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Harvard Business Review entrepreneur's handbook : everything you need to launch and grow your new business
\"The one primer you need to develop your entrepreneurial skills. Whether you're imagining your new business to be the next big thing in Silicon Valley, a pivotal B2B provider, or an anchor in your local community, the HBR Entrepreneur's Handbook is your essential resource for getting your company off the ground. Starting an independent new business is rife with both opportunity and risk. And as an entrepreneur, you're the one in charge: your actions can make or break your business. You need to know the tried-and-true fundamentals--from writing a business plan to getting your first loan. You also need to know the latest thinking on how to create an irresistible pitch deck, mitigate risk through experimentation, and develop unique opportunities through business model innovation. The HBR Entrepreneur's Handbook addresses these challenges and more with practical advice and wisdom from Harvard Business Review's archive. Keep this comprehensive guide with you throughout your startup's life--and increase your business's odds for success. In the HBR Entrepreneur's Handbook you'll find: Step-by-step guidance through the entrepreneurial process Concise explanations of the latest research and thinking on entrepreneurship from Harvard Business Review contributors such as Marc Andreessen and Reid Hoffman Time-honed best practices Stories of real companies, from Airbnb to eBay You'll learn: Which skills and characteristics make for the best entrepreneurs How to gauge potential opportunities The basics of business models and competitive strategy How to test your assumptions--before you build a whole business How to select the right legal structure for your company How to navigate funding options, from venture capital and angel investors to accelerators and crowdfunding How to develop sales and marketing programs for your venture What entrepreneurial leaders must do to build culture and set direction as the business keeps growing.\"--Jacket.
Entrepreneurial ecosystem research: present debates and future directions
by
Cavallo, Angelo
,
Balocco, Raffaello
,
Ghezzi, Antonio
in
Business conditions
,
Entrepreneurs
,
Entrepreneurship
2019
The purpose of this article is to review the emerging research on entrepreneurial ecosystem and to guide future research into this promising area. The study presents a critical review on the entrepreneurial ecosystem, starting from its very definition and antecedents. Combining prior research with building on the main concepts that constitute an entrepreneurial ecosystem, we have developed an original set of guidelines that can help scholars and practitioners seeking an answer to the following pressing question: “How can we gain a comprehensive understanding of an entrepreneurial ecosystem?”. We will then discuss the opportunities for expanding our current knowledge on entrepreneurial ecosystems and describe the current debates and directions for future research. Lastly, we will provide guidelines that policymakers may take into consideration when designing and issuing support measures to promote entrepreneurship in their local ecosystems.
Journal Article
Uncertainty Types and Transitions in the Entrepreneurial Process
2017
While judgment has hitherto typically been viewed as a discrete decision process, we propose that it be conceptualized instead as a continuous and dynamic process of reassessment and revision. Adopting this approach, we revisit the nature of entrepreneurial decision making under uncertainty. We begin with a novel typology of uncertainty that defines and delineates different types of uncertain contexts. We then examine the nature of decision making within these distinct contexts, highlighting differences in how entrepreneurs make decisions within different types of uncertainty. We build these insights into a theory of the entrepreneurial process that highlights the transitory nature of uncertainty as entrepreneurs make certain judgments and revise those judgments over time. We discuss how uncertainty transitions throughout the judgment process, how the judgment process continues dynamically even after a judgment is made, and how the nature of uncertainty shifts over time due to endogenous and exogenous change.
Journal Article
Entrepreneurial ecosystem elements
2021
There is a growing interest in ecosystems as an approach for understanding the context of entrepreneurship at the macro level of an organizational community. It consists of all the interdependent actors and factors that enable and constrain entrepreneurship within a particular territory. Although growing in popularity, the entrepreneurial ecosystem concept remains loosely defined and measured. This paper shows the value of taking a systems view of the context of entrepreneurship: understanding entrepreneurial economies from a systems perspective. We use a systems framework for studying entrepreneurial ecosystems, develop a measurement instrument of its elements, and use this to compose an entrepreneurial ecosystemindex to examine the quality of entrepreneurial ecosystems in the Netherlands. We find that the prevalence of high-growth firms in a region is strongly related to the quality of its entrepreneurial ecosystem. Strong interrelationships among the ecosystem elements reveal their interdependence and need for a systems perspective.
Journal Article
The Role of Accelerator Designs in Mitigating Bounded Rationality in New Ventures
by
Cohen, Susan L.
,
Hallen, Benjamin L.
,
Bingham, Christopher B.
in
Case studies
,
Consumers
,
Customers
2019
Using a nested multiple-case study of participating ventures, directors, and mentors of eight of the original U.S. accelerators, we explore how accelerators’ program designs influence new ventures’ ability to access, interpret, and process the external information needed to survive and grow. Through our inductive process, we illuminate the bounded-rationality challenges that may plague all ventures and entrepreneurs—not just those in accelerators—and identify the particular organizational designs that accelerators use to help address these challenges, which left unabated can result in suboptimal performance or even venture failure. Our analysis revealed three key design choices made by accelerators—(1) whether to space out or concentrate consultations with mentors and customers, (2) whether to foster privacy or transparency between peer ventures participating in the same program, and (3) whether to tailor or standardize the program for each venture—and suggests a particular set of choices is associated with improved venture development. Collectively, our findings provide evidence that bounded rationality challenges new ventures differently than it does established firms. We find that entrepreneurs appear to systematically satisfice prematurely across many decisions and thus broadly benefit from increasing the amount of external information searched, often by reigniting search for problems that they already view as solved. Our study also contributes to research on organizational sponsors by revealing practices that help or hinder new venture development and to emerging research on the lean start-up methodology by suggesting that startups benefit from engaging in deep consultative learning prior to experimentation.
