The influence of multiple constraints along the venture creation process and on start-up intention in nascent entrepreneurship

Lea Mergemeier, Jessica Moser and Tessa Christina Flatten

Entrepreneurship & Regional Development, 2018, vol. 30, issue 7-8, 848-876

Abstract: This study examines the influence of multiple constraints encountered by nascent entrepreneurs (NEs) in their current phase of the venture creation process – disengaged, still trying or started – and on their start-up intention after disengagement. Drawing on a sample of 1872 German NEs collated in 2014, we extend the literature in the field of nascent entrepreneurship and encountered constraints. By applying the theories of planned behaviour and appraisal as an overarching theoretical foundation, we develop our hypotheses. We find that individuals who have recently abandoned their venture have faced significantly more constraints than other NEs. A deeper analysis reveals that financing difficulties and especially certain personal characteristics impede venture creation. Furthermore, our results show that constraints beyond an NE’s own control are lethal for the continuance of the intention to create a new business. We derive important implications for NEs, entrepreneurship education and policymakers.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:taf:entreg:v:30:y:2018:i:7-8:p:848-876

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DOI: 10.1080/08985626.2018.1471163

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