Credibility-Driven Entrepreneurship

2011 ◽  
Vol 12 (1) ◽  
pp. 5-15 ◽  
Author(s):  
Jakob Rehme ◽  
Peter Svensson
Keyword(s):  
New Product Development ◽  
New Ventures ◽  
Marketing Theory ◽  
Start Up ◽  
External Stakeholders ◽  
Entrepreneurship Theory ◽  
First Sale ◽  
Speed To Market ◽  
Start Ups ◽  
Business To Business

This article investigates how external stakeholders influence the first sale of technology-based business-to-business start-up companies. The authors combine entrepreneurship theory with marketing theory to describe the marketing and selling activities of start-ups and how new ventures reach key milestones. The study shows how two start-ups, an e-business firm and a new product development firm, acquired their first customers. The analysis provides a picture of how a network of the firms' founders, board members and owners contributed to their first sales. It also highlights the importance of sales activities, relationships and industrial knowledge. The paper examines the importance of external stakeholders' relative positions in the web of relationships and assesses how relevant these are in affecting outcomes and speed to market. The authors conclude that the first sale follows a time line with three important phases of activities involving credibility, closing and operations. They find that credibility is best obtained through establishing relationships.

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.

ATTITUDE TOWARDS ENTREPRENEURSHIP EDUCATION AND NEW VENTURE CREATION

2003 ◽  
Vol 11 (04) ◽  
pp. 339-357 ◽  
Author(s):  
LENA LEE ◽  
POH-KAM WONG
Keyword(s):  
New Ventures ◽  
Entrepreneurship Education ◽  
Prima Facie ◽  
Causal Link ◽  
New Venture ◽  
Future Research ◽  
Entrepreneurial Education ◽  
Policy Makers ◽  
Start Up ◽  
Start Ups

Does an individual's positive attitude towards entrepreneurship education promote the growth of new ventures? It appears that it does. The empirical results presented in this paper support a prima facie claim that a relationship exists between attitude towards entrepreneurial education and business start-up. The aim of this paper is to investigate the hypothesised positive relationship between new venture founding and attitude towards entrepreneurial education (AEE). Limited if any research on new venture founding in the past has explored the contribution of AEE in business start-ups. A survey is carried out on a large sample (more than 15,000) of tertiary students residing in Singapore. In analysing the dataset, we have controlled for various factors in the regression analysis. Due to the limitations of our study, we are cautious not to assert any causal link between these 2 variables. The implications of the results to policy makers and educators are discussed along with suggestions for future research in order to refine our present understanding of these relationships.

Micro-econometric analysis of innovative start-ups: the role of firm-specific factors and industry context in innovation propensity

2020 ◽  
Vol 29 (4) ◽  
pp. 935-957
Author(s):  
Claudia Capozza ◽  
Sergio Salomone ◽  
Ernesto Somma
Keyword(s):  
Absorptive Capacity ◽  
Industrial Structure ◽  
New Ventures ◽  
Enabling Factors ◽  
Policy Makers ◽  
Technological Value ◽  
Start Up ◽  
Product And Process Innovation ◽  
Product And Process ◽  
Start Ups

Abstract We explore the innovation-enabling factors in young innovative companies (YICs) considering different elements of firm-specific absorptive capacity along with factors related to the industrial structure. Evidence from Italian YICs, known as innovative start-ups whose creation was prompted by the Start-up Act in 2012, shows that absorptive capacity factors matter with differences for product and process innovation. Moreover, the configuration of the industry context remarkably shape innovation, providing implications for policy-makers seeking to improve the national competitiveness by sustaining new ventures of high technological value.

scholarly journals Does Information Asymmetry Influence Hi-tech Entrepreneurial Financing?

2021 ◽  
Vol 5 (4) ◽  
pp. p9
Author(s):  
Anthony LIU
Keyword(s):  
Information Asymmetry ◽  
New Ventures ◽  
High Tech ◽  
Liability Of Foreignness ◽  
Financing Decisions ◽  
Start Up ◽  
Entrepreneurial Financing ◽  
Start Ups ◽  
Main Effects ◽  
Moderating Role

