The Business Gestation Process of Novice, Serial, and Parallel Business Founders

Gry Agnete Alsos

affiliation not provided to SSRN

Lars Kolvereid

Bodø Graduate School of Business


University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship

The process of new business gestation, or theplanning activities that nascent entrepreneurs carry out in the startupprocess, is explored. The goal is to examine the effect of previous experiencefounding a company on the process of planning a new business and theprobability that a new business plan is actually implemented. Three types of entrepreneurs are considered: novice founders, serialfounders (previous owners of businesses), and parallel founders (those whofound a new business while already owning one). A sample of almost 10,000Norwegian adults taken in 1996 was examined. For the 160 nascent entrepreneursidentified, business planning was tracked for one year. Also examined were thevarious entrepreneurial activities carried out during the gestation process:(1) business planning, (2) new firm financing, and (3) interaction with thelarger business environment. Findings indicate that parallel founders carry out more startup activitiesthan other founders; serial founders carry out more earlier-phase activitiesthan parallel founders; serial founders are less likely to implement a businessthan parallel or novice founders; novice founders begin the process similarlyto others but take longer in the first-phase process; and novice founders aresignificantly less likely than parallel founders to start thecompany.(TNM)

Keywords: Firm performance, Individual traits, Startups, Nascent entrepreneurs, Behavior (individual), Financing, Strategic planning, Entrepreneurial environment

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Date posted: November 17, 2009  

Suggested Citation

Alsos, Gry Agnete and Kolvereid, Lars, The Business Gestation Process of Novice, Serial, and Parallel Business Founders (1998). Entrepreneurship Theory and Practice, Vol. 22, Issue 4, p. 101-114 1998. Available at SSRN: https://ssrn.com/abstract=1507561

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Gry Agnete Alsos (Contact Author)
affiliation not provided to SSRN
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Lars Kolvereid
Bodø Graduate School of Business
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