New Venture Creation: How Start-Ups Grow?

AD-minister, Vol. 30, pp. 9-29, Jan. 2017

22 Pages Posted: 14 Mar 2017

See all articles by Aidin Salamzadeh

Aidin Salamzadeh

University of Tehran - Faculty of Entrepreneurship

David A. Kirby

University of Surrey - School of Management

Date Written: January 2017

Abstract

Start-ups, often seen as sources of innovation and change, are prone to failure and accordingly they are attracting considerable attention not least from policy makers and Government officials. However, the various new venture creation studies that have emerged since the early 1980s lack cohesiveness, and the domain remains controversial. This article not only exposes the limitations of the existing body of understanding on the topic but attempts to develop a more comprehensive and comprehendible framework for start up (new venture) creation. To do so it uses the frameworks proposed by Whetten, and March and Smith to develop 11 propositions. The resultant model suggests that the creation of a start up involves the identification of an idea or opportunity by an entrepreneur who subsequently organizes a series of activities, mobilizes resources and creates competence using his/her networks in an environment in order to create value. It sheds light on the start-up (new venture) creation process and has relevance for entrepreneurs, policy makers and researchers.

Keywords: New Venture Creation; Start-Up; SME; Growth; Ideation; Opportunity

JEL Classification: L26; M13

Suggested Citation

Salamzadeh, Aidin and Kirby, David A., New Venture Creation: How Start-Ups Grow? (January 2017). AD-minister, Vol. 30, pp. 9-29, Jan. 2017. Available at SSRN: https://ssrn.com/abstract=2930072

Aidin Salamzadeh (Contact Author)

University of Tehran - Faculty of Entrepreneurship ( email )

Tehran
Iran

David A. Kirby

University of Surrey - School of Management ( email )

Guildford, Surrey GU2 7XH
United Kingdom

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