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Nascent Entrepreneurs And The Transition To Entrepreneurship: Why Do People Start New Businesses?

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Author Info

  • STELIOS H. ZANAKIS

    ()
    (Florida International University, Chapman Graduate School of Business, 11200 SW 8 Street, RB 250, Miami, FL 33199, USA)

  • MAIJA RENKO

    (The University of Illinois at Chicago, Department of Managerial Studies, MC 243, Room 2211, University Hall, 601 South Morgan Street, Chicago, Illinois 60607, USA)

  • AMANDA BULLOUGH

    (Thunderbird School of Global Management, 1 Global Place, Voris Bldg B 155, Glendale, AZ 85306, USA)

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    Abstract

    What makes nascent entrepreneurs get their businesses up and running? We answer this by examining in a broad and unifying way: motivation and cognition, knowledge and experience and social support. We apply extensive multivariate analyses to a sample of 338 nascent entrepreneurs from the PSED database. Interestingly, most of our long-term (4½-year) model predictions of startup transition based on early antecedents are more accurate than the short-term ones — a practical strength of these models. Findings indicate that experienced, persistent, confident individuals, motivated mostly by non-financial outcomes, perceiving support from their social contacts and institutional environment, are likely to make the transition to a successful business.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Journal of Developmental Entrepreneurship.

    Volume (Year): 17 (2012)
    Issue (Month): 01 ()
    Pages: 1250001-1-1250001-25

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    Handle: RePEc:wsi:jdexxx:v:17:y:2012:i:01:p:1250001-1-1250001-25

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    Related research

    Keywords: Entrepreneurship; nascent entrepreneurs' mindset; start-up business survival; transition to entrepreneurship; multivariate statistical analysis;

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