
Skills Acquisition ◽  
Study Approach ◽  
The Uk

Small ethnic minority businesses make an important contribution to the UK economy, and this is reflected in their rapid growth over the last decade. A considerable proportion of the growth in new venture creation can be attributed to ethnic minority graduates, who increasingly embark on entrepreneurship as a rewarding and fulfilling alternative to paid employment. An illustrative case study approach is adopted for the purpose of this research study. The results of a qualitative investigation of four new venture creation case studies of graduate ethnic minority entrepreneurs in the UK indicate that the main contribution of higher education for these graduate entrepreneurs was in the area of knowledge and skills acquisition. The main motivational factors acknowledged by the respondents included ‘lack of satisfaction’ in working for others, the need to be their own ‘boss’ and achieve more, and the prospect of higher earnings. The authors found no correlation between degree discipline and graduates' propensity to become entrepreneurs. Graduates from non-business disciplines appear to be more likely to engage in entrepreneurship. The size of start-up finance can have an impact on the survival and growth of new ventures. It is therefore suggested that financial institutions and government agencies should develop more focused services, aimed specifically at supporting ethnic minority graduate entrepreneurs in their drive to convert business ideas into thriving and employment-generating enterprises.

scholarly journals Ideation for New Ventures: The Reasonings-Outcomes Matrix, Models and Tools

2021 ◽  
Author(s):  
Meir Russ
Keyword(s):  
New Ventures ◽  
New Product ◽  
New Venture ◽  
New Venture Creation ◽  
Venture Creation ◽  
The Matrix ◽  
New Ideas ◽  
The Subject ◽  
New Research ◽  
First Time

The paper summarizes in a step by step ‘recipe’ format a model of developing new ideas (Ideation) that can be used to form a new venture or develop a new product. The proposed ‘recipes’ are widely used and can be applied in tandem with other prevalently available models or tools. The intention of the paper is also to serve as a resource for entrepreneurs and innovators, and the links and references munificently used in the paper are serving this purpose. The author has used the outline and the tools described here in numerous Ideation classes taught for over a decade in several countries around the world. The paper’s intention is not to conduct a systematic review on the subject of new venture creation or propose new research agenda (for that, see for example Shepherd et al., 2021). The purpose is to provide an effective and efficient set of tools, models and techniques that can assist the entrepreneur in her journey to create and achieve her dreams. One such tool is the matrix of Reasonings-Outcomes introduced here for the first time.

Women Entrepreneurs and Microfinance Institutions

2021 ◽  
pp. 211-227
Author(s):  
Waseem Ul Hameed ◽  
Muhammad Farhan Basheer ◽  
Jawad Iqbal ◽  
Qasim Ali Nisar ◽  
Muhammad Saeed Meo ◽  
...  
Keyword(s):  
Women Entrepreneurs ◽  
New Ventures ◽  
Vital Role ◽  
New Venture ◽  
New Venture Creation ◽  
Women Empowerment ◽  
Positive Contribution ◽  
Venture Creation ◽  
Microfinance Institutions ◽  
Important Relationship

The objective of this chapter is to highlight the important relationship between microfinance institutions and women entrepreneurs in new venture creation. This chapter is proposed because women-empowerment is one of the crucial issues worldwide. In certain parts of the world, women are bound to customs, norms, beliefs, which are unique. These issues are found to promote social problems and hinder the economic contribution from women. In this direction, microfinance institutions are playing a vital role to promote women-empowerment through providing various opportunities to create new ventures. New venture creation increases the women social and economic empowerment through income generation. Various microfinance factors such as micro-credit, micro-saving, micro-insurance, and micro-training/skill development have a significant positive contribution to create new ventures. Finally, this chapter could be beneficial for microfinance institutes, state bank and government in making the strategies to enhance women-empowerment through new venture creation.

