A proclivity for entrepreneurship: A comparison of entrepreneurs,small business owners,and corporate managers

Despite intensive inquiry, relatively little is known about the entrepreneur, the central figure in entrepreneurship. The question of how an individual who operates his or her own business differs from a corporate manager remains unanswered. In addressing this question, the primary purpose of this study was to investigate the potential of psychological constructs to predict a proclivity for entrepreneurship. The research model includes three classic themes in the literature: achievement motivation, risk-taking propensity, and preference for innovation.A survey of 767 small business owner-managers and corporate managers was assembled from a 20-state region, primarily the southeastern United States. The participants completed a questionnaire composed of the Achievement Scale of the Personality Research Form, the Risk-Taking and Innovation Scales of the Jackson Personality Inventory and questions pertaining to numerous individual and organizational variables. Respondents were first divided into two groups, managers and small business owner-managers. Subsequently, due to the often cited variations in entrepreneurs, the owner-managers were further categorized as either an entrepreneur or small business owner, using the widely cited Carland et al. (1984) theoretical definitions. Entrepreneurs are defined by their goals of profit and growth for their ventures and by their use of strategic planning. Alternatively, small business owners focus on providing family income and view the venture as an extension of their personalities. In this study, both groups of owner-managers were simultaneously compared with managers using hierarchical set multinomial LOGIT regression.The results indicated that the psychological constructs are associated with small business ownership, but with some important caveats. As hypothesized, those labeled entrepreneurs were higher in achievement motivation, risk-taking propensity, and preference for innovation than were both the corporate managers and the small business owners. This profile of the entrepreneur as a driven, creative risk-taker is consistent with much of the classic literature concerning the entrepreneur. Nonetheless, not all of the owner-managers fit this profile. When compared with managers, the small business owners demonstrated only a significantly higher risk-taking propensity. In terms of the constructs studied, the small business owners were more comparable to managers than to entrepreneurs.In addition to theoretical and methodological implications, the results presented here have important implications for small business owner-managers of both types. A major issue is the connection between the owner’s psychological profile and the characteristics of the venture, including performance. It would appear that psychological antecedents are associated with owner goals for the venture. Some owners will be more growth oriented than will others, and performance should be assessed in light of the owner’s aspirations for the venture. Moreover, owners should be aware of their own personality sets, including risk preferences, which may be more or less suited to different venture circumstances, including those with relatively high levels of risk.Planning in small businesses appears to enhance venture performance. Research has demonstrated the connections between psychological factors and planning behaviors in small businesses. Those labeled entrepreneurs in this study have goals of profit and growth, and tend to engage in more planning. An awareness of these psychological preferences and concomitant attention to planning behaviors have the potential to improve the performance of the venture, irrespective of owner aspirations.Venture teaming is becoming more popular among entrepreneurs. Balanced venture teams appear to improve the chances of entrepreneurial success (Timmons 1990), but a common source of conflict among venture team members is inconsistent or ambiguous motives for the new venture. Awareness of venture partners’ psychological predispositions in areas such as risk-taking could be used to identify and reconcile areas of potential conflict, and enhance the planning process in the small firm. In sum, an individual’s awareness of his or her psychological profile provides a number of advantages, not only to existing entrepreneurs, but also to aspiring entrepreneurs who should assess their perceived entrepreneurial opportunities against the backdrop of their psychological proclivity for entrepreneurship.     

Entrepreneurial Dispositions and Goal Orientations: A Comparative Exploration of United States and Russian Entrepreneurs

We refine and extend the study of entrepreneurial dispositions by linking three classic hallmarks of the entrepreneur—achievement motivation, risk–taking propensity, and preference for innovation—to the goal orientations of United States and Russian entrepreneurs. The results suggest that entrepreneurial dispositions vary according to culture and the entrepreneur's primary goal for the venture. The results have important implications for theoretical development linking dispositions and entrepreneurial behavior in different settings and for entrepreneurial education and government policy.     

Perceived progress variability and entrepreneurial effort intensity: The moderating role of venture goal commitment

Drawing on entrepreneurial motivation and goal striving literatures, we examined the dynamic relationship between momentary perceived progress, or an ongoing sense of how one is doing in the pursuit of one's venture goal, and entrepreneurial effort intensity among early-stage entrepreneurs who are based in business incubators. We also examined how perceived progress variability over time predicted entrepreneurial effort intensity, and whether venture goal commitment moderated this link. Experience-sampling data collected from over one hundred early-stage entrepreneurs indicated that perceived progress predicted greater effort intensity. Moreover, perceived progress variability over time negatively predicted entrepreneurial effort intensity, and venture goal commitment attenuated this negative relationship. Theoretical and practical implications of our study to entrepreneurial motivation and goal striving research are discussed.     

