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Nascent Entrepreneurship
The Importance of Social Embeddedness and Resource Bootstrapping
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145 b
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349
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1 794
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Firm founding is an evolutionary process.Part of this process involves undertaking a series of gestation activities.Empirical evidence shows that more than half of firms in gestation do not survive the first eighteen months. One of the reasons given for this failure is thatfirms in gestation are subject to liability of newness. One of the consequences of this liability of newness is that new firms are faced with institutional barriers to the human, social, and financial capital resources necessary to progress to emergence. This book adduces evidence that in the face of these barriers, successful emergence of a business start-up will be identified with (a) social embeddedness, i.e., efforts to endear the new venture to those in position to determine the venture s socio-political legitimacy and with that legitimacy comes resources and markets and/or (b) creative resource bootstrapping, i.e., creativity in locating resources where there are none. This book is particularly useful to instructors in entrepreneurship and to people contemplating or in the middle of starting new ventures.
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