A founder refers to a person who creates a business, that is, facilitates the emergence of a new business. Indeed, entrepreneurial passion contributes to higher entrepreneurial self-efficacy, which strengthens the intention to start a new venture (Huyghe, Knockaert, & Obschonka, 2016). Personality can also be combined with personal resources and the environment to explain activities and challenges in the creation process of new ventures (Korunka, Frank, Lueger, & Mugler, 2003).
First, the founding teams differ in the level and nature of their experiences, which affects the process of starting a new venture. Finally, founding team members who have prior shared experience are well positioned to handle some of the challenges of starting a new venture. Founders' cognitions refer to the mental operations that underlie the co-construction of potential opportunities for starting a new venture.
However, confidence in one's abilities to successfully perform entrepreneurial tasks is a robust predictor of new venture start-up (Townsend, Busenitz, & Arthurs, 2010). Finally, the founders' cognitions lead to intentions about actions that are crucial to the process of starting a new venture. Regarding specific key activities in the creation process of new ventures, Mueller, Volery, and Von Siemens (2012) found that at start-up founders focused most on exchanging information and opinions (36% of work time) and on.
Specifically, completing a formal plan increases the likelihood of new venture viability (early-stage profitability; Greene & Hopp, 2017) and improves performance in terms of employment growth (Burke, Fraser, & Greene, 2010) and survival (when the plan is formed before talking to customers or undertaking other organizational activities; Shane & Delmar, 2004). Finally, a new venture's strategy can promote innovativeness, which can influence a new venture's performance, even if the nature of the relationship is not as clear as it seems. In theoretical terms, this new venture represents a new unit of analysis that produces results beyond the actions of the individuals involved in the venture.
It appears that the number of new venture creation activities over time is positively associated with new venture creation (Lichtenstein et al., 2007). New venture legitimacy refers to audiences' assessment of the startup and its actions as desirable, acceptable and appropriate. Part of the process of establishing legitimacy for the new venture is to enroll stakeholders in the new venture's endeavor.
When the new venture is shrouded in uncertainty, stakeholder enrollment efforts should focus on the founder and the founding team, not the nature of the potential opportunity (see Haveman et al., 2012). Indeed, future research could examine the direct and indirect (via organizational emergence) impact of new venture strategies on legitimacy. Perhaps the effectiveness of new venture strategy for rapid organizational emergence leads to the involuntary exit of the founder (i.e., in a similar logic to the founder's dilemma; Wasserman, 2008).
Although empirically challenging, we believe it is critically important that future research examine the reciprocal nature of the relationship between new venture initiation and the external environment.
Conclusion
Future research can pick up where we left off—by linking the process of starting a new business with the process of scaling up a new business. We believe that the start-up and escalation stages are too often lumped together (or the differences ignored), which has hindered knowledge creation. Therefore, there are many opportunities to explore how the start-up phase affects the scale-up phase.
Although some activities may remain stable across phases, it is likely that there are a number of changes that indicate the need for transition, a number of changes to implement the transition, and a number of changes in both the inputs and outputs of the transition from the outset. -up to the scale-up. We believe that research at the interface of start-up and growth stages can make important contributions to the entrepreneurship literature and provide an important bridge to the strategic management literature.
ORCID iD
Note
The fallacy of “only the strong survive”: The effects of extrinsic motivation on the persistence decisions of underperforming firms. Understanding when bad moods promote creativity and good ones don't: The role of context and emotional clarity. A temporal analysis of how entrepreneurial goal intentions, positive fantasies and action planning influence starting a new venture and when the effects disappear.
Contrasting interaction effects of improvisational behavior with entrepreneurial self-efficacy on new venture performance and entrepreneur job satisfaction. Testing differential models of cognitive style on entrepreneurial self-efficacy and the new venture creation process. Entrepreneurial personality in the context of start-up resources, environment, and process: A configurational approach.
Gendering the industry and the creation of new ventures: The obligations of women's leagues in the sports industry. Small but attractive: Dimensions of new venture employer attractiveness and the moderating role of applicants' entrepreneurial behaviors. The impact of entrepreneurs' credentials and impression management behaviors on perceptions of new venture legitimacy.
Evaluating the effectiveness of guided preparation for new venture creation and performance: Theory and practice. To start or not to start: Outcome and ability expectations in the decision to start a new venture.
