Startup spawning: background and formative processes

Abstract

PurposeThis study aims to analyze the phenomenon of entrepreneurial spawning in the new context of software startups, revisiting theory and identifying patterns within the emergence of startups/spin-offs in Brazil.Design/methodology/approachA study of two cases of startups recognized for generating several spin-offs founded by former employees. The authors based the data collection on the following triangulation: 11 in-depth interviews, systematic analysis of 33 resumes from entrepreneurs in spawned firms and document analysis.FindingsSix skills developed in startups were identified: (1) structuring a company, (2) people management, (3) strategic/operational planning, (4) commercial/sales, (5) product development, and (6) behavioral traits. In addition, points of contradiction concerning the literature were found, such as the absence of the location effect, different professional experiences and new local agents to support startups.Research limitations/implicationsThe present study covers only two cases in the context of software startups, which requires caution and discretion in extrapolating to other contexts.Practical implicationsThe understanding of the phenomenon may reflect in: university programs focused on internships in startups, corporate training programs for entrepreneurs and the design of public policies based on entrepreneurial spawning.Originality/valueThe present study stands out for its access to data from high-impact startups in Brazil, in addition to revisiting the literature bringing a new perspective to the specificities of high-growth software companies.