New Business Creation (eBook)

Preface 8
Contents 10
List of Figures 14
List of Tables 16
Chapter 1: Introduction 22
1.1 Introduction 22
1.2 Entrepreneurship and Firm Creation 24
1.3 Conceptualization of the Entrepreneurial Process 26
1.4 Global Comparisons of Stages in the Business Life Course 28
1.5 Overview of the Country Studies 32
1.6 Conceptual and Operational Definitions 34
1.6.1 Identifying Nascent Entrepreneurs 34
1.6.2 Operational Measures of Transitions 39
1.7 Chapter Overviews 42
1.8 Commentary 45
References 45
Chapter 2: Comprehensive Australian Study of Entrepreneurial Emergence (CAUSEE): Project Presentation and Early Results 47
2.1 Introduction 47
2.2 Context and Research Team 48
2.3 Definitions of Critical Events 49
2.4 Methodological Overview 52
2.5 Sample Characteristics and Early Results 56
2.6 Additional Process Observations 63
2.7 A Brief Look at Outcomes 65
2.8 Concluding Remarks 69
References 70
Chapter 3: The Canadian Panel Study of Entrepreneurial Dynamics 72
3.1 Introduction 72
3.2 Research Collaboration 73
3.3 Conceptual and Operational Definitions of Critical Events 74
3.4 Methodological Overview 74
3.4.1 Research Design 75
3.5 Data Collection 75
3.6 Description of the Sample 77
3.7 Who Are Canadian Nascent Entrepreneurs? 83
3.7.1 Their Motivation to Get into Business 84
3.7.2 What Kind of Businesses Are They Starting? 85
3.7.3 What Are They Doing to Get started? 86
3.7.4 Their Goal-Setting Commitment 86
3.8 Team Structures 86
3.9 Nascent Entrepreneurs and Gender Issues 87
3.10 Process 91
3.11 Outcome Overview 91
3.12 Exploring the Factors Associated with Outcomes 94
3.12.1 Individual Factors and Engagement in the Start-up Process 95
3.12.2 The Nature and Impact of Gestation-Specific Human Capital 96
3.12.3 Start-up Activities and New Venture Emergence 100
3.12.4 Exploring the Adequacy of “New Firm” Measurement 104
3.13 Impact of the Project on Policy and Scholarship 109
3.14 Appendix 110
References 110
Chapter 4: Anatomy of Business Creation in China: Initial Assessment of the Chinese Panel Study of Entrepreneurial Dynamics 113
4.1 Introduction 113
4.2 Research Context and Team 114
4.3 Previous Research and Design Considerations 114
4.3.1 Entrepreneurship and Institutional Transition in China 115
4.3.2 Comparison Between the CPSED and US-PSED 117
4.3.3 Research Framework and Design of the CPSED 118
4.4 Methodology 120
4.5 Entrepreneurs: Number and Characteristics 123
4.5.1 The Prevalence of Nascent Entrepreneurs 123
4.5.2 Characteristics of NEs 126
4.6 The Start-up Process: What Nascent Entrepreneurs Do? 129
4.7 The Outcome: What Types of Firms Are Started? 131
4.8 Conclusion 133
References 137
Chapter 5: German Panel of Nascent Entrepreneurs 140
5.1 Introduction 140
5.2 Project Development 140
5.3 Intellectual Background and Framework 141
5.4 Conceptual and Operational Definitions of Critical Events 143
5.5 Methodological Overview 145
5.6 Entrepreneurs: How Many and What They Are Like? 150
5.7 The Start-up Process 153
5.8 Conclusions 157
References 158
Chapter 6: Latvia: Panel Study of Entrepreneurial Dynamics Overview 159
6.1 Introduction 159
6.2 Project Development and Research Team 160
6.3 Methodological Overview 161
6.3.1 Screening and Wave 1 161
6.3.2 Wave 2 and Future Plans 165
6.4 Characteristics of Nascent Entrepreneurs and their Business Ventures 167
6.4.1 Prevalence of Nascent Entrepreneurs 167
6.4.2 Who Becomes Engaged in Nascent Entrepreneurship? 168
6.4.3 Nascent Enterprise Profile 172
6.5 The Start-up Process 174
6.6 Outcome Overview 180
6.7 Conclusion 187
References 189
Chapter 7: New Business Creation in the Netherlands 191
7.1 Introduction 191
7.2 Program Development and Background 192
7.3 Operational Definitions and Methodology 192
7.4 Nascent Entrepreneurs in the Netherlands 195
