Founding a Business Inspired by Close Entrepreneurial Ties: Does it Matter for Survival?

21 Pages Posted: 8 Sep 2015

See all articles by Jeroen P.J. de Jong

Jeroen P.J. de Jong

Utrecht University - School of Economics

Orietta Marsili

University of Bath

Date Written: September 2015

Abstract

Founding a business may be inspired by close entrepreneurial ties, that is, business‐owning relatives or friends. We analyze if and when such inspiration is associated with post‐entry survival. Drawing on longitudinal data on 942 founders, we find a positive relationship only if founders start by taking over an existing business, or spend considerable time at start‐up. Moreover, the impact of close tie inspiration is negative for founders with prior entrepreneurial experience, revealing a dark side to serial entrepreneurship. Our findings show that new firm survival can be better understood by modeling contingency variables.

Suggested Citation

de Jong, Jeroen P.J. and Marsili, Orietta, Founding a Business Inspired by Close Entrepreneurial Ties: Does it Matter for Survival? (September 2015). Entrepreneurship Theory and Practice, Vol. 39, Issue 5, pp. 1005-1025, 2015. Available at SSRN: https://ssrn.com/abstract=2656443 or http://dx.doi.org/10.1111/etap.12086

Jeroen P.J. De Jong (Contact Author)

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC
Netherlands

Orietta Marsili

University of Bath ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

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