Journal Article
Foundations of entrepreneurial strategy
2019
Research Summary
This paper develops an integrated framework linking the nature of the entrepreneurial choice process to the foundations of entrepreneurial strategy. Because entrepreneurs face many alternatives that cannot be pursued at once, entrepreneurs must adopt (implicitly or explicitly) a process for choosing among entrepreneurial strategies. The interplay between uncertainty and learning has the consequence that commitment‐free analysis yields multiple, equally viable alternatives from which one must be chosen. This endogenous gap between optimization and choice is a central paradox confronting entrepreneurs. Resolving this allows for a reformulation of the foundations of entrepreneurial strategy, emphasizing the role of choice rather than the centrality of the strategic environment.
Managerial Summary
The central strategic challenge for an entrepreneur is how to choose: entrepreneurs often face multiple potential strategies for commercializing their idea but due to the constraint of limited resources, cannot pursue them all at once. At the same time, entrepreneurs are venturing into new domains and as such, must choose under conditions of high uncertainty with only noisy learning available. This paper explores the interplay between these unique conditions that shape the entrepreneurial choice process, finding that often, the process will not yield a single best strategy but instead several equally attractive strategic alternatives. A key implication is that entrepreneurs cannot simply choose what not to do, but instead must proactively decide which equally viable alternatives to leave behind when choosing an entrepreneurial strategy.
Journal Article
A systematic literature review of entrepreneurial ecosystems in advanced and emerging economies
2021
The concept of entrepreneurial ecosystems has been gaining considerable attention during the past decade among practitioners, policymakers, and researchers. However, to date, entrepreneurial ecosystem research has been largely atheoretical and static, and it focused mostly on advanced economies. In this paper, we therefore do two things. We first systematically review entrepreneurial ecosystem literature and propose a conceptual model that explicates three entrepreneurial ecosystemdynamics based on resource, interaction, and governance logics, respectively. We then systematically review empirical studies of emerging economy entrepreneurial ecosystems to build a theoretical framework that highlights their salient features. We reveal three key findings that challenge the direct application of the model vis-à-vis advanced economy entrepreneurial ecosystems to emerging economy entrepreneurial ecosystems: resource scarcities, structural gaps, and institutional voids. Our findings contribute to entrepreneurial ecosystem literature in terms of ecosystem dynamics and contextualizing entrepreneurial ecosystems in emerging economies. We also provide policy implications for emerging countries in fostering new venture creation.
Journal Article
Activist Choice Homophily and the Crowdfunding of Female Founders
2017
In this paper, we examine when members of underrepresented groups choose to support each other, using the context of the funding of female founders via donation-based crowdfunding. Building on theories of choice homophily, we develop the concept of activist choice homophily, in which the basis of attraction between two individuals is not merely similarity between them, but rather perceptions of shared structural barriers stemming from a common social identity based on group membership. We differentiate activist choice homophily from homophily based on the similarity between individuals (\"interpersonal choice homophily\"), as well as from \"induced homophily,\" which reflects the likelihood that those in a particular social category will affiliate and form networks. Using lab experiments and field data, we show that activist choice homophily provides an explanation for why women are more likely to succeed at crowdfunding than men and why women are most successful in industries in which they are least represented.
Journal Article
Reconceptualizing entrepreneurial orientation
by
Anderson, Brian S.
,
Hornsby, Jeffrey S.
,
Kreiser, Patrick M.
in
Attitudes
,
Conceptualization
,
Empirical research
2015
Entrepreneurial orientation (EO)—a firm's strategic posture towards entrepreneurship—has become the predominant construct of interest in strategic entrepreneurship research. Despite the ever-increasing volume of nomological research on EO, there remain ongoing conversations regarding its ontology. Drawing from measurement theory, we outline an EO reconceptualization addressing the likely prevalence of Type II nomological error in the EO literature stemming from measurement model misspecification. Focusing on the question of whether EO is an attitudinal construct, a behavioral construct, or both, we propose a formative construction of EO viewing the exhibition of entrepreneurial behaviors and of managerial attitude towards risk as jointly necessary dimensions that collectively form the higher-order EO construct. We present an empirical illustration of our reconceptualization followed by a discussion of future research opportunities.
Journal Article
Start-up Inertia versus Flexibility
2020
Through an inductive, comparative study of four early entrants in the nascent air taxi market, we examine why start-ups, generally characterized as flexible, malleable entities, might instead exhibit inertial behavior. While two of the firms engaged in ongoing experimentation and adaptation, two firms actively reinforced their original venture concepts, even in the face of environmental shifts and declining firm performance. Comparisons of the firms revealed the importance of founders’ identities. Two founders saw themselves as “revolutionaries” building novel ventures to drive radical change. In contrast, two sets of founders saw themselves as “discoverers” identifying new opportunities and exploiting them to build successful businesses. We propose that these identities contributed to the firms’ inertia and flexibility primarily through the mechanism of identity affirmation. Acting in a manner consistent with their self-views, revolutionary founders committed to and actively reinvested in radical venture concepts, rejecting potentially adaptive changes that they felt compromised novelty. In contrast, discoverer founders prioritized experimentation and change in reaction to shifting conditions. We propose an emergent framework exploring how, in a nascent industry, a founder’s identity can set off self-reinforcing cycles of firm inertia or flexibility.
Journal Article