Legitimacy, Entrepreneur Characteristics and Financing Effect of New Ventures - Evidence From Chinese Start-Ups

Abstract

Research shows that both corporate legitimacy and entrepreneurs' personal characteristics have a significant impact on the financing effect of new ventures. However, there are few studies on the complex causal relationship between corporate legitimacy, entrepreneurs' personal characteristics and corporate financing effect. In this study, the legitimacy of new ventures is regarded as an important node of enterprise development, and the legitimacy of start-ups is regarded as two different situation variables of logical "yes" and "no" and the characteristics of entrepreneurs to complete the construction of the model. And the path to achieve high financing effect is deeply analyzed and discussed under the circumstance that the entrepreneur's personal characteristics are restricted by enterprise legality. Results show: in the enterprise legitimacy for logic "not" scenario, entrepreneurs with high education level and the business failure of personal characteristics is the necessary condition to obtain high financing effect, enterprise legitimacy as the logic of "is" scenario, entrepreneurs with high education level of personality is the necessary condition to obtain high financing effect.