A comparative study of values among Chinese and U.S. entrepreneurs: Pragmatic convergence between contrasting cultures

The People's Republic of China is the world's leading Communist power, yet it also represents the largest potential market for international investment and development. In recent years, China has actively pursued private enterprise development, passing its first Private Company Act in 1988, and subsequently encouraging entrepreneurial activities. More than a half-million new ventures in high-growth manufacturing, engineering, and infrastructural development have been independently established in China in little more than six years, and although it would be presumptuous to assume that China is racing toward a free enterprise economy, there are major changes taking place. From an entrepreneurial perspective, these changes are in sharp contrast to the nation's political ideology, and those who are pursuing new ventures constitute a vanguard of individuals at odds with a majority of society.A critical concern is whether China's entrepreneurs pose a threat to those who are entrenched in a political ideology that, by definition, is opposed to free market economics and private enterprise. As Hofstede (1980) has pointed out, characteristics of a people are defined by their prevailing value systems, and research by Bond (1991), Hofstede (1983a, 1983b), Schwartz (1992), and Triandis et al. (1986) has shown that by systematically studying human values we can gain valuable insights about patterns of behavior, motivation, and expectations of cross-cultural boundaries. Consequently, this study was developed to replicate previous value-related studies among Chinese entrepreneurs and nonentrepreneurial managers. A sample of more than 200 executives of state-owned and privately founded industrial companies provided comparable groups for comprehensive interviews. An analogous sample of U.S. entrepreneurs was selected to represent Western values. This extends several previous studies on private enterprise development in China, but, clearly, the convenient and limited sample cannot be construed as representative of a geographically and ethnically diversified country of more than 1.1 billion people. However, it does provide useful insights to differences and similarities in work-related values between Chinese entrepreneurs, managers, and U.S. entrepreneurs as exploratory research.A primary consideration of this study was to enrich the existing research concerning entrepreneurial values, and in the process, question whether Chinese entrepreneurial values are similar to those held by U.S. entrepreneurs. If so, there would be a stronger case for convergence of value systems and commensurate behavior. Similarities would also support arguments by many that entrepreneurial characteristics, such as individualism, achievement motives, and self-deterministic behavior, are universal. This is complicated, however, by a Confucian social philosophy that places little value on these attributes while underscoring the importance of collective behavior, conformist behavior, and referent group loyalty. It is further complicated by two generations of Communist doctrine that has suppressed individual initiative, commercial achievement, and social mobility. Can entrepreneurial values prevail under such adverse conditions? More specifically, can values associated with individualism and self-determination exist in a society that is collectivist and conformist? Several recent studies on entrepreneurial values suggest that apparent contradictory value sets might co-exist (Baum et al. 1993; Chow and Tsang 1994; Erez and Earley 1993; Hofstede and Bond 1988; Holt, Ralston, and Terpstra 1994). Entrepreneurial research has also questioned the concept of universal values and found that, in many instances, cultural-based values are not necessarily malleable (McGrath et al. 1992), values are often contingent on prevailing cultural antecedents (Shenkar and Von Glinow 1994), and discordant or paradoxical values exist within so-called collectivist societies, among presumed cohesive groups, and within well-defined ethnic clusters (McGrath, MacMillan, and Scheinberg 1992; Ohe, Honjo, and MacMillan 1990; Ralston et al. 1994; Triandis et al. 1988).The current study revealed patterns of value orientations among Chinese entrepreneurs, Chinese executives of state-owned or joint venture firms, and U.S. entrepreneurs that in some instances were substantially different, and in other instances quite similar. Contrasts in these patterns suggest an apparent paradox of entrepreneurship in a collectivist society like China, and in particular, a potential confrontation between Chinese entrepreneurs and nonentrepreneurial managers. The results showed that, indeed, the respondent Chinese managers and entrepreneurs differed sharply on many crucial value dimensions, and although the survey was limited to a southern industrial province, there is the possibility that China may be facing an extremely difficult transition period toward a constrained market economy with overtones of a possible ideological backlash. The results revealed many similarities between the respondent Chinese and U.S. entrepreneurs, but also several important differences steeped in Confucian social philosophy. Although there may be some convergence in values, it is more likely that Chinese entrepreneurs are simply pragmatic, and therefore selective in developing behavior that reflects values associated with achievement, independence, freedom of choice, and self-determination. If these results could be interpreted as prevalent beyond our exploratory sample, then pragmatic expectations may be driving private enterprise development in China more than cultural values, but this is difficult to verify. Whatever implications are drawn from this study must also be taken cautiously because there are indications that definitions of certain values, such as achievement or independence, may have substantially different meanings to American and Chinese entrepreneurs. Care was taken to make translations comparable during the field interviews, but Western concepts inherent in the instruments used for value research may have elicited responses or associated meanings among the Chinese that cannot be accurately interpreted.     