Exploring the effective ways of start-up financing is an important and practical issue to technological innovation and economic development. This paper aims to investigate the impacts of information asymmetry on the high-tech start-up financing preference, and whether an entrepreneur’s internationality features moderate the main effects. A sample of 500 high-tech start-ups and new ventures was collected at Shenzhen, China. Regression models are designated for testing both the main effects predicted in research hypotheses and the predicted moderating role of an entrepreneur’s internationality features. Our test results lead to 3 findings: firstly, in the high-tech industries, the information asymmetry mitigated by disclosing intellectual properties can significantly increase the start-up preference for external financing. This finding can be explained by the reduction of agency costs of debts. Secondly, the lessened information asymmetry can shorten the life cycle of start-up financing under the pecking order hypothesis. Lastly, the liability of foreignness is observed to have a significant positive moderating role on the main effects under the investigation. It can be concluded that the information asymmetry and the liability of foreignness are crucial factors influencing start-up financing decisions.This conclusion implies that reducing the information asymmetry by adequately disclosing technological strength and tacit knowledge can benefit the entrepreneurial financing for the high-tech start-ups and new ventures at the early stages, as well as provide an effective shortcut to the start-up financing cycle. Furthermore, the introduction of overseas technologies, funds, knowledge, experiences, and entrepreneurship into the high-tech start-ups does not create the liability of foreignness, and on the contrary, it is an “asset” that can help improve entrepreneurial financing decisions.

scholarly journals Why Do Digital Native News Media Fail? An Investigation of Failure in the Early Start-Up Phase

2020 ◽  
Vol 8 (2) ◽  
pp. 51-61 ◽  
Author(s):  
Christopher Buschow
Keyword(s):  
New Media ◽  
News Media ◽  
New Ventures ◽  
Case Study Research ◽  
Digital Native ◽  
Early Start ◽  
Start Up ◽  
Digital News ◽  
User Orientation ◽  
Start Ups

Digital native news media have great potential for improving journalism. Theoretically, they can be the sites where new products, novel revenue streams and alternative ways of organizing digital journalism are discovered, tested, and advanced. In practice, however, the situation appears to be more complicated. Besides the normal pressures facing new businesses, entrepreneurs in digital news are faced with specific challenges. Against the background of general and journalism specific entrepreneurship literature, and in light of a practice–theoretical approach, this qualitative case study research on 15 German digital native news media outlets empirically investigates what barriers curb their innovative capacity in the early start-up phase. In the new media organizations under study here, there are—among other problems—a high degree of homogeneity within founding teams, tensions between journalistic and economic practices, insufficient user orientation, as well as a tendency for organizations to be underfinanced. The patterns of failure investigated in this study can raise awareness, help news start-ups avoid common mistakes before actually entering the market, and help industry experts and investors to realistically estimate the potential of new ventures within the digital news industry.

Lowering the Bar? External Conditions, Opportunity Costs, and High-Tech Start-Up Outcomes

2021 ◽  
Author(s):  
Annamaria Conti ◽  
Maria P. Roche
Keyword(s):  
Labor Market ◽  
New Ventures ◽  
Performance Outcomes ◽  
High Tech ◽  
Opportunity Costs ◽  
Market Conditions ◽  
Data Set ◽  
Labor Market Conditions ◽  
Start Up ◽  
Start Ups

We assess the heterogeneous impact of economic downturns on individuals’ decisions to bring high-technology ideas to the market in the form of new ventures. We thereby examine how worsening labor market conditions influence individuals’ opportunity costs of starting new ventures, the resulting composition of the entrepreneurial pool, and start-up performance outcomes. Using a rich data set of start-up founders in the biotechnology and medical device sectors, we find that an increase in the unemployment rate is associated with a substantial rise in the share of entrepreneurs who are most sensitive to worsening labor market conditions. Additionally, we find that start-ups founded by these entrepreneurs display lower financial and innovative performance than start-ups founded by entrepreneurs who are relatively insensitive to business cycles. Finally, we provide suggestive evidence that individuals’ heterogeneous response to worsening labor market conditions is a relevant factor in explaining the negative relationship between unemployment and start-up performance outcomes.

New Business Start-ups: The More The Better?

1997 ◽  
Vol 8 (4) ◽  
pp. 253-264 ◽  
Author(s):  
John F. Pinfold
Keyword(s):  
New Zealand ◽  
Failure Rate ◽  
Positive Impact ◽  
New Ventures ◽  
High Rate ◽  
Business Failure ◽  
Start Up ◽  
New Business ◽  
Start Ups

The importance of new ventures in the economic process is well established and many governments embark on programs designed to stimulate new businesses start-ups in the belief that increasing the number of new businesses will have a positive impact. Much effort is expended in trying to reduce the failure rate of businesses, usually based on the belief that failure is the result of rectifiable shortcomings within a business, particularly a failure in management. This paper looks at start-up businesses in New Zealand for the period 1987 to 1994. It shows that during the period studied, 5.75 times as many new businesses started up as the economy was able to absorb, and argues that this large oversupply is the underlying cause of the high rate of business failure. Conventional methods aimed at reducing business failure are therefore incapable of reducing the failure rate, they merely help decide who the survivors will be. The paper argues that, in New Zealand, programs aimed at increasing the volume of new business start-ups are misguided and that it is impossible for the economy to absorb the volume of new firms entering the market. It seems likely that a similar situation exists in other western countries and that public policy efforts would be better directed at improving the quality of start-ups rather than the quantity.

