2014
DOI: 10.1111/j.1540-6520.2011.00475.x
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Trustworthiness: A Critical Ingredient for Entrepreneurs Seeking Investors

Abstract: We investigate how an entrepreneur's behaviors during an initial interaction with a business angel can build, damage, or violate trust, and how the investor's level of trust (prompted by the entrepreneur's behavior) can affect his/her decision to make an investment offer. Our empirical analysis shows that entrepreneurs who receive offers from business angels exhibit a larger number of trust–building behaviors during the initial interaction and a smaller number of unintentional trust–damaging behaviors than tho… Show more

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Cited by 160 publications
(132 citation statements)
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References 70 publications
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“…A significant number of works analyse to what extent the entrepreneur's soft-skill qualities affect BAs' judgements, such as the entrepreneur's personality (Becker-Blease and Sohl, 2015;Murnieks et al, 2015), his/her entrepreneurial passion (Mitteness et al, 2012a;Hsu et al, 2014), his/her presentational skills (Clark, 2008) and the trust established between the entrepreneur and the angel investors (Fairchild, 2011;Nofsinger and Wang, 2011;Wallnöfer and Hacklin, 2013;Douglas et al, 2014;Maxwell and Lévesque, 2014).…”
Section: Selection Evaluation and Fundingmentioning
confidence: 99%
“…A significant number of works analyse to what extent the entrepreneur's soft-skill qualities affect BAs' judgements, such as the entrepreneur's personality (Becker-Blease and Sohl, 2015;Murnieks et al, 2015), his/her entrepreneurial passion (Mitteness et al, 2012a;Hsu et al, 2014), his/her presentational skills (Clark, 2008) and the trust established between the entrepreneur and the angel investors (Fairchild, 2011;Nofsinger and Wang, 2011;Wallnöfer and Hacklin, 2013;Douglas et al, 2014;Maxwell and Lévesque, 2014).…”
Section: Selection Evaluation and Fundingmentioning
confidence: 99%
“…Qualitative studies have been able to drill down further, highlighting the importance of the competence, motivation and integrity of the entrepreneur (Lumme et al, 1998) whilst, trust emerges as a significant issue (Harrison et al, 1997;Maxwell et al, 2014). Moreover, it would appear that angels use a non-compensatory approach to deal evaluation.…”
Section: Literature Reviewmentioning
confidence: 99%
“…At this stage, the exchange theory generally meant needs to be referred to entrepreneurship and in particular to relationships and exchanges between investors and entrepreneurs (Fiet, 2001;Navis & Glynn, 2011;Welter, 2012;Cherry, 2014;Maxwell &Lévesque, 2014).…”
Section: Literature Review: the Social Exchange Theorymentioning
confidence: 99%