NASCENT ENTREPRENEURS AND THE TRANSITION TO ENTREPRENEURSHIP: WHY DO PEOPLE START NEW BUSINESSES?
Stelios H. Zanakis (),
Maija Renko and
Amanda Bullough Additional contact information Stelios H. Zanakis: Florida International University, Chapman Graduate School of Business, 11200 SW 8 Street, RB 250, Miami, FL 33199, USA
Maija Renko: The University of Illinois at Chicago, Department of Managerial Studies, MC 243, Room 2211, University Hall, 601 South Morgan Street, Chicago, Illinois 60607, USA
Amanda Bullough: Thunderbird School of Global Management, 1 Global Place, Voris Bldg B 155, Glendale, AZ 85306, USA
What makes nascent entrepreneurs get their businesses up and running? We answer this by examining in a broad and unifying way: motivation and cognition, knowledge and experience and social support. We apply extensive multivariate analyses to a sample of 338 nascent entrepreneurs from the PSED database. Interestingly, most of our long-term (4½-year) model predictions of startup transition based on early antecedents are more accurate than the short-term ones — a practical strength of these models. Findings indicate that experienced, persistent, confident individuals, motivated mostly by non-financial outcomes, perceiving support from their social contacts and institutional environment, are likely to make the transition to a successful business.