政府引导基金下基金经理人薪酬激励机制研究

在风险企业家、创业基金经理人、投资者的三方动态博弈中,信息不对称可能导致基金经理人的道德风险问题。以委托代理理论为基础,研究政府引导基金下如何有效地设计基金经理人的薪酬激励机制;并通过委托代理模型的推导,探讨影响基金经理人激励强度的各种因素,从而为政府引导基金顺利、高效的运作提供承上启下的保障。     

The role of risk-taking in Singapore

This study explores the differences between entrepreneurs and non-entrepreneurs in the city-state of Singapore with regard to the risks involved in the decision to become an entrepreneur. The sample is composed of 30 Chinese entrepreneurs and 44 Singaporean managers and engineers employed by six multinational corporations.Whether or not entrepreneurs are more risk-oriented than managers is not clear from this study but the data from this study demonstrate that entrepreneurs are able to give up job security and take specific kinds of risks related to launching a new venture because they have confidence that they will either succeed or be capable of carrying on a successful career. Whereas job security is a critical variable that holds non-entrepreneurs to the status quo in Singapore, the potential loss of self-respect and self-image, the fear of failure, appears to be a force that drives Chinese entrepreneurs in Singapore to succeed.Although the research for this study began from the widely held premise that risk was a psychological attribute, the research process revealed that risk is more productively seen as a decision-making variable. The research in this study, like previous studies on entrepreneurs and risk, also assumes that choice was the core of risk-taking. It is doubtful, however, that individuals have a generalized risk-propensity, for risk is highly contextual. Risk is most likely to be seen in specific kinds of entrepreneurial decisions such as the decision to become an entrepreneur, the decision to grow a new venture through new product development, international market entry or other strategic options, and decisions related to control issues. Risk should be viewed as part of a complex multivariate process and attention needs to be given in the future to the study of risk identification, risk assessment, formulation of risk strategies, and the management of risk.Risk is an inherent aspect of any opportunity and, consequently, is the darker side of the heart of entrepreneurship. In a Chinese entrepreneurial setting these factors and decisions are part of a complex social process.     

Can prosocial motivation harm entrepreneurs' subjective well-being?