7.4.1 Start-up Process 196
7.4.1.1 Development of the Firm 196
7.4.1.2 Gestation Activities 197
7.4.1.3 Start-up Constraints 197
7.4.2 Business Characteristics 199
7.4.2.1 Industry Characteristics 199
7.4.2.2 Competitive Strategy 199
7.4.3 Human Capital Characteristics 200
7.4.3.1 General Human Capital 200
7.4.3.2 Specific Human Capital 201
7.4.3.3 Broadness of Human Capital 202
7.5 Outcome Overview 202
7.5.1 The 1998 NL Project (the Dutch ERC Study) Outcome Assessment 203
7.5.2 The 2006–2007 GE-NL Project Outcome Assessment 204
7.5.3 Comparing the Two Projects 206
7.6 Discussion and Conclusion 207
References 208
Chapter 8: Business Start-up Processes in Norway 210
8.1 Introduction 210
8.2 Project Development 211
8.3 Conceptual and Operational Definitions of Critical Events 211
8.4 Methodological Overview 213
8.4.1 Sample 213
8.4.2 Classification of Nascent Entrepreneurs and Business Founders 214
8.4.3 Business-Gestation Activities 215
8.5 Entrepreneurs: How Many Are They and What Are They Like? 217
8.6 The Start-up Process and Outcome Overview 219
8.6.1 Business-Gestation Activities and Start-up Propensity 220
8.6.2 Entrepreneurial Experience: Novice, Serial, and Portfolio Business Founders4 222
8.6.3 Gender Differences in the Business Start-up Process 226
8.6.4 Resources of Nascent Entrepreneurs 230
8.7 Conclusions 233
8.7.1 Policy Implications 234
8.7.2 Concluding Remarks 235
References 236
Chapter 9: The Swedish PSED: Performance in the Nascent Venturing Process and Beyond 238
9.1 Introduction 238
9.2 Project Development and Background 239
9.3 Conceptual and Operational Definitions and Critical Events 239
9.4 Method 241
9.5 The Longitudinal Study 242
9.6 “Swedish” Entrepreneurs 245
9.7 Who Becomes a Nascent Entrepreneur in Sweden? 247
9.8 Gender Differences 249
9.9 Nascent Enterprise Profile 251
9.10 The Start-up Process 255
9.11 Outcomes from the Nascent Venturing Process and Beyond 262
9.12 Conclusions from the Swedish PSED 266
References 267
Chapter 10: United States: Panel Study of Entrepreneurial Dynamics I, II Overview 269
10.1 Introduction1 269
10.2 Program Development and Background 270
10.3 Conceptual and Operational Definitions of Critical Events 272
10.4 Methodological Overview 273
10.5 Nascent Entrepreneurs: How Many and What They Are Like 278
10.6 Who Becomes a Nascent Entrepreneur? 282
10.7 Nascent Entrepreneur Profile 283
10.8 Nascent Enterprise Profile 290
10.9 The Start-up Process 296
10.10 Outcome Overview 299
10.11 Factors Affecting the Outcome 304
10.12 Conclusion 306
References 308
Chapter 11: Overview and Commentary 309
11.1 Introduction 309
11.2 National Longitudinal Studies of Business Creation 310
11.3 Selected Empirical Patterns 311
11.3.1 Prevalence of Nascent Entrepreneurs 311
11.3.2 Personal Characteristics of Nascent Entrepreneurs 313
11.3.3 Motivation to Start a Nascent Enterprise 315
11.3.4 Nature of the Nascent Enterprises 315
11.3.5 Features of the Firm Creation Process 317
11.4 Start-Up Process Outcomes 321
11.4.1 Factors Associated with Outcomes 324
11.5 The Impact of National Context 329
11.5.1 National Variations in Nascent Enterprises 331
11.5.2 National Variations in New Firms 333
11.5.3 Overall Impact of National Context 334
11.6 Implications for Entrepreneurs and Policy Makers 335
11.6.1 Implications for Entrepreneurs 336
11.6.2 Implications for Policy 337
11.6.3 Encouraging More Nascent Enterprises 337
11.6.4 Enhancing Nascent Venture Transitions to New Firms 340
11.7 Implications for Future Research 341
11.7.1 Conceptualization of the Business Creation Process 341
11.7.2 Enhancing Research Potential Through Representative Samples 342
11.7.3 Enhancing Analysis Potential 345
11.7.4 Final Observations 345
References 346
Authors’ Biographies 349
Index 355