New Firm Creation in the United States (eBook)

Foreword by Sponsor 6
Preface 8
Notes 10
Contents 11
List of Illustrations 13
Introduction 18
1.1 Entrepreneurship and New Firm Creation 19
1.2 PSED Conceptual Model 20
1.3 PSED Research Protocol 22
1.3.1 Worldwide Replication 26
1.3.2 Overview of the Contents 27
1.4 Final Comment 29
Notes 30
References 30
Part 1: Nascent Entrepreneurs 33
Social Motives in the PSED II 34
2.1 Introduction 34
2.1.1 Numbers of Nascent Entrepreneurs 34
2.1.2 Differences Between the PSED I and PSED II 35
2.2 Social Motives 38
2.2.1 Entrepreneurial Intensity 38
2.2.2 Social Skills 39
2.2.3 Expectancy 42
2.2.4 Career Reasons 43
2.2.5 Data Set Comparisons 45
2.2.6 Future Research 46
Notes 47
References 47
Contextual Motivation and Growth Aspirations Among Nascent Entrepreneurs 50
3.1 Introduction 50
3.2 Contextual Motivation and Growth Aspirations 51
3.3 Opportunity and Necessity Entrepreneurship 52
3.4 Small Business and Entrepreneurial Business Ventures 53
3.5 Context-Aspiration Typology and Nascent Entrepreneurship 54
3.6 Conclusion 61
Notes 62
References 62
Family Background and Influence on Nascent Entrepreneurs 65
4.1 Introduction 65
4.2 Literature Review of Family Background Measures 66
4.3 PSED II Variables on Family Background 67
4.4 Preliminary Analysis of Family Background Variables 68
4.5 Family Teams, Family Background and New Firm Status 75
4.6 Expected Sales and Job Growth of Family and Spousal Pair Team Ventures 76
4.7 Family Teams Investment in Dollars and Hours 77
4.8 Conclusion 79
Notes 80
References 80
Part 2: Start-Up Teams 82
Owner Contributions and Equity 83
5.1 Introduction 83
5.2 Team Processes 83
5.3 Team Processes in the PSED I and PSED II 86
5.3.1 Features of the PSED I and PSED II Team Data 86
5.3.2 Research Opportunities 86
5.3.3 Review of Findings from PSED I 87
5.4 Questionnaire Items in PSED II 87
5.5 Key Methodological Considerations 89
5.5.1 Cases to Keep or Drop 89
5.5.2 Team Versus Teammates 89
5.5.3 Team Size 89
5.5.4 Missing Values 90
5.5.5 Weights 95
5.5.6 Solo Owners 95
5.6 Data Transformations 96
5.6.1 Hours 96
5.6.2 Assistance Contributions 96
5.6.3 Equity 96
5.7 Findings 97
5.7.1 Descriptive Statistics of Measures Available in PSED I and II 97
5.7.2 Measures in PSED II Only 97
5.7.3 Startup Contributions and Entrepreneurial Outcomes in the PSED II 99
5.7.4 Not Studying Teams? 102
5.8 Conclusion 104
Notes 104
References 105
Business Owner Demography, Human Capital, and Social Networks 107
6.1 Introduction 107
6.2 Mechanisms Affecting Owner Team Formation 108
6.2.1 Owner Team Questions in the PSED II 110
6.2.2 Characteristics of Startup Owners 112
6.3 Changes in Owner Team Composition Over Panel Waves 117
6.4 Time Taken to Organize the Owner Team 121
6.5 Discussion 123
Notes 124
References 125
Owner Founders, Nonowner Founders and Helpers 127
7.1 Introduction 127
7.2 Survey Questions 128
7.3 PSED II Descriptive Statistics 129
7.4 Comparing PSED I and PSED II 136
7.5 What Does It Mean to Be a Founder? 138
7.6 Are All ‘‘Founders’’ Equal? 141
7.7 Conclusion 143
References 144
Part 3: The Start-Up Process 146
Institutional Isomorphism, Business Planning, and Business Plan Revision: The Differential Impact on Teams Versus Solo Entrepreneurs 147
8.1 Introduction 147
8.2 Institutional Theory and Business Planning Activity 148
8.3 The Impact of Institutional Forces on Team Versus Individual Planning Behavior 150
8.4 Research Methods 150
8.4.1 Sampling Procedures 150
8.4.2 Measures 151
8.4.2.1 Business Planning 151
8.4.2.2 Institutional Isomorphism 152
8.4.2.3 Control Variables 152
8.4.2.4 Solo Startup Versus Team Startup 153
8.4.3 Models 153
8.5 Results 153
8.6 Discussion 160
8.6.1 Limitations of the Research 162
8.7 Conclusions 163
Note 163
References 164
The Role of Human and Social Capital and Technology in Nascent Ventures 166
9.1 Capital Forms and Concepts 167
9.2 Human Capital 167
9.2.1 Information: Personal Background and Life Context 168
9.2.2 Knowledge: A Source of Cognitive Capability 169
9.3 Social Capital 171
9.3.1 Information: Tie Strength 171
