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To Start or Not to Start: Outcome and Ability Expectations in the Decision To Start a New Venture

Published on Mar 1, 2010in Journal of Business Venturing6.33
· DOI :10.1016/j.jbusvent.2008.05.003
David M. Townsend1
Estimated H-index: 1
(OU: University of Oklahoma),
Lowell W. Busenitz33
Estimated H-index: 33
(OU: University of Oklahoma),
Jonathan D. Arthurs13
Estimated H-index: 13
(WSU: Washington State University)
Abstract
This study seeks to better understand why some individuals decide to start new businesses and others do not, particularly in light of high base rates of failure. In addressing the question of "Why do some individuals choose to start new ventures?" a common perspective is that potential entrepreneurs with high levels of confidence in potential outcomes are likely to start new ventures. Alternatively, it also may be that firm creation decisions are based largely on individual expectations of one's ability. Hypotheses examining these perspectives are tested using a sample of 316 nascent entrepreneurs with the start-up decision tracked longitudinally. The results indicate that confidence in one's ability to perform tasks relevant to entrepreneurship is a robust predictor of start-up while outcome expectancies appear to play a marginal role. Theoretical and practical implications stemming from these results are discussed.
  • References (56)
  • Citations (167)
References56
Newest
#1Philipp Koellinger (EUR: Erasmus University Rotterdam)H-Index: 23
#2Maria Minniti (Babson College)H-Index: 27
Last.Christian Schade (Humboldt University of Berlin)H-Index: 15
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#1Robert A. Lowe (CMU: Carnegie Mellon University)H-Index: 4
#2Arvids A. Ziedonis (UM: University of Michigan)H-Index: 11
#1Mathew L. A. Hayward (CU: University of Colorado Boulder)H-Index: 11
#2Dean A. Shepherd (IU: Indiana University Bloomington)H-Index: 72
Last.Dale Griffin (UBC: University of British Columbia)H-Index: 42
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#1Joseph T. Mahoney (UIUC: University of Illinois at Urbana–Champaign)H-Index: 40
#2Steven C. Michael (UIUC: University of Illinois at Urbana–Champaign)H-Index: 23
#1Hao Zhao (UIC: University of Illinois at Chicago)H-Index: 10
#2Scott E. Seibert (Melbourne Business School)H-Index: 17
Last.Gerald E. Hills (UIC: University of Illinois at Chicago)H-Index: 16
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Cited By167
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#1Valerie Caines (Flinders University)
#2Joanne K. Earl (Macquarie University)H-Index: 11
Last.Prashant Bordia (ANU: Australian National University)H-Index: 44
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#1Yi-Hwa Liou (National Taipei University of Education)H-Index: 5
#2Esther T. Canrinus (University of Agder)H-Index: 8
Last.Alan J. Daly (UCSD: University of California, San Diego)H-Index: 21
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#1Helen Bollaert (Skema Business School)H-Index: 2
#2Gaël LeboeufH-Index: 2
Last.Armin Schwienbacher (Skema Business School)H-Index: 23
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