Implications For Entrepreneurs Research Articles

Founder's human capital, external investment, and the survival of new high-technology ventures

The effect of founder characteristics in attracting external investment and enhancing survival of new high-technology ventures is explored using human capital theory and signalling theory. We test the effect of founder characteristics on external investment in and survival of new high-technology ventures by tracking a random sample of 193 high-technology start-ups, all participants in the Israeli Technology Incubator Program. Founder's business management expertise and academic status attracted external investment, but founder's general technological expertise did not. Founder's business management expertise and general technological expertise positively affected venture survival, but founder's academic status did not. Possible implications for entrepreneurs, investors, policy and further research are discussed.

An empirical study of mechanisms to enhance entrepreneurs' capabilities through entrepreneurial learning in an emerging market

PurposeBased on behavioral learning theory, this paper argues that entrepreneurial learning plays an important role in enhancing entrepreneurs' capabilities. With increasing research attention given to entrepreneurs' capabilities, the need to explore the building mechanism has continued to escalate. The purpose of this paper is to explore the impact of changes in entrepreneurial learning approaches that influence the improvement of entrepreneurs' capabilities.Design/methodology/approachThe authors sent out 1,200 questionnaires, and 226 were returned, of which 167 were usable. The authors used the difference in difference method and the ordinal logistic regression model to analyze the data and test the hypotheses.FindingsIn this paper, the authors report findings using panel data from 167 entrepreneurs. The empirical results show that changes in entrepreneurial learning influence changes in entrepreneurs' capabilities.Practical implicationsCombining theory and evidence from this study, an intertemporal learning model that suggests entrepreneurs' capabilities rest on a self‐reinforcing learning cycle of experiential learning and social network learning from stakeholders is proposed. This is a sense‐making and seizing process affected by entrepreneurs' previous knowledge and their degree of involvement in the organization, which leads them to dedicate increasing resources to the exploration and exploitation of some opportunities, following a process of improving their capabilities.Originality/valueAn empirical verification of the links between learning and capabilities development in the context of China's emerging economy, which has not been studied in the current literature is conducted. This paper provides implications for entrepreneurs in finding the right way to build and enhance capabilities through deployment of learning.

Entrepreneurial burnout: exploring antecedents, dimensions and outcomes

PurposeThe purpose of this paper is to conceptually and empirically explore the antecedents and consequences of entrepreneurial burnout – that is burnout related to the process of discovery or creation of attractive economic opportunities, the assessment of these opportunities, and the decision on the exploitation of opportunities.Design/methodology/approachThis study is a survey of entrepreneurs in New Zealand who were alumni of a university sponsored executive development course for owner‐managers of small‐ and medium‐sized enterprises.FindingsIt is found that role stress is positively related to burnout and that burnout has a negative impact on organizational commitment, organizational satisfaction, and relative perceived firm performance. In addition, implications for entrepreneurs are offered with the objective of providing suggestions to mediate the negative consequences of entrepreneurial burnout.Research limitations/implicationsThe present study is limited by culture – the sample was drawn from New Zealand entrepreneurs; survivor bias – only successful owner‐managers who self‐selected for executive education were in the sampling frame; and the limits of the metrics. The first additional questions would be how widespread is the problem, and how does that vary by type of entrepreneurial endeavor? The secondary research priority concerns the antecedents of burnout in the entrepreneurial context.Practical implicationsEntrepreneurial burnout may have significant social and economic costs that can be minimized with proper treatment and prevention.Originality/valueBurnout has not been extensively explored in the context of entrepreneurs.

Technology emergence through entrepreneurship across multiple industries

AbstractRadical process discontinuities provide opportunities for the founding of new firms across multiple industries; however, little is known about such emergence activity. This article examines nascent technology emergence by studying patterns of related entrepreneurial activity across multiple industries based on a radical process discontinuity. Using historical and statistical methods to examine all nanotechnology firms founded before 2005, I find that during technology emergence, entrepreneurship occurs first in upstream industries. These upstream entrepreneurs provide the technological foundations that enable the founding of firms in other industries developing the technology. The results show the role of industry interaction in the development of both upstream and downstream industries. Implications for entrepreneurs and technology emergence are discussed. Copyright © 2010 Strategic Management Society.

