Abstract
The outcomes of nascent firms (e.g., profitable emergence) are largely impacted by the actions undertaken by nascent entrepreneurs (NEs) during the startup process. Though much is understood about what NEs do to launch their ventures, we lack knowledge regarding why NEs opt to initiate (or avoid) specific actions. We acknowledge the potential that the same factors the lead NEs to initiate actions, or startup activities, may differ from those factors that lead NEs to avoid other activities. As such, we use fs/QCA to examine the configuration of cognitive, emotional, and trait-based factors that influence the initiation of startup activities. Consistent with our hypotheses, we find NEs’ perceptions that (1) a startup activity is essential and (2) they (NEs) possess a high degree of ESE specific to the activity are, independent of one another, sufficient conditions for NEs to initiate a startup activity. Second, we highlight the role of a growth mindset, finding that its presence is a sufficient condition for NEs to initiate a startup activity, particularly when they are confronted with an activity that they perceive to be essential for startup and yet lack a high level of ESE specific to that activity. Our findings regarding startup activity avoidance are also discussed.
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