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How exactly do networking Investments pay off? Analyzing the impact of nascent Entrepreneurs networking Investments on Access to Start-Up Resources

  • Semrau, Thorsten
  • Werner, Arndt
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    It is widely recognized that networks provide access to the resources necessary for founding a business. Up until now, however, the relationship between networking investments and the availability of resources has not been analyzed in depth. Using a sample of 416 nascent entrepreneurs, we address this issue, and provide evidence that networking investments lead to diminishing marginal resource returns in terms of financial, informational, emotional and contact support. Our results also show that resource returns strongly vary with resource type. While emotional support is quite easy to get, many more networking investments are needed to achieve financial support.

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    File URL: http://mpra.ub.uni-muenchen.de/18350/1/MPRA_paper_18350.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18350.

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    Date of creation: 01 Jun 2009
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    Handle: RePEc:pra:mprapa:18350
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    1. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
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    7. Reynolds, Paul D., 2007. "New Firm Creation in the United States A PSED I Overview," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 3(1), pages 1-150, February.
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    9. J. Scott Long & Jeremy Freese, 2006. "Regression Models for Categorical Dependent Variables using Stata, 2nd Edition," Stata Press books, StataCorp LP, edition 2, number long2, November.
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    14. Carter, Nancy M. & Gartner, William B. & Reynolds, Paul D., 1996. "Exploring start-up event sequences," Journal of Business Venturing, Elsevier, vol. 11(3), pages 151-166, May.
    15. Michael N. Mitchell & Xiao Chen, 2005. "Visualizing main effects and interactions for binary logit models," Stata Journal, StataCorp LP, vol. 5(1), pages 64-82, March.
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    17. Monica Diochon & Teresa V. Menzies & Yvon Gasse, 2008. "Exploring The Nature And Impact Of Gestation-Specific Human Capital Among Nascent Entrepreneurs," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 151-165.
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