Narrow Results

Theoretical models of entrepreneurship suggest that an individual's intention to start an enterprise is a strong predictor of eventual entrepreneurial action. Less understood are factors that influence the likelihood of entrepreneurial intentions and nascent behavior. In this study, we develop and test several hypotheses about how social network ties and self-efficacy affect entrepreneurial intentions and nascent behavior. We found that a personal network of supportive strong ties coupled with high entrepreneurial self-efficacy increases the likelihood of entrepreneurial intentions and nascent behavior. A personal network of weak ties with practical business knowledge and experience also increases the likelihood of entrepreneurial nascent behavior but not entrepreneurial intentions. In contrast, a personal network of strong ties with practical business knowledge and experience has little effect on either intentions or nascent behavior and may, in fact, suppress both. The contribution of this study to nascent entrepreneurship research and implications for future research are discussed.

This study examines the causes and dynamics in the creation of business ventures by minority nascent entrepreneurs. Minority business enterprises are an important source of job creation and innovation in the US economy, as well as economic development engines in their respective communities. However, little is understood about the unique motivations, business strategies and plans in the early stage of their venture formation. This paper utilizes the Panel Study of Entrepreneurial Dynamics (PSED) dataset in investigating black and Hispanic entrepreneurial entry as compared to white nascent entrepreneurs around three important dimensions: motivation, business strategy, and community resources. It is found that blacks are highly driven by a range of motivational factors while Hispanics value intergenerational inheritance and role models in business ownership. Both groups heavily focus on a niche market strategy by lowering prices, serving markets missed by others and locating close to customers. Contrary to expectation, their perceptions of community resources are not more favorable than whites. Public policy implications are discussed.