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

Posted: 17 Nov 2009  

Gry Agnete Alsos

University of Nordland - Nord University Business School

Lars Kolvereid

Bodø Graduate School of Business

Date Written: 1998

Abstract

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

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

Gry Agnete Alsos (Contact Author)

University of Nordland - Nord University Business School ( email )

Bodø, 8049
Norway

Lars Kolvereid

Bodø Graduate School of Business

Norway

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