Entrepreneurship research on prosocial motivation has outlined its positive impact on well-being, but still little is known about its power, which may have deleterious personal consequences under certain conditions. In this study, we ask whether prosocial motivation can harm entrepreneurs' subjective well-being when they run a commercial venture. Embedded within a contingency perspective informed by self-determination theory, we build on longitudinal survey data to explain the effect of prosocial motivation on entrepreneurs' overall life satisfaction. Our analysis demonstrates that prosocial motivation has a negative effect on entrepreneurs' life satisfaction due to increased levels of stress. However, our findings show that the negative effect of prosocial motivation dissipates when perceived autonomy at work is high compared to when it is low. Overall, our research raises questions on the role of prosocial motivation for entrepreneurs' subjective well-being and, in particular, discusses its potential “dark side” in the context of commercial entrepreneurship.Executive summaryCan there be a “dark side” in helping others? If so, how can we better understand under what conditions it emerges? Entrepreneurship research conventionally presents prosocial motivation as a positive driver for social venture creation and entrepreneurs' well-being. However, we have little knowledge about the consequences of prosocial motivation when we move outside the social entrepreneurship context. When prosocially motivated entrepreneurs lead a commercial venture, they face the difficult task of balancing the desire to help others with the financial requirements of the business. The challenge of simultaneously accomplishing commercial and prosocial goals can result in a stressful experience that is detrimental to the entrepreneur's well-being. In this study, we ask whether and under what circumstances prosocial motivation can harm entrepreneurs' well-being.Embedded in a contingency perspective informed by self-determination theory, this article expands our knowledge on the effects of prosocial motivation in the context of commercial entrepreneurship. We draw from original longitudinal survey data on 186 entrepreneurs in the United Kingdom to demonstrate that prosocial motivation causes entrepreneurs stress and through that stress has a negative effect on their life satisfaction. We also show that the negative effect of prosocial motivation diminishes when the degree of autonomy entrepreneurs perceive in the pursuit of daily work tasks is high. To explore the uniqueness of the entrepreneurial context, we run a comparative analysis with a sample of 544 employees. This analysis confirms that stress fully mediates the negative relationship between prosocial motivation and subjective well-being, but for employees, this negative effect disappears when their level of intrinsic motivation—the desire to expend effort based on enjoyment of the work itself—is high.Building on our findings, we generate several important contributions. First, we help develop an understanding of the “dark side” of prosocial motivation by demonstrating that under certain circumstances, the desire to help others can be detrimental to entrepreneurs' subjective well-being. Second, we expand knowledge about the link between prosocial motivation and well-being by considering the boundary conditions (perceived autonomy and intrinsic motivation) that influence the dynamics of their relationship. Third, we set the stage for further investigations that aim to clarify the relationship between motivation and perceived autonomy and its effect on personal outcomes across different work domains.The key insight of the study is that prosocial motivation creates a dilemma for entrepreneurs when operating a commercial business such that the desire to help others outside the context of immediate work tasks can harm their personal well-being. We also find that the perception of autonomy is key for commercial entrepreneurs to be able to realize their prosocial motivation without creating stressful situations. Extending our understanding of the conditions that shape the relationship between prosocial motivation and well-being among entrepreneurs would help in developing a more holistic notion of prosocial business venturing, one that includes the role of both commercial and social enterprising activities in contributing to personal and societal well-being.     

Does money matter?: Wealth attainment as the motive for initiating growth-oriented technology ventures

