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Nascent Entrepreneurs And The Transition To Entrepreneurship: Why Do People Start New Businesses?

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  • STELIOS H. ZANAKIS

    (Florida International University, Chapman Graduate School of Business, 11200 SW 8 Street, RB 250, Miami, FL 33199, USA)

  • MAIJA RENKO

    (The University of Illinois at Chicago, Department of Managerial Studies, MC 243, Room 2211, University Hall, 601 South Morgan Street, Chicago, Illinois 60607, USA)

  • AMANDA BULLOUGH

    (Thunderbird School of Global Management, 1 Global Place, Voris Bldg B 155, Glendale, AZ 85306, USA)

Abstract

What makes nascent entrepreneurs get their businesses up and running? We answer this by examining in a broad and unifying way: motivation and cognition, knowledge and experience and social support. We apply extensive multivariate analyses to a sample of 338 nascent entrepreneurs from the PSED database. Interestingly, most of our long-term (4½-year) model predictions of startup transition based on early antecedents are more accurate than the short-term ones — a practical strength of these models. Findings indicate that experienced, persistent, confident individuals, motivated mostly by non-financial outcomes, perceiving support from their social contacts and institutional environment, are likely to make the transition to a successful business.

Suggested Citation

  • Stelios H. Zanakis & Maija Renko & Amanda Bullough, 2012. "Nascent Entrepreneurs And The Transition To Entrepreneurship: Why Do People Start New Businesses?," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-25.
    • Handle: RePEc:wsi:jdexxx:v:17:y:2012:i:01:n:s108494671250001x
    DOI: 10.1142/S108494671250001X
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    References listed on IDEAS

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    1. Paul Davidson Reynolds, 2007. "Entrepreneurship in The United States," International Studies in Entrepreneurship, Springer, number 978-0-387-45671-3, November.
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    Cited by:

    1. Renko, Maija & Freeman, Michael J., 2017. "How motivation matters: Conceptual alignment of individual and opportunity as a predictor of starting up," Journal of Business Venturing Insights, Elsevier, vol. 8(C), pages 56-63.
    2. Virginia Barba-Sánchez & Carlos Atienza-Sahuquillo, 2017. "Entrepreneurial motivation and self-employment: evidence from expectancy theory," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1097-1115, December.
    3. Mmakgabo Justice Malebana, 2014. "Entrepreneurial Intentions and Entrepreneurial Motivation of South African Rural University Students," Journal of Economics and Behavioral Studies, AMH International, vol. 6(9), pages 709-726.
    4. Christian Linder & Michael Nippa, 2019. "Jumping in at the deep end! The role of motivational forces in starting a new venture," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1363-1391, December.
    5. Lukman Raimi & Mirela Panait & Iza Gigauri & Simona Andreea Apostu, 2023. "Thematic Review of Motivational Factors, Types of Uncertainty, and Entrepreneurship Strategies of Transitional Entrepreneurship among Ethnic Minorities, Immigrants, and Women Entrepreneurs," JRFM, MDPI, vol. 16(2), pages 1-24, January.
    6. Vladimir Menshikov & Givi Bedianashvili & Givi Bedianashvili & Oksana Ruža & Irena Kokina, 2021. "Mobility in the context of entrepreneurial potential of students under the conditions of the COVID-19 pandemic (Latvia, Georgia)," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(1), pages 574-589, September.
    7. Pablo Ruiz-Palomino & Ricardo Martínez-Cañas, 2021. "From opportunity recognition to the start-up phase: the moderating role of family and friends-based entrepreneurial social networks," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1159-1182, September.
    8. Yue Bao & Qi Miao & Ying Liu & Daniel Garst, 2016. "Human Capital, Perceived Domestic Institutional Quality And Entrepreneurship Among Highly Skilled Chinese Returnees," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-21, March.
    9. Shirokova, Galina & Osiyevskyy, Oleksiy & Bogatyreva, Karina, 2016. "Exploring the intention–behavior link in student entrepreneurship: Moderating effects of individual and environmental characteristics," European Management Journal, Elsevier, vol. 34(4), pages 386-399.
    10. Patricia Jardim Da Palma & Miguel Pereira Lopes & Telmo Ferreira Alves, 2018. "Entrepreneurship as a Calling: A Pilot Study with Aspiring Entrepreneurs," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 27(2), pages 277-300, September.
    11. Karina Bogatyreva & Galina Shirokova, 2017. "From Entrepreneurial Aspirations to Founding a Business: The Case of Russian Students," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(3), pages 25-36.

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