Essay On Venture Formation

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Formation of a new venture is considered as the central activity of entrepreneurial research (Aldrich, 1999; Gartner, 1985). Gartner (1985) further defined venture as a goal directed, a boundary maintaining activity system which emerge when entrepreneurs take initiative to execute the founding activities. The dynamic process of venture formation involves various activities such as forming a business plan, obtaining resources, developing products, finding financial, government, infrastructural, market research, patenting and legal support (Lebrasseur, 2003; Brush et.al, 2008a;b). Thus, the process of a venture formation has been generally also known as the sequence of activities or events performed by an entrepreneur for firm formation (Liao & Welsch, 2008). Various frameworks have been presented by researchers for exploring activities in the firm formation process. They had identified that the firm formation process is majorly descriptive and conceptual assuming it to be a unitary and linear formed with the combination of activities (Carter et al., 1996). On other side, the life cycle study of firm formation argues that the process goes from diverse phase or stages. Carter et al., (1996) had identified that activities which are executed during the process of setting up a firm have high variation in their sequence and amount of activities Moreover, the empirical studies carried by Carter et.al (1996) and Lichtenstein et.al (2006) identified that execution of more activities lead to venture survival. Carter et al. (1996) also analyzed the occurrence, series, and time frame allied with the key activities and events in firm formation process. In addition to this, Reynolds and Miller (1992) identified significant deviation in activitie... ... middle of paper ... ...nd does not ensure any benefit beyond venture persistence. In other words, there is little evidence of the effect of planning on venture success (Davidsson & Gordon, 2011b), regardless of its place in the process sequence. Therefore, in addition to there not being a common sequence followed by all ventures, it seems there is no specific sequence of venture creation that consistently drives venture success. Finally, from this section we can identified that, even though the literature is extensive in information about the activities executed or performed during the process of venture formation, there is not yet a dynamic method that could provide a general or specific set of activities that may help the entrepreneur while dealing with the actual activities that must be executed from the idea in their head to the consolidation and further evolution of the new venture.
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