Exploring the Venture Creation Process : Evidences from Tech and Non-Tech Nascent Entrepreneurs

Previous research into the venture creation processhas suggested that it takes on a linear, unitary model, although littleempirical evidence exists to support this conclusion.This studyinvestigates the differences in the venture creation processes oftechnology-based entrepreneurs (TBEs) and non-technology-based entrepreneurs(N-TBEs). The characteristics of the venture creation process, including thenumber of startup activities, gestation time, patterns of association, andsequencing of activities, are examined. A detailed literature review of the theoretical background of the venturecreation process is provided and several hypotheses concerning startupactivities, overall and of various types, are formulated.Data wereobtained from the longitudinal U.S. Panel Study of Entrepreneurial Dynamics(PSED).Measures were taken from this data set, including type of startupevents, number of events, timing of occurrence and gestation period, and thecompletion of the venture creation process.To analyze the data, theresearchers utilized an ANCOVA model, as well as Web Node and Capri Node withinClementine®. The researchers found that professional experience and education did notsignificantly influence the number of startup activities and only had limitedinfluence on gestation period.The TBEs were found to engage in morestartup activities (i.e., planning, legitimacy establishment, resourcecombination) and had significantly longer gestation periods thanN-TBEs.The effects of peripheral firm activities are discussed, as areareas for future research. (AKP)