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Sorting Nascent Growth Ventures from Nascent Lifestyle Ventures at the Intentions Stage
Abstract   Open access   Peer reviewed

Sorting Nascent Growth Ventures from Nascent Lifestyle Ventures at the Intentions Stage

Evan J Douglas, Jason R Fitzsimmons and B L Bendell
Frontiers of Entrepreneurship Research
Babson College Entrepreneurship Research Conference (BCERC), 2011 (New York, United States, 08-Jun-2011–11-Jun-2011)
2011
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Abstract

Business and Management Entrepreneurship ventures growth
Shane (2009) argues that support of venture startups using public funds is often not justified since most new firms are independence-oriented rather than growth-oriented and do not subsequently repay societal investment via employment growth or income tax revenues. It is important to predict at an early stage whether the entrepreneur's cognitive makeup is such that he/she will prefer to pursue a growth-oriented or an independence-oriented opportunity. In this paper we identify human capital and cognitive antecedents of growth-oriented entrepreneurial intentions versus independence-oriented entrepreneurial intentions, and argue that simple tests could be used to determine which nascent entrepreneurs are more likely to repay society's investment in their start-up.

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