The desire to attain personal wealth has long been regarded as the foremost motive for entrepreneurship. Other goals and values, however, may also contribute to entrepreneurial motivation. Thus, the extent to which money matters relative to other motives is an empirical question. In this study we examine the role of wealth as the motive for the decision to found new ventures. Three focal questions guide our research: 1) does money matter more relative to other decision dimensions in deciding to start a new high-technology venture? 2) does money matter more to entrepreneurs compared to non-entrepreneurs? and 3) does money matter in absolute terms, that is, does a decision model that focuses solely on the motive of wealth attainment parsimoniously predict entrepreneurs' start-up decisions?We conducted in-depth interviews with 51 entrepreneurs and a control group of 28 senior managers who decided not to start ventures (non-entrepreneurs) in the high-technology industry in British Columbia to address our research questions. The motives we examined are wealth attainment and an aggregate of other dimensions identified by entrepreneurs and managers. We considered three components of values: participants' ratings of the importance of various decision dimensions, their rating of the salience of these dimensions, and their satisfaction with prior levels of attainment on those decision dimensions. We assessed beliefs as participants' perceived probability of attaining their desired level of a particular decision dimension in each of three alternatives: the position held at the time the venture decision was made, the venture itself, and the next best career alternative at that time. The data were analyzed to compare entrepreneurs' values and beliefs regarding wealth with an aggregate of other decision dimensions (our relative hypotheses), and with those of non-entrepreneurs (our comparative hypotheses).Our findings do not support the common perception that money is the only, or even the most important, motive for entrepreneurs' decisions to start new ventures. Wealth attainment was significantly less important to entrepreneurs relative to an aggregate of 10 other decision dimensions, and entrepreneurs did not rate wealth as any more important than did non-entrepreneurs. Non-entrepreneurs rated wealth as no more important than other motives. Wealth attainment was also significantly less salient to entrepreneurs' decisions to venture than were other motives. Non-entrepreneurs reported that wealth was significantly more salient to their decision against founding a venture than other dimensions. In fact, non-entrepreneurs rated wealth attainment as significantly more salient to their decision against founding than entrepreneurs rated it for their decision to proceed with starting a high-technology business. A significant number of entrepreneurs started businesses even when they believed that doing so offered them a lower probability of obtaining their most desired level of wealth than did one of their other alternatives.Satisfaction ratings and stated beliefs also dispute classical predictions. Just prior to making the decision to venture, the entrepreneurs in our study were as satisfied with wealth as they were with other decision dimensions. The non-entrepreneurs were actually more satisfied with wealth attainment than with other dimensions. A comparison of the groups revealed no difference in satisfaction with wealth attainment levels. Entrepreneurs did believe that their chances of attaining their desired level of wealth were much greater through founding a new high-technology venture than through their other alternatives. This difference in beliefs, however, was not significantly greater than their optimistic beliefs about chances of attaining desired levels of other dimensions. It was significantly higher compared to the non-entrepreneurs' belief difference measures for wealth. In fact, the entrepreneurs' stated beliefs regarding the chances of attaining their desired levels of all dimensions were higher than those of the non-entrepreneurs, suggesting that entrepreneurs were simply more optimistic at the time of their decision than non-entrepreneurs.Salience findings suggest that these optimistic beliefs about wealth did not motivate the founding decision alone.We can distinguish those people who successfully started ventures by their regard for wealth as a less salient factor, and their beliefs in higher chances of a venture producing monetary and other returns. Other motives, such as innovation, vision, independence, and challenge were more important and much more salient to this sample of entrepreneurs.Our findings have implications for practice, teaching, and research. Venture capitalists who partially base their assessment of entrepreneurs on the extent to which they are motivated to make a great deal of money may benefit from reconsideration of this criterion. We have evidence of one group of high-technology entrepreneurs who achieved success without placing much decision weight on attainment of personal wealth. Nascent entrepreneurs and those who teach entrepreneurship can use this empirical finding to argue two main points: 1) not all entrepreneurs found a business for personal wealth reasons, and 2) one need not be motivated by personal wealth attainment to be a successful entrepreneur. Similarly, theoretical models that assume money is the primary motive for entrepreneurial activity require re-examination. Future research in entrepreneurship should focus less on wealth attainment and more on other motives for the venturing decision. A multiple-attribute decision model may be able to more fully explain venturing decisions.     