9.3.2 Knowledge: Conceptualizing Capability in Social Capital 172
9.4 Technology as a Context Differentiator 173
9.5 Capital Measures Available in PSED II 174
9.5.1 Human Capital 174
9.5.1.1 Explicit Knowledge 174
9.5.1.2 Tacit Knowledge 174
9.5.1.3 Knowledge of Self 175
9.5.1.4 Life Context and Personal Background 175
9.5.2 Social Capital 176
9.5.2.1 Explicit Knowledge 176
9.5.2.2 Tacit Knowledge 176
9.5.2.3 Structural Capital 176
9.5.2.4 Relational Capital 177
9.5.2.5 Cognitive Capital 177
9.5.3 Technology Context 177
9.6 Preliminary Statistics and Implications for Future Research 178
References 190
Financing the Emerging Firm: Comparisons Between PSED I and PSED II 193
10.1 Introduction 193
10.2 Theory Development and Hypotheses 194
10.2.1 Personal, Monitored, and Unmonitored Financing Sources 195
10.2.2 Characteristics of Funding Source Use 196
10.2.2.1 Gender 197
10.2.2.2 Race 198
10.2.2.3 Education 198
10.2.2.4 Net Worth 198
10.2.2.5 Startup Experience 198
10.2.2.6 Industry Experience 198
10.3 Samples and Questions 199
10.4 Comparisons of PSED I and PSED II 202
10.4.1 Sources of Financing Expectations 207
10.4.2 Sources of Financing Acquired 209
10.5 Discussion and Conclusions 214
10.5.1 Directions for Future Research 214
10.6 Conclusions 216
10.7 Appendix 217
Note 223
References 223
Part 4: Emergence of a New Firm 225
Reconceiving the Gestation Window: The Consequences of Competing Definitions of Firm Conception and Birth 226
11.1 The PSED Sample 228
11.2 The Start-Up Activities: Descriptive Statistics 229
11.2.1 Defining and Measuring New Organization Conception 230
11.3 Defining and Measuring Length of the Gestation Period 232
11.4 Alternative Definitions and the Gestation Window 236
11.5 Implications for Research: Next Questions 239
11.6 Implications for Policy 241
11.7 Overview and Conclusions 242
Notes 243
References 243
Start-Up Activities and New Firm Characteristics 245
12.1 Introduction 245
12.2 Organizational Emergence and the Katz and Gartner (1988) Framework 246
12.2.1 Intentionality 247
12.2.2 Resources 247
12.2.3 Boundary 247
12.2.4 Exchange 248
12.3 Hypotheses 249
12.4 Methodology 250
12.4.1 Sample 250
12.4.2 Measures 251
12.4.2.1 Start-Up Status 251
12.4.2.2 Properties of Emerging Organizations 251
12.4.2.3 Intentionality 252
12.4.2.4 Resources 252
12.4.2.5 Boundary 252
12.4.2.6 Exchange 253
12.4.2.7 Property Completeness 253
12.4.2.8 Control Variables 253
12.5 Results 253
12.5.1 Descriptive Statistics 253
12.5.2 Analytical Procedure 254
12.5.3 Hypothesis Testing 257
12.6 Discussion 259
12.6.1 All Properties Are Necessary for Continuing the Organizing Effort 260
12.6.2 Property Completeness 261
12.7 Implications and Conclusions 261
Notes 262
References 263
Part 5: Cross-Study Comparisons 266
PSED II and the Comprehensive Australian Study of Entrepreneurial Emergence [CAUSEE] 267
13.1 Introduction 267
13.2 Comparison of Project Designs 268
13.3 Prevalence Rates: United States Versus Australia 271
13.3.1 Characteristics of the Nascent Cohorts 273
13.4 Alternative Interpretation 279
13.5 Overview and Commentary 280
Notes 281
References 282
PSED II and the Kauffman Firm Survey 283
14.1 Introduction 283
14.2 Overview of Major Project Features 285
14.3 Identifying PSED II Cases by Start-Up Stage 290
14.4 Identifying KFS Cases by Start-Up Stage 294
14.5 Stages in the Start-Up Process: PSED, KFS Comparisons 295
14.5.1 Respondent 295
14.5.2 Business Venture 297
14.6 Overview 302
14.7 Commentary 304
Notes 305
References 306
Future Opportunities 307
15.1 Future Research Opportunities 308
Reference 310
Panel Study of Entrepreneurial Dynamics II: Research Design 311
A.1 Research Goals 311
A.2 Identification of Nascent Entrepreneurs 312
A.3 Completion of Detailed Interviews with Nascent Entrepreneurs 315
A.4 Data Editing and Cleaning 317
A.5 Missing Data Rates 319
A.6 Online Project Documentation 320
A.7 Questionnaires and Codebook 320
A.8 Format of Data Files 321
A.9 Survey Weights 322
A.10 Calculation of Screening Weights 323
A.11 Weights for Detailed Panel Interviews 324
About the Contributors 329
Index 338