Key Components and Implications of Entrepreneurship: A 4-P Framework

Entrepreneurship has been gaining increasing respect from the research community as a field of scholarly study as well as practical application worldwide as a means to achieve wealth creation and personal fulfillment. Yet, entrepreneurship, as a theoretical construct and practical phenomenon, remains poorly defined and its interpretation fragmented. This article attempts an eclectic account of the major ingredients of entrepreneurship and dissects the entrepreneurship process through a parsimonious 4-P framework: pioneer, perspective, practice, and performance. It is expected that this framework will help us better understand the essence of entrepreneurship: its theoretical underpinnings as well as its practical implications.

Role of positive experiences in teachers' reflective engagement: A case study of three Individual teachers

This study examines determinants for small business success in Bangladesh. These include: characteristic of SMEs, their management and know-how, products and services, style of doing business, financial and other resources and external environment. Such study has not been conducted before in the context of Bangladesh. Findings of the study are useful for entrepreneurs and policy makers. Study is based on survey methodology through a questionnaire administered on the employees of small firms. Data is analyzed using SPSS. Six hypotheses are proposed and tested. Most significant factors affecting business success of SMEs in Bangladesh were found to be products and services, the way of doing business, management know-how and, external environment. This study has implications for entrepreneurs and policy makers.

Performance differentials within geographic clusters

Increasing evidence indicates that firms benefit from a location in a geographic cluster of similar firms. The literature is nearly silent, however, on whether agglomeration economies accrue symmetrically across clustered firms. Drawing from the knowledge-based view, we investigate which firms benefit most from agglomeration and discuss how the implications for entrepreneurs are significant if some firms benefit more from geographic agglomeration than others. We investigate three particular firm attributes that may accentuate or mitigate benefits tied to participation in a cluster. We test our hypotheses on a sample of biotechnology firms and find strong evidence that firms benefit asymmetrically. Younger firms and firms with higher knowledge stocks benefit more from agglomeration.

A Measure of Adaptive Cognition for Entrepreneurship Research

To sense and adapt to uncertainty may characterize a critical entrepreneurial resource. In this research, we employ a metacognitive lens toward the development of a 36–item inventory designed to assess cognitive adaptability, defined as the ability to be dynamic, flexible, and self–regulating in one's cognitions given dynamic and uncertain task environments. Construction of the inventory, and subsequent factor analysis, is confirmatory in nature based on five theoretically justified dimensions of metacognition. We describe the development of the instrument, discuss its implications for entrepreneurship, and finally offer suggestions for further development and testing.

The nature of entrepreneurial experience, business failure and comparative optimism

Entrepreneurial (i.e. business ownership) experience may enable some entrepreneurs to temper their comparative optimism in subsequent ventures. The nature of entrepreneurial experience can shape how entrepreneurs adapt. Using data from a representative survey of 576 entrepreneurs in Great Britain, we find that experience with business failure was associated with entrepreneurs who are less likely to report comparative optimism. Portfolio entrepreneurs are less likely to report comparative optimism following failure; however, sequential (also known as serial) entrepreneurs who have experienced failure do not appear to adjust their comparative optimism. Conclusions and implications for entrepreneurs and stakeholders are discussed.

The aging population and mature entrepreneurs: Market trends and implications for entrepreneurship

This article discusses the statistics and trends surrounding the rapidly aging U.S. population. Older workers will make up an increasing portion of the workforce and these individuals represent an important growing demographic target market. While much has been written about the aging population and the potential for entrepreneurs to target this growing market, little research has been conducted on older entrepreneurs. They are a unique group and this article provides empirical results and discussion about the differences and importance of older entrepreneurs to the economy and as contributors to American society. Practical implications and future research directions are discussed.