Determinants of Venture Performance in Singapore

Based on a survey of Singapore venture capital (VC)-backed firms, we find that environment, resource-based capabilities, strategy, and VC firms' involvement affect the venture performance significantly. The environment is a major constraint within which a firm's strategy is developed. While managers formulate and implement strategies, these strategies do not determine the eventual success directly. The strategy formulated should be complemented by a firm's resource-based capabilities. Firms that do not match their strategy and resources could lead to unfocused and unproductive efforts. Evidence shows that the "fit" between resource-based capabilities and strategy partially affects the venture performance. Our study provides implications for both venture capitalists and entrepreneurs in finding the right partner and in cooperating with each other.     

Personal value systems of men and women entrepreneurs versus managers

Many have suggested that the type of individual who becomes an entrepreneur is psychologically distinguishable from the type of individual who becomes a manager. Moreover, it has been argued that within these occupations men and women are fundamentally different. This paper discusses a study that evaluated the accuracy of these characterizations by comparing the personal value systems of men and women entrepreneurs and managers. This information should prove useful to a variety of audiences.First, individuals exploring career alternatives can evaluate the appropriateness of entrepreneurial and managerial careers for themselves by determining whether or not their own value systems match those of individuals already in these roles. Second, venture capitalists, bank loan officers, and individuals in organizations who are in positions to support women's entrepreneurial and managerial pursuits will be able to determine whether or not women and men in these roles are “made from the same cloth” and thus deserve the same consideration. Third, the current research will also shed some light on the compatibility of the entrepreneurial and managerial roles, a role transition that entrepreneurs make as their businesses mature. Finally, by studying the values of individuals in these two fields an assessment of the basic nature of these individuals can be made.Two hundred fifty-five men and women entrepreneurs and managers rank-ordered 15 terminal (desired end states) and 15 instrumental (methods used by individuals to achieve desired end states) values using a modified version of the Rokeach (1973) Value Survey. The results of the study revealed that individuals' gender had very little influence on their value systems. Women valued the terminal value of equality more than men, and men valued “family security” more than women. In contrast, managers and entrepreneurs had vastly different value systems. Entrepreneurs gave significantly greater weight than managers to the following terminal values (listed from most to least important): self-respect, freedom, a sense of accomplishment, and an exciting life, and the following instrumental values (listed front most to least important): being honest, ambitious, capable, independent, courageous, imaginative, and logical. In contrast, managers gave greater weight than entrepreneurs to the terminal values of (listed from most to least important): true friendship, wisdom, salvation, and pleasure, and the instrumental values of (listed from most to least important): being loving, compassionate, forgiving, helpful, and self-controlled.The results of the present study suggest that entrepreneurs want something different out of life than managers. Whereas the latter prefer to enjoy the pleasures that life has to offer, entrepreneurs want to be free to achieve and actualize their potential. Overall, it appears that knowing whether an individual is an entrepreneur or a manager appears to be a better indicator of his/her values than knowing whether an individual is male or female. These results suggest that men and women who become entrepreneurs or, alternatively, secure jobs in the management profession, are more similar to members of the opposite sex within their profession than they are to members of their own sex in a complementary profession. These findings suggest that customers, subordinates, superiors, bank loan officers, and venture capitalists—or in other words, anyone who is involved with men and women entrepreneurs or managers—should be careful not to categorize them according to traditional sex-role stereotypes. As was demonstrated here, these stereotypes are not applicable across the board. Moreover, previous research has shown that they can result in sex discriminatory decisions.Finally, once a business is well underway, managing the operation becomes central to its success. The results of the present study suggest that this change in role emphasis may not be satisfying to the entrepreneur, because the value system of individuals who are committed to the managerial role is at odds with the value preferences of entrepreneurs. This may help explain why many entrepreneurs become less interested and motivated in their ventures once the entrepreneurial component of their job is overtaken by the management aspect.     

Venture capitalists and serial entrepreneurs

Habitual entrepreneurship is receiving growing attention, much of which has focused on entrepreneurs who have started more than one venture. This paper examines the importance of habitual entrepreneurs to the venture capital industry, with particular emphasis on those who have exited from an initial investment in the venture capitalist's portfolio, termed serial entrepreneurs. As venture capital markets mature, increasing numbers of entrepreneurs are likely to exit from their initial enterprises, creating a pool of entrepreneurs with the potential for embarking on subsequent ventures. Venture capitalists making investments may invest both in entrepreneurs starting new ventures and those who purchase a venture through a management buy-out or buy-in. On this wider basis, the paper develops a classification of types of serial venture. A number of issues are raised for venture capitalists, notably the relative attractiveness of reinvesting in exited entrepreneurs and the policy they adopt in tracking and assessing such individuals.The paper addresses venture capitalists' perspectives on investing in serial entrepreneurs based on a representative sample of 55 UK venture capitalists (a response rate of 48.7%, and a follow-up survey of those who had more extensive experience of serial entrepreneurs (23 respondents). The results of the survey show that despite a strong preference for using an entrepreneur who had played a major role in a previous venture, the extent to which exiting entrepreneurs are funded from their own portfolio again is limited, though there is more extensive use of such individuals in a consultancy capacity. In screening entrepreneurs exiting from previous ventures for subsequent investments, venture capitalists scored attributes relating to commercial awareness, experience in a particular sector, and personal ambition of the entrepreneur most highly.Venture capitalists do make extensive use of serial entrepreneurs who have exited from other venture capitalists' portfolios, primarily to lead management buy-ins. Indications from the survey are that venture capitalists rarely assess entrepreneurs formally at the time of exit and that it is unusual to maintain formal links with entrepreneurs after they have exited. These apparent shortcomings suggest that perhaps investment opportunities are being missed. Those venture capitalists preferring serial entrepreneurs generally had a larger volume of funds under investment and were rather older than those venture capitalists who do not prefer to use serial entrepreneurs, reflecting the possibility that longer established venture capitalists have had more opportunity and experience in relation to second-time entrepreneurs.Investment appraisal factors were subject to a principal components analysis to identify underlying dimensions/relationships between them. With respect to the general investment appraisal factors, five factors were identified. Two factors were related to track record; one of these reflected ownership experience, while the other represented management experience. The third factor was related to personal attributes such as age, knowledge, and family background. The fourth factor represented links to the funding institution, and the final factor (a single variable factor) concerned financial commitment. The principal components analysis for screening factors on management buy-ins produced a single factor comprising all variables. These factors were then subject to a multivariate analysis of variance (MANOVA), with preference for use of a serial entrepreneur as the independent variable. The results suggest that there are significant differences between venture capitalists who prefer serial entrepreneurs and those who do not in respect to their business ownership experience, the length of their entrepreneurial careers, and the number of their previous ventures.The results of the study have implications for practitioners. First, the findings emphasize the importance of not considering previous venture experience in isolation but in the context of other key investment criteria. Second, the lack of strongly greater performance from serial, versus novice, entrepreneurs further emphasizes the care to be taken in assessing experienced entrepreneurs. Third, the relatively low degree of formal and rigorous post-exit assessment and monitoring by venture capitalists suggests that important opportunities to invest in experienced entrepreneurs may be missed.     

