1 The role of founders’ tangible resources in founding new ventures
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Jan P. Warhuus
Abstract
This chapter explores our knowledge and lack thereof about the role of founders’ resources in new venture emergence. We focus on early-stages entrepreneurship because it is here that the founders’ resources play the most important role as the venture typically does not yet have assets of interest to investors. We know that is the situation for most founders and because of the raw number of founders, their resource commitment is likely to be sizable and thus important. However, we know little about the actual size or the role these resources play in the process or in acquiring outside resources and financing. This lack of knowledge is in part because early-stage new ventures do not lend themselves well to corporate finance frameworks and partly because the micro-foundational actions of interest are hard to investigate based on the positivist stance that the field of finance and its reviewers and editors typically favor.
Abstract
This chapter explores our knowledge and lack thereof about the role of founders’ resources in new venture emergence. We focus on early-stages entrepreneurship because it is here that the founders’ resources play the most important role as the venture typically does not yet have assets of interest to investors. We know that is the situation for most founders and because of the raw number of founders, their resource commitment is likely to be sizable and thus important. However, we know little about the actual size or the role these resources play in the process or in acquiring outside resources and financing. This lack of knowledge is in part because early-stage new ventures do not lend themselves well to corporate finance frameworks and partly because the micro-foundational actions of interest are hard to investigate based on the positivist stance that the field of finance and its reviewers and editors typically favor.
Chapters in this book
- Frontmatter I
- Acknowledgments V
- Contents VII
- Editor and contributor biographies XI
- Introduction 1
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Part I: The individual level
- Introduction 13
- 1 The role of founders’ tangible resources in founding new ventures 15
- The bootstrapping-bricolage interface 37
- 3 Effectuation and entrepreneurial finance 55
- 4 Portfolio entrepreneurs: The role of risk 75
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Part II: The inner circle
- Introduction 89
- 5 Informal financing of entrepreneurs 91
- 6 Funding entrepreneurs within business groups: An emerging market view 107
- 7 How business incubators and accelerators finance startups 119
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Part III: The wider world
- Introduction 137
- 8 Formal debt as a source of entrepreneurial finance 139
- 9 Microfinance and entrepreneurial finance: A review and future research agenda 153
- 10 Venture capital as a source of entrepreneurial finance 171
- 11 Corporate venture capital: A literature review and research agenda 195
- 12 The role of business angels in the new financial landscape 223
- 13 Government financing of startups 245
- 14 Family offices as startup investors: A synergetic relationship of the old and new economy? 265
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Part IV: Emerging perspectives
- Introduction 291
- 15 A scoping review of most influential entrepreneurial finance studies in developing countries 293
- 16 Conceptualizing gender in entrepreneurial finance: Past trends, current developments and future opportunities 317
- 17 Indigenous entrepreneurial finance: Mapping the landscape with Canadian evidence 335
- 18 Financing entrepreneurs in post-conflict and disaster zones 359
- 19 Ethics and entrepreneurial finance 375
- Conclusion 391
- List of figures 401
- List of tables 403
- Index 405
Chapters in this book
- Frontmatter I
- Acknowledgments V
- Contents VII
- Editor and contributor biographies XI
- Introduction 1
-
Part I: The individual level
- Introduction 13
- 1 The role of founders’ tangible resources in founding new ventures 15
- The bootstrapping-bricolage interface 37
- 3 Effectuation and entrepreneurial finance 55
- 4 Portfolio entrepreneurs: The role of risk 75
-
Part II: The inner circle
- Introduction 89
- 5 Informal financing of entrepreneurs 91
- 6 Funding entrepreneurs within business groups: An emerging market view 107
- 7 How business incubators and accelerators finance startups 119
-
Part III: The wider world
- Introduction 137
- 8 Formal debt as a source of entrepreneurial finance 139
- 9 Microfinance and entrepreneurial finance: A review and future research agenda 153
- 10 Venture capital as a source of entrepreneurial finance 171
- 11 Corporate venture capital: A literature review and research agenda 195
- 12 The role of business angels in the new financial landscape 223
- 13 Government financing of startups 245
- 14 Family offices as startup investors: A synergetic relationship of the old and new economy? 265
-
Part IV: Emerging perspectives
- Introduction 291
- 15 A scoping review of most influential entrepreneurial finance studies in developing countries 293
- 16 Conceptualizing gender in entrepreneurial finance: Past trends, current developments and future opportunities 317
- 17 Indigenous entrepreneurial finance: Mapping the landscape with Canadian evidence 335
- 18 Financing entrepreneurs in post-conflict and disaster zones 359
- 19 Ethics and entrepreneurial finance 375
- Conclusion 391
- List of figures 401
- List of tables 403
- Index 405