scholarly journals Development Trajectory of An Innovation-Based Environmental Technology Start-Up

2017 ◽  
Vol 3 (1) ◽  
pp. 99-112
Author(s):  
Saukkonen Juha ◽  
Vänttinen Kari
Keyword(s):  
Focal Point ◽  
Renewable Energy Sources ◽  
New Ventures ◽  
Global Business ◽  
Environmental Technology ◽  
Global Issues ◽  
Stage Models ◽  
Start Up ◽  
Start Ups

This research paper focuses on the growth models of new business ventures and their applicability to a specific type of start-up, environmental technology–based growth company via a case study. Start-ups companies are a focal point of interest of this decade. Start-ups develop products and services in conditions of market and technological uncertainty and competitive volatility. Due to their crucial role in the net job creation there is a growing need and interest to understand, model and develop start-ups. One industry of high interest in regards of start-up activity is that of environmental technology business, as it is addressing needs for solving problems related to such global issues as pollution, waste management and need for renewable energy sources. However, there is a very limited amount of prior research focusing specifically to start-up companies in this field. E.g. the growth stage models of start-up companies do not take in account the time dimensions caused by capital and regulatory demands that differentiate the development pace and stages of development of an environmental technology start-up from its peers in other industries. On the other hand, general research of environmental technology businesses often lacks the entrepreneurial and start-up focus, bundling efforts of new ventures in the field together with major projects by established companies. The aim of this paper is to provide a framework that helps understanding the growth process of new ventures in the aforementioned industry. In this case study, the authors assessed the suitability of models of growth dimensions, sources and obstacles proposed by earlier research and literature to a case company: a start-up company providing environmental technology for global business-to-business markets. Via qualitative, interview-based data collection among the company stakeholder and external business experts and analysis of the obtained qualitative data the authors were able to draw conclusions regarding compatibility of the case to the earlier models of new venture growth. The results obtained shows that despite the common features between the case company´s growth trajectory and models proposed by earlier research, none of the stage models offers a full match. Based on the findings the authors propose a new, partly cyclical model of start-up growth for further elaboration.

scholarly journals The importance for a start-up to trust in open innovation: A systematic literature review

2020 ◽  
Vol 9 (4) ◽  
pp. 289-297
Author(s):  
Katia Mastrostefano ◽  
Gustavo Morales-Alonso ◽  
Marco Greco ◽  
Michele Grimaldi ◽  
Jose Antonio Blanco-Serrano
Keyword(s):  
Open Innovation ◽  
New Ventures ◽  
Innovation Adoption ◽  
Well Being ◽  
Crucial Point ◽  
Start Up ◽  
External Sources ◽  
Start Ups ◽  
Manage Innovation ◽  
Innovation Processes

It has long been known that new firms are fundamental for economic growth. Starting new companies is one of the best ways to fight unemployment and to generate well-being. Therefore, attention is paid by the scientific community to start-ups, with particular empha-sis at how they generate, acquire and manage innovation. Initially, start-ups need to identify the resources necessary for innovation and later they will decide whether to develop them internally or acquire them externally. Being open to external sources is a crucial point for the success of new ventures; indeed, adopting Open Innovation processes allows start-ups to overcome their initial shortcomings. The goal of this research is to understand the literature status related to Open Innovation adoption by start-ups.

Institutional entrepreneurship and organizational innovation

2016 ◽  
Vol 17 (2) ◽  
pp. 110-119 ◽  
Author(s):  
Sergio Albertini ◽  
Caterina Muzzi
Keyword(s):  
Organizational Innovation ◽  
New Ventures ◽  
Status Quo ◽  
Longitudinal Case Study ◽  
Institutional Entrepreneurship ◽  
Institutional Work ◽  
Start Up ◽  
Entrepreneurship Theory ◽  
Shed Light

In this article, we address the question of institutional and organizational change through the start-up of new ventures. Following the institutional entrepreneurship theory, we examine the process of divergent change and the kinds of institutional work enabling entrepreneurs operating in a peripheral social position of mature fields to challenge the existing status quo. We argue that the start-up of new organizations can be an opportunity for repositioning existing traditional entrepreneurial capabilities by combining them with additional and complementary competences towards new institutional logics. Building on an in-depth longitudinal case study of a group of Italian small and medium-sized enterprises – acting intentionally as a community for innovation – we highlight the contextual conditions and the implementing factors allowing this type of institutional entrepreneurship. Our study makes two main contributions. First, we try to fill the gap with existing research mostly focused on dominant organizations, by showing how institutional entrepreneurship can be implemented by low-status organizations, within highly institutionalized fields. Second, we shed light on the process implementing new divergent organizational forms, by bridging established mature firms with new innovative fields.

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