Prospects of Super Shop Concept in Dhaka City

With over twenty super markets that follow the theme of arranging all kinds of products under one roof for the consumers operating in full swing, the shopping style of city dwellers has changed dramatically. These super markets are also expanding the market for local products, encouraging new entrepreneurs and also catering for a variety of imported products. The numbers of super shops that have sprouted at different locations of Dhaka over the last two years are showing an upward trend in business and they have further implications for entrepreneurs.

Policy Implications for Entrepreneurship to Promote the Growth Potential of Cultural Industries

Policy Implications for Entrepreneurship to Promote the Growth Potential of Cultural Industries

Optimism, overconfidence and entrepreneurial activity

PurposeThis paper aims to explore the question of confidence in entrepreneurship, and the impact confidence has on key tasks in the venture development process.Design/methodology/approachPropositions about the relationship between key elements of confidence (optimism and overconfidence) are made in order to unpack the confidence construct. Simple tests of these propositions are conducted using a small sample of Australian entrepreneurs. Further propositions are made about the impact of optimism and overconfidence on activity across different phases of the new venture development process.FindingsTwo elements of confidence, optimism and overconfidence, are distinct in their association with each other and with a third individual difference (regulatory focus). The dual and sometimes opposing impacts of optimism and overconfidence on new venture activity are explored. Optimism and overconfidence are both beneficial when deciding to become an entrepreneur, but overconfidence is harmful when making decisions in response to setbacks.Research limitations/implicationsConclusions are limited by the sample size and simple analytical techniques. Rather, the impact of the paper is in the implications of the independence of optimism and overconfidence. Future research can explore and test the propositions made about when each is harmful and when beneficial.Practical implicationsFor entrepreneurs, it is important to be aware of your optimism and overconfidence in different situations. When optimism is beneficial, use it, but when overconfidence is harmful, mitigate against it by asking the right questions and working with others to check assumptions and strategies.Originality/valueThis paper distinguishes between two individual differences, optimism and overconfidence, that are typically thought to be interdependent and beneficial for entrepreneurs.

A Tale of Two Politico-Economic Systems: Implications for Entrepreneurship in Central and Eastern Europe

Following the collapse of socialism in the late 1980s, Central and Eastern European countries initiated attempts to adopt capitalist economic frameworks and promote entrepreneurship. However, persistent economic difficulties and high levels of unemployment have led to dissatisfaction with political parties favoring capitalism. We integrate identity, institutional, and social movement theories to describe the emergence of four competing social movements (capitalist democracy, socialist command, social democracy, and populist command) that are undertaken to pursue politico–economic reforms. We discuss the implications for developing an entrepreneurial culture in Central and Eastern Europe.

The Values and Objectives of Private Forest Owners and Their Influence on Forestry Behaviour: The Implications for Entrepreneurship

There are many factors that determine what forestry activities forest owners carry out in their forest properties and that influence whether forest owners engage in entrepreneurial activity. This paper explores whether the values and objectives of forest owners influence their forestry behaviour and their engagement in entrepreneurial activity. This is done through a review of the literature on private forest owners’ typologies based on owners’ objectives. The review reveals that typologies typically divide forest owners into two main groups. The primary objective of the first group of owners is production (of wood and non-wood goods and services) usually, although not exclusively, so as to generate economic activity. The primary objective of the second group is consumption (of wood and non-wood goods and services). There is a tacit assumption in the studies reviewed that goals and objectives do influence forestry behaviour but few studies have actually assessed whether this is the case. The general finding is that forest owners whose objectives are timber production and who are business-oriented are more likely to manage and harvest their stands. No research focusing on the link between owners’ objective and wider entrepreneurial activity in forests was found.

