The Intreversial Experience Of Entrepreneurship
analytical Essay
2014 words
Founders are at the core of new ventures. Previous research has examined the role of the entrepreneur (Cooper and Dunkelberg, 1986; Sandberg and Hoffer, 1987) but there are gaps in the literature that do not address the modern shifts in the environment. The characteristics that influence an entrepreneur have also been studied widely (Roberts, 1989; Vivarelli, 2004; Hessels, Gelderon, and Thurik, 2008). But as environments change, more questions emerge about the entrepreneur and his or her new venture. One of these questions is the role of entrepreneurial experience of new ventures, a concept that has been studied before in a variety of ways (Dyke, Fischer, and Reuber, 1992; Stuart and Abetti, 1990; Haynes, 2003). Therefore, the way we study entrepreneurship needs to be updated to represent the changes in the environment. With the environmental shift to Internet based ventures, the question arises if previous research that examined the role of experience of the entrepreneur is out of date or applicable to this new type of venture. Put simply, although entrepreneurship has been widely studied, little research has focused on entrepreneurs of new, online ventures. Therefore it will be the purpose of this paper to analyze the relationship between the experience of the entrepreneur and new Internet based ventures.
Previous research has examined the economic impact of entrepreneurship (Acs, 2006). Acs found that rising levels of economic development become more evident as more of the population became involved in opportunity entrepreneurship and as more people left necessity entrepreneurship. But as the environment changes, there is a gap in the literature related to the impact of new online ventures. To understand why this matters, ...
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...nce in new online ventures. A review of the relevant previous literature is limited and does not provide insight into this question. Because this is a new field of study, research has asked if the Internet makes a difference when observing new technology-based firms (Colombo and Delmastro, 2001). Dheeriya (2009) focused on the difference between “brick and mortar” entrepreneurs and entrepreneurs who conduct business solely online. This difference will be a key component of this study as a framework for the influence of experience is measured. Because starting a new online venture depends heavily on the entrepreneur’s knowledge and skills, it is assumed that previous experience will impact the performance of the venture. Therefore, the research question for this paper is what is the relationship between founder experience and firm performance in new, online ventures?
In this essay, the author
- Analyzes the relationship between the experience of the entrepreneur and new internet based ventures.
- Argues that there is a gap in the literature related to the impact of new online ventures. the internet is responsible for 2.9 percent of global gdp.
- Explains that an entrepreneur is at the core of the success or failure of a new venture.
- Explains that there are no generally agreed upon specific predictors of success, but the entrepreneur is a focal point of study.
- Explains that roure and maidique examined the relationship between founders' track records, characteristics of founding team, target market, technological strategy, deal structure, and firm performance.
- Analyzes how roure and keeley developed a framework of predictors of success in technology based ventures. they found no support for the importance of individual characteristics on the firm’s success.
- Analyzes how swiercz and lydon analyzed the role the entrepreneurial leader plays in the success of the new business venture in attempts to diminish the high failure rate of startups.
- Explains that vesper (1990) described the entrepreneur as ultimately responsible to determine whether the venture goes or not and leads it down a path of success or failure.
- Explains that it is valuable to explore the characteristics that influence the entrepreneur that eventually lead him or her to start a new venture.
- Analyzes the literature on entrepreneurs' experience correlating to the performance of a new venture. reuber, dyke, and fischer found no consistent, direct relationship between the founder and the success of the firm.
- Explains that venture capitalists' choice to invest in a certain venture may be predicated on the experience of the entrepreneur as an indicator of firm’s future performance.
- Explains that technical entrepreneurs have been studied from a variety of methods with varying results. as the environment shifted, the critical skills and experience required of entrepreneurs has changed and the focus on their capabilities needs to adapt.
- Explains that technical entrepreneurs and technology-based ventures require different skill-sets than a "brick and mortar" entrepreneur. cooper described the incubator organization in which the founder was previously working.
- Explains that other research measured the impact of the environment, strategy decisions, type of organization, and the entrepreneur’s experience in relation to the performance of new technology-based ventures.
- Argues that there is no generally agreed upon definition of an internet company. zarzecki defines an online venture as a company whose majority or significant part of revenues is generated by the internet.
- Explains the importance of entrepreneurs' experience in new online ventures, stating that a review of previous literature does not provide insight into this question.
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