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Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities


  • L. SINGH



Although entrepreneurship scholars highlight bootstrapping as an important resource acquisition approach to respond to the inherent resource constraints which nascent ventures face, little is known about what causes nascent ventures to engage in bootstrapping. Theory highlights the environment as an important determinant of bootstrapping activity. Analyzing bootstrapping behavior of 298 nascent ventures, we find that beyond environmental factors, individual characteristics of the nascent entrepreneurs and factors relating to the embeddedness of the entrepreneurs in the environment determine their venture’s bootstrapping behavior. In a more fine-grained analysis we gain insights how theses antecedents shape the use of particular bootstrap strategies. Findings contribute to our understanding of how early resource management approaches are developed in nascent ventures.

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  • D. Grichnick & J. Brinckman & L. Singh & S. Manigart, 2013. "Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/829, Ghent University, Faculty of Economics and Business Administration.
  • Handle: RePEc:rug:rugwps:13/829

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    More about this item


    Bootstrapping; Human capital; Social capital; Environmental munificence; Nascent ventures;

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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