Handbook of Entrepreneurial Dynamics: The Process of Business Creation

Posted: 4 Nov 2009

See all articles by William B. Gartner

William B. Gartner

Copenhagen Business School; Clemson University - College of Business and Behavioral Science

Paul D. Reynolds

Florida International University, Eugenio Pino & Family Global Entrepreneurship Center

Nancy M Carter

affiliation not provided to SSRN

Kelly G. G Shaver

College of Charleston - School of Business and Economics

Date Written: 2004

Abstract

This handbook reports on the creation andresults of the Panel Study of Entrepreneurial Dynamics (PSED) that wasconducted by the Entrepreneurship Research Consortium (ERC), founded in 1995.The PSED was created to develop a representative portrait of entrepreneurialactivity in the United States.A panel of nascent entrepreneurs wascreated, along with a control group of non-entrepreneurs. Individuals in theprocess of creating new businesses could be studied to generate systematic,reliable, and generalizable data on business creation. The handbook reports on the creation of the ERC, provides detailedinformation about the rationale used in developing the questionnaires for thePSED, and summarizes the theoretical perspectives operationalized, andvariables used, in the PSED. The PSED model has three "transitionpoints": (1) the "conception," (2) the startup process, and (3)"outcomes" of the new firm. These points generate various researchquestions: "What are the tendencies and features of those who startbusinesses?" "How do nascent entrepreneurs go about forming abusiness?" "Why are some successful?" and "Why are some firmslikely to succeed, persist, or die?" The research design had two majorparts: (1) identifying and interviewing nascent entrepreneurs and a controlgroup, and (2) the content of the interviews. Each of the 38 chapters in the handbook was written by a scholar in the ERCwho reports on a key theoretical perspective and variables associated with thattheory. The results showed the great diversity and variety in the process ofbusiness creation. Chapters in Part I, "Demographic Characteristics of theEntrepreneur," discuss the theory, measures, and evidence about thedemographic characteristics of both nascent entrepreneurs and the comparisongroup. Aspects discussed include age and other demographics, income and networth, work and education background, and family background. Part II, "Cognitive Characteristics of the Entrepreneur," surveysthe cognitive characteristics that might determine whether nascententrepreneurs think differently than the comparison group and how types ofnascent entrepreneurs might be distinguished. Topics surveyed include careerreasons, job and life satisfaction, entrepreneurial expectations, innovationand problem-solving style, and social skills. Chapters in Part III, "The Start-up Process," explore the process ofbusiness formation. They describe the kinds and types of businesses, steps andphases of the process, social networks, funding, and business expectations. Part IV, "The Entrepreneurial Environment," explores the context ofthe startup effort and the strategic and technology orientations of theemerging new firms. Three appendixes explain the PSED data collection process, datadocumentation and preparation, use of weights, and how analysis of the datasets can be conducted. (TNM)

Keywords: Entrepreneurial Research Consortium, Startups, Entrepreneurial environment, Longitudinal datasets, Longitudinal research, Firm performance, Firm survival, Panel Study of Entrepreneurial Dynamics (PSED), Individual traits, Research methods, Demographics, Nascent entrepreneurs

Suggested Citation

Gartner, William B. and Reynolds, Paul D. and Carter, Nancy M and Shaver, Kelly G, Handbook of Entrepreneurial Dynamics: The Process of Business Creation (2004). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship. Available at SSRN: https://ssrn.com/abstract=1496117

William B. Gartner (Contact Author)

Copenhagen Business School

Department of Management, Politics and Philosophy
Porcelaenshaven 18B
Frederiksberg C, DK - 2000
Denmark

Clemson University - College of Business and Behavioral Science ( email )

345 Sirrine Hall
Clemson, SC 29634
United States

HOME PAGE: http://www.clemson.edu/cbbs/faculty-staff/profiles/profile.html?userid=GARTNER

Paul D. Reynolds

Florida International University, Eugenio Pino & Family Global Entrepreneurship Center ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

Nancy M Carter

affiliation not provided to SSRN

No Address Available

Kelly G Shaver

College of Charleston - School of Business and Economics ( email )

Charleston, SC
United States

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