Regulation, New Venture Creation, and Resource-Advantage Theory: An Analysis of the U.S. Brewing Industry

2018 ◽  
Vol 43 (5) ◽  
pp. 999-1017 ◽  
Author(s):  
Wesley M. Friske ◽  
Miles A. Zachary
Keyword(s):  
New Ventures ◽  
Social Costs ◽  
Tax Credits ◽  
New Venture ◽  
New Venture Creation ◽  
Venture Creation ◽  
Brewing Industry ◽  
Resource Advantage Theory ◽  
The U.S ◽  
Resource Advantage

Regulation is an important means by which policymakers address social costs. However, recent research suggests that managing social costs often comes at the expense of entrepreneurial activity. We explore this duality by extending resource-advantage theory to examine the effects of excise taxes, small business tax credits and exemptions, and sales restrictions on rates of new venture creation in the U.S. brewing industry. Our longitudinal analysis of state-level brewery regulations reveals that taxes and sales restrictions have adverse but limited effects on new venture creation over time. Furthermore, tax credits and exemptions are positively associated with growth rates of new ventures.

Entrepreneurial ecosystems as fields: Integrating meso-level institutional theory

2019 ◽  
Vol 63 (2-4) ◽  
pp. 64-78 ◽  
Author(s):  
Carolin Auschra ◽  
Thomas Schmidt ◽  
Joerg Sydow
Keyword(s):  
Institutional Theory ◽  
New Ventures ◽  
New Venture ◽  
New Venture Creation ◽  
Venture Creation ◽  
Meso Level ◽  
Entrepreneurial Ecosystems

Abstract Contemporary works on entrepreneurial ecosystems (EEs) suffer from a lack of theorization. We address this problem by conceptualizing EEs as institutional fields, which is an analytical construct that is already well-elaborated on in neo-institutional theory. This theory provides a processual lens that is sensitive to the role of both institutions and agency in field structuration. Additionally, understanding EEs as fields can help to capture dynamics within EEs as well as their relationships with other fields. Following this approach, entrepreneurial issue fields mainly focus on debates around entrepreneurship and new venture creation, whereas entrepreneurial exchange fields focus on products and services produced by and offering support for a set of mainly industry-specific new ventures. In addition, we discuss mechanisms for transformations between both types of fields.

International Entrepreneurship: Case of Happiest Minds

2012 ◽  
Vol 1 (1) ◽  
pp. 17-30
Author(s):  
Nishant Kumar
Keyword(s):  
International Entrepreneurship ◽  
New Ventures ◽  
New Venture ◽  
International New Ventures ◽  
New Venture Creation ◽  
Venture Creation ◽  
International New Venture ◽  
Research And Practice ◽  
Serial Entrepreneur

An in-depth case study of a successful serial entrepreneur in India and the two international new ventures he founded illustrates the entrepreneurial capabilities that are particularly important for successful international new venture creation. This case study examines in detail how potential international entrepreneurs can develop such capabilities in order to improve their chances of gaining success in international new ventures, and concludes with a discussion of the implications of the authors’ findings for entrepreneurship research and practice.

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.

Entrepreneurial Learning and Innovation

2012 ◽  
pp. 245-263
Author(s):  
Jonas Gabrielsson ◽  
Diamanto Politis
Keyword(s):  
Experiential Learning ◽  
Learning Outcomes ◽  
New Ventures ◽  
New Venture ◽  
New Venture Creation ◽  
Venture Creation ◽  
Entrepreneurial Learning ◽  
Creation Process ◽  
Career Experience ◽  
Entrepreneurial Knowledge

The relation between entrepreneurial learning and innovation is poorly understood – especially with respect to how entrepreneurs build up their capability to create new ventures. In this chapter we employ arguments from theories of experiential learning to examine the extent to which entrepreneurs’ prior career experience is associated with entrepreneurial knowledge that can be productively used in the new venture creation process. We relate entrepreneurial knowledge to two distinct learning outcomes: the ability to (1) recognize new venture opportunities, and (2) cope with liabilities of newness. Based on analysis of data from 291 Swedish entrepreneurs, we provide novel insights into how and why entrepreneurs differ in their experientially acquired abilities in different phases of the new venture creation process.

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