Achieving competitive advantage in the Mexican footwear industry

PurposeTo provide a systemic view of competitive advantage in small‐ and medium‐sized enterprises (SMEs). Gaining a competitive advantage involves a process that evolves over time and which considers the role of three factors: the entrepreneur, the firm's resources and capabilities and the supporting institutions.Design/methodology/approachThe case study method was selected as an exploratory research method. Many of the findings were based on secondary data while results were confirmed or complemented to some extent by primary data. Primary data were collected via an electronic questionnaire and semi‐structured telephone interviews with SMEs' owners in the Mexican footwear industry.FindingsChanges in the business environment may transform the grounds on which SMEs conduct their business. Consequently, adaptation, new relationships and creativity may emerge as a way to overcome scarcity of resources and/or difficulties in gaining access to resources that contribute to their competitive advantage.Research limitations/implicationsThe results present only a preliminary picture limited to the period 1985‐1999. Furthermore, most findings from the primary data refer to responses provided by medium‐sized enterprises so the position of small enterprises may need to be revised.Originality/valueFindings may pose interesting implications for entrepreneurs, policymakers and supporting institutions, for the way in which they work together and the impact this may have on SMEs' competitive advantage.

Destination Development and the Tourist Life-cycle: Implications for Entrepreneurship in Alpine Tourism

The so called ‘new age of tourism’ influenced the entrepreneurial paradigm considerably. The traditional model of mass tourism changed into a ‘new tourism’ which is presumably characterized by quality seeking customers with multi-optional needs, new production factors (such as information technologies), new business models and new management processes. The aim of this paper is to investigate the relvance of the tourist life-cycle model in deriving implicatone for entrepreneurship within tourism destinations. The literature review reveals a research gap in the field of entrepreneurial strategy options and the execution of operational strategies in tourism destinations. Thus, the paper starts with a short overview of the driving forces of business growth in Alpine tourism. Further, it is argued that the development of Alpine tourism has created a special environment for entrepreneurs in tourism destinations. The second part of the paper, therefore, provides a literature review of tourist life-cycle research. In the next step, the authors attempt to describe specific challenges and qualifications needed for tourism entrepreneurs along the various phases of the destinatoin life-cycle. The paper concludes with recommendations for entrepreneurship development, while making a conribution to research on tourism destinations.

Assessing Founders to Predict Venture Success: Lessons from Psychologists and Venture Capital Firms

: Although risk is inherent in the very definition of entrepreneurship, there is a wealth of existing research that can provide guidance in forecasting a founder's capabilities for success. This literature and its limitations are reviewed with an eye toward implications for entrepreneurship in health and human services.

Key components and implications of entrepreneurship: A 4-P framework

Entrepreneurship has been gaining increasing respect from the research community as a field of scholarly study as well as practical application worldwide as a means to achieve wealth creation and personal fulfillment. Yet, entrepreneurship, as a theoretical construct and practical phenomenon, remains poorly defined and its interpretation fragmented. This article attempts an eclectic account of the major ingredients of entrepreneurship and dissects the entrepreneurship process through a parsimonious 4-P framework: pioneer, perspective, practice, and performance. It is expected that this framework will help us better understand the essence of entrepreneurship: its theoretical underpinnings as well as its practical implications.

Social Entrepreneurship: Challenge for Social Work in a Changing World

In a rapidly changing world, social entrepreneurs innovate and create social value. Social workers today need to redefine their roles to include that of the social entrepreneurs. Social entrepreneurs may be defined as “people with the mission to create and sustain social value. These social change agents are not limited by resources currently at hand but pursue new opportunities to serve people, take calculated risks and engage in a process of continuous social innovation, adaptation and learning. Ultimately, social entrepreneurs have a sense of accountability to the constituencies served and for the outcomes.” The social worker's response to the challenges of the new economic environment and globalisation includes advocating for policies that promote social as well as economic development, social participation, and equality. Implications of entrepreneurship for social work education include training which equips social workers for new challenges and developing curriculum to include new content areas and skills as well as an exposure for a broader knowledge-based economy. The recognition for economics and social connectedness is vital. Conscious effort must also be made to internationalise the social work curriculum and be proactive in initiating faculty and student collaboration, research and exchanges. Social entrepreneurship is a deliberate move from the remedial orientation to developmental activities. The focus should be on enhancing social capital. Social entrepreneurs are the trailblazers to help find new ways toward a better social world.