The Impacts of Founding Team Prior Experience on the Efficiency of New Venture Creation
|School||Huazhong University of Science and Technology|
|Course||Technology Economics and Management|
|Keywords||Entrepreneurial activity Founding team Start-up experience Industry experience New venture creation|
With the development of entrepreneurial activity, how to improve the success rate ofentrepreneurship is becoming a hot issue. Although scholars studied factors that influenceventure creation from different perspectives, such as entrepreneurs personal characteristics,social capital and so on. However, there still exists a widespread phenomenon, strongentrepreneurial will with low business survival rate which rises an ongoing debate on whatactually is the essence of being entrepreneurial and on what makes a successfulentrepreneur. Knowing more about the antecedents of a person’s entrepreneurialperformance is not only essential for progress in theory development on the enterprisingindividual, but also for policymakers and educators who are interested in the promotion ofentrepreneurial success.Entrepreneurs prior experience which is an important factor for new venture creation,has received attention of many scholars. But most research didn’t combine founding team’sprior experience with new venture creation to have further discussion. Based on theperspective of entrepreneurial learning theory, using duration and concentration ofentrepreneurial activities as new venture creation efficiency, this paper attempts toexamine the influence of founding team prior start-up experience and industry experienceon the efficiency of new venture creation by multiple linear regression. Furthermore, weuse T-test analysis to compare the importance of start-up experience and industryexperience in new venture creation.The results indicate that team members’ prior start-up experience can speed up newventure creation, but industry experience needs longer time to finish entrepreneurialactivities. This paper also found that team members’ with start-up experience has shorterduration of entrepreneurial activities than industry experience, and the concentration ofentrepreneurial activities for founding team with start-up experience is higher thanindustry experience. The researches enrich entrepreneurial learning theory, and also guidethe entrepreneurs how to choose the best person for their start-ups, at the same time, thesefindings give a reference for the heterogeneity teams how to manage knowledge transfer.