Venture Creation Speed and Subsequent Growth: Evidence from South America

Though time is an important dimension of the venture creation process, our understanding of why some entrepreneurs are able to act more quickly than others is limited. Equally, not much is known about the relationship between venture creation speed and the subsequent venture growth. In this paper, we use a resource‐based perspective to provide insights into the factors that quicken or retard venture creation and to explore how speed impacts on subsequent growth. This is important because the topic remains generally underresearched and because even less is understood about venture creation speed in the context of South American economies. Data were collected from face‐to‐face interviews with 647 entrepreneurs in Argentina, Brazil, Chile, and Peru. Using a multivariate regression framework, we find that entrepreneurs make use of their human and social capital resources to shape the speed by which their venture is created. Moreover, their perceptions of unfavorable environmental conditions seem to retard venture creation. Findings also suggest that entrepreneurs who take more time to create a more solid resource base tend to receive better growth outcomes. Implications from the findings are discussed.     

Venture distress and problemistic search among entrepreneurs in Brazilian favelas

When do entrepreneurs in emerging markets seek out help from organizational sponsors? Problemistic search theory suggests that entrepreneurs will seek out sponsors in moments of venture distress. However, this theory was developed in the context of large organizations; it is not clear how it might apply to entrepreneurs in resource-constrained contexts. We use three inductive studies conducted in favelas in Brazil to examine when entrepreneurs seek help. Consistent with problemistic search theory, we find evidence that entrepreneurs seek out help from organizational sponsors in moments of venture distress. We also explore what types of entrepreneurs are most likely to seek help in a situation of venture distress and find that entrepreneurs who are more socially embedded and have more social obligations are more likely to take up sponsorship services, leading to important heterogeneity in our results on take-up. We find that women, more mature ventures, and middle-aged entrepreneurs are all more likely to engage in problemistic search. We contribute to a more contextualized theory of problemistic search for small entrepreneurs in emerging markets. We also provide important theoretical and practical insights about the demand-side of organizational sponsorship.     

Applying Person‐Environment Fit Theory to Identify Personality Differences between Prospective Social and Commercial Entrepreneurs: An Explorative Study

Research has started to investigate personality traits of social entrepreneurs because such traits in commercial entrepreneurs have been found to affect new venture creation/success. In this exploratory study, we apply the person‐environment fit theory and analyze specific social entrepreneurial personality dimensions (i.e., altruism, empathic concern, personal distress, compassion), and classical entrepreneurial personality dimensions (i.e., need for achievement (nAch), entrepreneurial self‐efficacy (ESE), general self‐efficacy, risk‐taking propensity) to identify differences between prospective social and commercial entrepreneurs. Using a sample of 85 prospective entrepreneurs, results show that prospective social entrepreneurs differ from prospective commercial entrepreneurs in the personality dimensions of personal distress, nAch, ESE, and risk‐taking propensity.     

Social ties and venture creation by returnee entrepreneurs

Recent years have witnessed the return of individuals of Indian or Chinese origin from developed markets to their home countries to start new ventures. Returnee Entrepreneurs (REs) facilitate both direct technology transfer and indirect technology spillovers to local firms, thus contributing to the technological development of emerging economies. Much previous work is based on the integration of ethnic entrepreneurs in their host countries or business activities of transnational entrepreneurs that traverse their host and home countries. This study explores the role of social ties in venture creation by REs. Based on twenty case studies in India, the findings show that (1) local ties are indispensable for venture creation, and (2) the heterogeneity in the way REs leverage social ties across the host and home countries is contingent on the location of their intention to start up and generation of idea for their venture. The implications of these findings are discussed.     

