Abstract
Knowledge of factors that determine the transition from nascent entrepreneurship to real entrepreneurship is of major importance for policies aiming to stimulate start-ups effectively. Scholars have concentrated mainly on person-specific factors to explain transition probabilities, and environmental characteristics have been relatively neglected. Given that entrepreneurship is a strongly localized phenomenon, this paper argues that regional entrepreneurial opportunities are a driving force behind the transition from nascent entrepreneurship to new venture creation. Based on unique data from 103 nascent entrepreneurs in the German biotechnology industry, we empirically assess the importance of regional entrepreneurial opportunities for transition probabilities. Further, we introduce a new approach to measure nascent entrepreneurship by capturing details of individuals who participate actively in start-up competitions and have won at least one of these. Controlling for technology and individual characteristics, we find strong support for our hypotheses relating to the significant impact of general regional opportunities, specific regional opportunities and the entrepreneurial environment on the probability of transition from award-winning nascent entrepreneurs to real start-ups.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
