Exploring the Venture Creation Process: Evidences from Tech and Non-Tech Nascent Entrepreneurs

14 Pages Posted: 24 Mar 2011

See all articles by Jianwen (Jon) Liao

Jianwen (Jon) Liao

Illinois Institute of Technology

Harold Welsch

DePaul University

Date Written: 2003

Abstract

The process of creating new organizations has increasingly become the focus of entrepreneurship research (Gartner, 1990). However, despite the growing literature on this area, there were few studies exploring the venture creation process. Even fewer studies examine venture creation process empirically, with the exceptions of Bhave (1994), Reynolds and Miller (1992), Carter, Gartner and Reynolds (1996) and Delmar and Shane (2002). This study aims to examine various venture creation process attributes across technology-based entrepreneurs (TBEs) and non-technology-based nascent entrepreneurs (N-TBEs). In particular, we address this research question: Do TBEs and N-TBEs differ in their venture creation process in terms of the number of startup activities engaged, gestation duration, association and sequencing patterns of startup activities? The question is examined using the dataset of Panel Study of Entrepreneurial Dynamics (PSED). Overall, we find that TBEs engage more startup activities in planning, legitimacy establishment and resource acquisitions, but not marketing than N-TBEs. TBEs also take longer time to complete gestation process. Additionally, TBEs and N-TBEs share a common set of core activities and with a high degree of similarity in the sequencing patterns of those core activities. What differentiates TBEs from N-TBEs is non-core, peripheral activities. Implications for future research are provided.

Keywords: Entrepreneurship

JEL Classification: M13

Suggested Citation

Liao, Jianwen (Jon) and Welsch, Harold, Exploring the Venture Creation Process: Evidences from Tech and Non-Tech Nascent Entrepreneurs (2003). Babson College, Babson Kauffman Entrepreneurship Research Conference (BKERC), 2002-2006. Available at SSRN: https://ssrn.com/abstract=1783712

Jianwen (Jon) Liao (Contact Author)

Illinois Institute of Technology ( email )

Stuart Graduate School of Business
565 W. Adams St.
Chicago, IL 60661
United States

Harold Welsch

DePaul University ( email )

1 East Jackson Blvd.
Chicago, IL 60604
United States

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