Resource parsimony, resource cooptation and habitual entrepreneurs: New concepts for entrepreneurship theory and research

What are the strategies, skills and behaviors used by entrepreneurs to acquire resources for new ventures? History and contemporary evidence document numerous examples of entrepreneurial resourcefulness. And, several theories in Economics, Sociology and Management recognize the triumphs of entrepreneurial ingenuity. But, few academic studies have closely investigated the empirical dimensions of new venture resource acquisition strategies. This study proposes three new concepts that can be useful for developing theoretical constructs, quantitative and qualitative measures, and empirical tests of the role of resource acquisition strategies in new venture performance. An essay on the role of Resource Parsimony in new venture creation describes the creative solutions developed in response to the need to operate with minimal resources. An essay on Resource Cooptation via social contracting highlights the value of using a socio-economic perspective to study the resource exchange processes for new ventures. And, an essay on the strategies of Habitual Entrepreneurs defines the dimensions of this entrepreneurial career pattern and explores why these experienced business founders have difficulty implementing strategies of Resource parsimony and Resource Cooptation. Several practical insights about entrepreneurs and new ventures are obtained which challenge conventional wisdom and warrant further research: (1) the risks and hazards of having too much money in new venture development; (2) the trade-offs between the use of risk labor and risk capital in developing new ventures; and (3) the need to view prior entrepreneurial experience as both an asset and a liability.