Novice, Serial and Portfolio Entrepreneur Behaviour and Contributions

Westhead, Paul; Ucbasaran, Deniz; Wright, Mike; Binks, Martin

doi:10.1007/s11187-003-6461-9

Cited by 156 publications

(124 citation statements)

References 39 publications

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“…Using data from Great Britain (in some cases, Scotland only), Westhead, Wright, and coauthors compare novice entrepreneurs with multiple-firm founders along many dimensions such as demographic characteristics, background and motivations, skills and knowledge, attitudes to entrepreneurship, organizational capabilities, primary industry activity, geographic location, and business performance (Birley and Westhead, 1994;Wright, 1998a, 1998b;Westhead et al, 2005aWesthead et al, , 2005bWesthead et al, , 2005cWright et al 1997aWright et al , 1997b. 3 Similar comparisons have also been made based on data from other countries.…”

Section: Entrepreneurial Experience and Experienced Entrepreneursmentioning

confidence: 99%

The advantage of experienced start-up founders in venture capital acquisition: evidence from serial entrepreneurs

Zhang

2009

Small Bus Econ

137

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Existing literature suggests that entrepreneurs with prior firm-founding experience have more skills and social connections than novice entrepreneurs. Such skills and social connections could give experienced founders some advantage in the process of raising venture capital. This paper uses a large database of venture-backed companies and their founders to examine experienced founders' access to venture capital. Compared to novice entrepreneurs, entrepreneurs with venture-backed founding experience tend to raise more venture capital at an early round of financing and tend to complete the early round much more quickly. In contrast, experienced founders whose earlier firms were not venture-backed do not show a similar advantage over novice entrepreneurs, suggesting the importance of connections with venture capitalists in the early stage of venture capital financing. However, when the analysis also takes into account later rounds of financing, all entrepreneurs with prior founding experience appear to raise more venture capital. This implies that skills acquired from any previous founding experience can make an entrepreneur perform better and in turn attract more venture capital.JEL Classification: M13, G24

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Section: Entrepreneurial Experience and Experienced Entrepreneursmentioning

confidence: 99%

The advantage of experienced start-up founders in venture capital acquisition: evidence from serial entrepreneurs

Zhang

2009

Small Bus Econ

137

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“…In this vision, the success and failure of a firm does not represent the success and failure of its entrepreneur (Sarasvathy & Menon, 2003), since new ventures independently by their success or failure represent always a successful instrument of learning (Westhead, Ucbasaran, Wright & Binks, 2005).…”

Section: A Focus On Individual Entrepreneurmentioning

confidence: 99%

Serial Entrepreneurship and Born-Global New Ventures - A Case Study

2008

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Based on a longitudinal case study, we aim to understand how serial entrepreneurs can foster the development of born-global ventures. We consider a born-global start-up as the final stage of the learning process for a serial entrepreneur, advancing propositions regarding the importance of prior entrepreneurial experience for bornglobal venture creation and growth. We suggest that the serial entrepreneur's previous entrepreneurial experiences could substitute for the lack of knowledge, opportunity recognition and social networks of a bornglobal start-up. Thus, we recognize the necessity of a shift in the unit of analysis, from born-global start-up to a global serial entrepreneur, suggesting to follow a dynamic approach when the born-global start-up issue is discussed.

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“…Experienced entrepreneurs may already have business contacts that help them to discover opportunities without actively searching (Westhead et al [2005]). The result would be more effective information search behavior.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Once Bitten, Twice Shy? The Performance of Entrepreneurial Restarts

Metzger

2006

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp06083.pdf Non-Technical SummaryNew firm formation is the driving force behind structural changes in the economy. In particular, the creation of new jobs is an important macroeconomic issue which is related with entrepreneurial activities. It has often been shown that new firms make substantial contributions to the labor market. Firm growth is closely connected with this job-providing function. In studies that deal with the topic of growth, firm characteristics such as size and age are the most frequently considered performance factors. But these characteristics are not set in stone; rather they are outcomes of management decisions. Managers -in small businesses usually the entrepreneurs themselves -play the dominant role in a firm's appearance and its development. So their entrepreneurial ability is the key factor behind the firm's success. To some basic degree their managerial ability is surely given by nature. However, it also depends to a large extent on training. The experience that an entrepreneur gathers while working as a manager can be seen as a kind of training. Thus, entrepreneurial experience should be relevant for firm performance.The purpose of this paper is to test four hypotheses. The first hypothesis is related to the effect of general entrepreneurial experience on firm growth derived from both human capital and insider/outsider-theory (H1). The next two hypotheses are linked with the effects of specific entrepreneurial experience namely business failure experience. Applying the theory of behaviorism and the principal/agent-theory suggests that experience of failure should have a negative effect on firm performance (H2a). On the other hand, both the general validity of the human capital theory and selection mechanisms suggests positive effects (H2b). Lastly, the third hypothesis is based on time effects and proposes that the effects of experience disappear with firm age (H3).To show the influence of entrepreneurial experience on firm growth the employment growth rate as the dependent variable is fitted to a set of independent growth determinants. In order to control for firm survival the Heckman selection correction is applied. Additionally, a semiparametric specification is used to relax presumptions of the parametric model.The results of the analyses partly confirm human capital theory: entrepreneurial experience has a positive impact on firm performance -p...

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Novice, Serial and Portfolio Entrepreneur Behaviour and Contributions

Cited by 156 publications

References 39 publications

The advantage of experienced start-up founders in venture capital acquisition: evidence from serial entrepreneurs

The advantage of experienced start-up founders in venture capital acquisition: evidence from serial entrepreneurs

Serial Entrepreneurship and Born-Global New Ventures - A Case Study

Once Bitten, Twice Shy? The Performance of Entrepreneurial Restarts

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