Beyond Achievement: Entrepreneurship as Extreme Experience

How do entrepreneurs experience entrepreneurship, and what are the implications? The cognitive and emotional experiences of the entrepreneur as he/she performs the tasks associated with venture creation and high growth have received limited attention from researchers. The entrepreneurial context can be characterized in terms of peaks and valleys, or periods of relatively high pressure, stress, uncertainty, and ambiguity and periods of relative stability and predictability. Three inter-related psychological variables are investigated to determine their applicability in an entrepreneurial context: peak performance, peak experience, and flow. Results are reported of a series of in-depth, structured interviews conducted with two samples of entrepreneurs. Both qualitative and quantitative evidence is provided of the relevance of all three variables to entrepreneurs, with the highest scores for each variable demonstrated by entrepreneurs in high growth ventures. A number of implications are drawn for ongoing research and entrepreneurial practice, most notably in the area of entrepreneurial motivation. The findings suggest that entrepreneurship be approached as a vehicle for optimal human experiencing.     

Entrepreneurs as prime targets: Insights from Mexican ventures on the link between venture visibility and crime of varying severity

This study addresses entrepreneurs as targets of crime. Leveraging insights from strategic responses to institutional pressures as the main theoretical frame, coupled with supporting insights from routine activities theory and interview data from 14 entrepreneurs who have been victims of crime, we introduce entrepreneur-led ventures becoming targets of crime via their engagement in routine activities that increase venture visibility. We then conceptualize that crime severity pushes entrepreneurs toward venture visibility-reduction responses, such as truncating growth, relocating, or discontinuing the venture. Survey data from 87,486 legally registered entrepreneur-led ventures in Mexico provide strong support for the relationships in our theoretical model. We find that as routine venture activities increase, entrepreneurs encounter crime of increasing severity, with the routine venture activity of making transactions at a bank serving as the strongest attractor of crime. Building on these findings, we observe an indirect effect through crime severity such that the choice to relocate the venture is the most likely response to being targeted by criminals. Our results advance the literature at the intersection of crime and entrepreneurship, especially in developing economies, and offers venture visibility as a mechanism that shapes both criminals' targeting of ventures and entrepreneurs' attempts to reduce being targeted.     

Work hard or play hard: the effect of leisure crafting on opportunity recognition and venture performance

Given the challenges inherent in starting companies, investigation of how entrepreneurs use their time at work to develop ventures has received prominent attention by scholars. We argue that how entrepreneurs use their leisure time has not received commensurate scrutiny. Leisure crafting, the proactive pursuit of particular leisure activities for specific goals, could play an important role in the entrepreneurial process. Herein, we develop and test a theoretical model describing how leisure crafting among entrepreneurs affects opportunity recognition and venture performance. Using three studies we provide strong evidence that leisure crafting positively relates to opportunity recognition and venture performance, which is mediated by thriving at work and moderated by work task focus. These findings provide generative insights into the nature of leisure and the micro-processes that drive entrepreneurship.     

Expectancy theory and nascent entrepreneurship

Motivation is an important factor that distinguishes those nascent entrepreneurs who make progress towards an operating venture from those who do not. Based on Vroom??s (Work and motivation, 1964) expectancy theory, we predict that startup-specific instrumentality, valence and expectancy are key components of entrepreneurial motivation and closely related to those intentions, efforts, and behaviors that will eventually lead to operating a firm. Hypotheses are tested using data from the first Panel Study of Entrepreneurial Dynamics I. Our results show that valence is a multidimensional construct, and that various types of valence are related to different intent and behavioral outcomes. All types of valence, instrumentality, and expectancy are related to a nascent entrepreneur??s intended effort level in a cross-section of data, and over time, intended effort is positively related to operative firm status. Overall, our results suggest that expectancy theory holds promise for research on nascent entrepreneurs?? motivation.     

The entrepreneur's mode of entry: Business takeover or new venture start?

We extend the well-known occupational choice model of entrepreneurship by analyzing the mode of entry. Individuals can become entrepreneurs by taking over established businesses or starting up new ventures from scratch. We argue that the new venture creation mode is associated with higher levels of schooling whereas managerial experience, new venture start-up capital requirements and industry level risk promote the takeover mode. A sample of data on entrepreneurs from The Netherlands provides broad support for these hypotheses, and also bears out a prediction that entrepreneurs whose parents run a family firm tend to invest the least in schooling. We go on to discuss the implications for researchers, entrepreneurs and public policy makers.