Resource endowment and opportunity cost effects along the stages of entrepreneurship

Abstract

In this paper, the start-up process is split conceptually into four stages: considering entrepreneurship, intending to start a new business in the next 3 years, nascent entrepreneurship and owning-managing a newly established business. We investigate the determinants of all of these jointly, using a multinomial logit model; it allows for the effects of resources and capabilities to vary across these stages. We employ the Global Entrepreneurship Monitor database for the years 2006–2009, containing 8269 usable observations from respondents drawn from the Lower Layer Super Output Areas in the East Midlands (UK) so that individual observations are linked to space. Our results show that the role of education, experience, and availability of ‘entrepreneurial capital’ in the local neighbourhood varies along the different stages of the entrepreneurial process. In the early stages, the negative (opportunity cost) effect of resources endowment dominates, yet it tends to reverse in the advanced stages, where the positive effect of resources becomes stronger.

Publication DOI: https://doi.org/10.1007/s11187-016-9806-x
Divisions: College of Business and Social Sciences > Aston Business School
College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School > Work & Organisational Psychology
College of Business and Social Sciences > Aston Business School > Centre for Personal Financial Wellbeing
Additional Information: The final publication is available at Springer via http://dx.doi.org/10.1007/s11187-016-9806-x
Uncontrolled Keywords: entrepreneurship, GEM,sStages of entrepreneurship,resources,opportunity cost,entrepreneurial capital,Business, Management and Accounting(all),Economics and Econometrics
Publication ISSN: 1573-0913
Last Modified: 22 Jan 2024 08:09
Date Deposited: 26 Oct 2016 12:35
Full Text Link:
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
http://link.spr ... 1187-016-9806-x (Publisher URL)
PURE Output Type: Article
Published Date: 2017-04-13
Published Online Date: 2016-10-13
Accepted Date: 2016-09-27
Authors: Mickiewicz, Tomasz (ORCID Profile 0000-0001-5261-5662)
Nyakudya, Frederick
Theodorakopoulos, Nicholas (ORCID Profile 0000-0002-2262-0054)
Hart, Mark (ORCID Profile 0000-0002-0402-4128)

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