The relationship between an entrepreneur's background and performance in a new venture

Jo, Hyungrae; Lee, Jinjoo

doi:10.1016/0166-4972(96)89124-3

Cited by 147 publications

(111 citation statements)

References 26 publications

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“…The insignificant finding for startup is perhaps not surprising given that prior research using this variable provides mixed evidence. Stuart and Abetti (1990) found that prior experience as an owner-manager was the most important determinant of performance in NTBFs, but Jo and Lee (1996) found a negative relation between these two variables. Storey (1994) found no significant relation between experience as an owner and the use of bank finance at start-up.…”

Section: Prior Start-up Experiencementioning

confidence: 97%

“…In a review of 18 studies looking at the determinants of SME growth, Storey (1994) concluded that education and growth are directly related. In high-technology industries, education to degree level has a positive effect on both growth (Van der Ven and Schroeder, 1984;Roberts, 1991;Jo and Lee, 1996;Almus and Nerlinger, 1999;Wilbon, 1999) and firm performance (Van der Ven and Schroeder, 1984;Jo and Lee, 1996). This significantly positive relation, however, does not hold for education beyond degree level (Almus and Nerlinger, 1999;Roberts, 1991).…”

Section: Educational Backgroundmentioning

confidence: 97%

“…Cooper and Bruno (1977), Feeser and Willard (1990), Jo and Lee (1996) and Wilbon (1999) reported a positive relation between prior experience in a similar industrial sector and the performance of the new venture. In contrast, Van der Ven and Schroeder (1984) and Stuart and Abetti (1990) found no relation.…”

Section: Prior Work Experiencementioning

confidence: 99%

See 2 more Smart Citations

What factors determine the use of venture capital? evidence from the Irish software sector

Hogan

Hutson

2005

Venture Capital

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We address the venture capital financing issue from the firm's perspective. Using survey data for 110 new technology-based firms (NTBFs) in the Irish software sector, we assess the extent to which 5 human capital and 3 other variables determine the firm's use of venture capital. Education of the lead founder to degree level is the only significant human capital variable, and it is directly related to the likelihood of being venture capitalbacked. Venture capital-backed firms have significantly higher start-up costs, and their founders are less averse to loss of control than nonventure capital-backed firms. We conclude that the use of venture capital is dictated largely by the willingness of founders to relinquish control.

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Section: Prior Start-up Experiencementioning

confidence: 97%

Section: Educational Backgroundmentioning

confidence: 97%

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What factors determine the use of venture capital? evidence from the Irish software sector

Hogan

Hutson

2005

Venture Capital

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“…Building on these premises, founders' general and specific human capital has been used as a predictor of different entrepreneurial outcomes, such as the likelihood of someone becoming an entrepreneur in the first place (Carroll and Mosakowski, 1987;Davidsson and Honig, 2003;Dimov, 2010;Evans and Leighton, 1989), the firm's growth and performance (Colombo and Grilli, 2005;Gimeno et al, 1997;Jo, 1996), and ultimately the new venture's likelihood of survival (Bruderl et al, 1992;Cooper et al, 1994;Delmar and Shane, 2004). Within the TVC literature, scholars have identified how human capital helps performance in both established (Dimov and Shepherd, 2005;Stuart, 1990) and nascent first-time TVC firms (Walske and Zacharakis, 2009;Zarutskie, 2010).…”

Section: Human Capital In Traditional and Philanthropic Venture Capitmentioning

confidence: 99%

Ingredients Matter: How the Human Capital of Philanthropic and Traditional Venture Capital Differs

2015

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Philanthropic venture capital (PhVC), like traditional venture capital (TVC), provides funding and value added services to a portfolio of entrepreneurial firms. However, TVC differs from PhVC, as the primary goal of TVC is to maximize the economic return of its investments. In contrast, PhVC firms expect their portfolio companies to perform well in terms of both social and economic returns. Using both American and European firms, this paper explores and compares the human capital in PhVC and TVC firm founders. Our results show that there are key differences in both general and specific human capital between these firm types. While both TVC and PhVC firm founders have high levels of commercial experience, TVC firm founders tend to hold degrees in science, engineering, business, and law more frequently than PhVC firm founders. PhVC founders also differ from TVC founders by having greater work experience in the social sector.

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“…Therefore, it is important to learn more about the challenges as well as barriers that entrepreneurs deal with and provide alternative solutions to reduce the burden of challenges. Jo & Lee (1996) investigated the relationship between an entrepreneur's background and performance in a new venture. They perform a deep investigation on how an entrepreneur's background is associated with the performance of a new venture during the early stages, which has been a subject of different studies in entrepreneurship research.…”

Section: Introductionmentioning

confidence: 99%

A survey on how different factors impact entrepreneurs' success in food industry

Abdoli¹,

Tajik²,

Ghasemi³

et al. 2012

MSL

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In this paper, we present an empirical study to detect important factors influencing the success of entrepreneurs who were active in food industry in Tehran, Iran. The proposed study selects a sample of 174 people out of 318 entrepreneurs who were involved in this industry and distributed a questionnaire, which consists of two groups of questions among them. The first group of questions is associated with personal characteristics of the survey people and the second group of questions are related to different financial, infrastructure and supply chain management categories. The study defines entrepreneurs' mental desirability of success in terms of 15 different questions and asks them to provide their insights in terms of five Likert based responses. The results of questions are analyzed using Pearson correlation test and the preliminary results indicate that, among personal characteristics, education and age play important roles on the success of a business plan. The other observation is that the easier entrepreneurs can get loans and financial support, the higher abilities to absorb new customers and the higher chance of success for absorbing new financial resources. Distributions of sales, compared with competing products as well as distribution of after sales service for customers are negatively associated with infrastructures. The rate of success in using new technologies and supply chain management are correlated, which means the better supply chain, the better achievement to information technology.

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The relationship between an entrepreneur's background and performance in a new venture

Cited by 147 publications

References 26 publications

What factors determine the use of venture capital? evidence from the Irish software sector

What factors determine the use of venture capital? evidence from the Irish software sector

Ingredients Matter: How the Human Capital of Philanthropic and Traditional Venture Capital Differs

A survey on how different factors impact entrepreneurs' success in food industry

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