The Impact of Bootstrap Strategies on New Venture Development: A Longitudinal Study
While bootstrap strategies are widely used in entrepreneurial ventures, both scholars and practitioners have presented conflicting views on the relation between these strategies and venture development. This paper empirically investigates the impact of bootstrap strategies used at startup on venture development. For this purpose, we use a longitudinal database comprising data from both questionnaires and financial accounts of 214 new ventures. Findings demonstrate that the impact of bootstrap strategies on venture growth is either non-existent or positive. Specifically, new ventures that use more owner funds, employ more interim personnel, incite customers to pay more quickly and apply for more subsidy programs all exhibit higher growth over time. Moreover, ventures that use the buildings of others create more value compared to ventures that own their buildings, without demonstrating differences in growth. Finally, ventures that use more finance from family and friends do not exhibit differences in growth, but they create consistently less value over time. We discuss the managerial and policy implications of these results and suggest avenues for future research.
|Date of creation:||Jan 2010|
|Contact details of provider:|| Postal: Hoveniersberg 4, B-9000 Gent|
Phone: ++ 32 (0) 9 264 34 61
Fax: ++ 32 (0) 9 264 35 92
Web page: http://www.ugent.be/eb
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:rug:rugwps:10/637. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nathalie Verhaeghe)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.