Skip to main content
SpringerLink
Log in
Book cover

Technology-Based Nascent Entrepreneurship pp 223–256Cite as

Palgrave Macmillan

Nascent Technology Entrepreneurs New Venture Formation Activities

  • Chapter
  • First Online:

Abstract

Despite the importance accorded to start-up processes, we know little about the efforts invested by technology entrepreneurs while forming new ventures. This chapter addresses this important research agenda through an in-depth examination of the activities undertaken by the technology entrepreneur during new venture formation (NVF). The study of technology entrepreneurs, funded under the Commercialisation of Research and Development grant, is based in the south-east of Ireland in a start-up incubator programme (South East Enterprise Platform Programme). The findings indicate that the NVF comprises of seven activities: legitimising, social capital building, resourcing, marketing, product development, strategising and organising, and four activities consisted of sub-processes. The type and nature of activity engaged in by the technology entrepreneur varies considerably throughout the formation process, becoming less general and more sector specific as the process intensifies.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   99.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD   129.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Aldrich, H., & Martinez, M. A. (2001). Many are called, but few are chosen: An evolutionary perspective for the study of entrepreneurship. Entrepreneurship Theory and Practice, 25, 41–56.

    Google Scholar 

  • Allen, K., & Stearns, T. (2002). Nascent high tech entrepreneurs: The who, where, when and why. In G. D. Libecap (Ed.), Issues in entrepreneurship: Contracts, corporate characteristics and country differences (pp. 195–218). London: Elsevier Science.

    Google Scholar 

  • Ardichvili, A., Cardozo, R., & Ray, S. (2003). A theory of entrepreneurial opportunity identification and development. Journal of Business Venturing, 18, 105–123.

    Article  Google Scholar 

  • Atherton, A. (2007). Preparing for business start-up: Pre-start activities in the new venture creation dynamic. Journal of Small Business and Enterprise Development, 14(3), 404–417.

    Article  Google Scholar 

  • Audretsch, D. (2007). Entrepreneurship: A survey of the literature for public policy. International Journal of Entrepreneurship Education, 5, 3–72.

    Google Scholar 

  • Balogun, J., Huff, A. S., & Johnson, P. (2003). Three responses to the methodological challenges of studying strategizing. Journal of Management Studies, 40, 197–224.

    Article  Google Scholar 

  • Bhave, M. (1994). A process model of entrepreneurial venture creation. Journal of Business Venturing, 9, 223–242.

    Article  Google Scholar 

  • Bhidé, A. (1994). How entrepreneurs craft strategies that work. Harvard Business Review, 72, 150–161.

    Google Scholar 

  • Bird, B. (1988). Implementing entrepreneurial ideas: The case for intention. Academy of Management, 13(3), 442–453.

    Google Scholar 

  • Brush, C., Edelman, L., & Manolova, T. (2008). Properties of emerging organizations: An empirical test. Journal of Business Venturing, 23(5), 547–566.

    Article  Google Scholar 

  • Busenitz, L. W., & Barney, J. (1997). Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision making. Journal of Business Venturing, 12, 9–30.

    Article  Google Scholar 

  • Busenitz, L., West, P. G., Shepherd, D., Nelson, T., Chandler, G. N., & Zacharakis, A. (2003). Entrepreneurship research in emergence: Past trends and future directions. Journal of Management, 29(3), 285–308.

    Article  Google Scholar 

  • Carter, N., Gartner, W., & Reynolds, P. (1996). Exploring start-up event sequences. Journal of Business Venturing, 11, 151–166.

    Article  Google Scholar 

  • Chrisman, J., Bauerschmidt, A., & Hofer, C. (1998). The determinants of new venture performance: An extended model. Entrepreneurship: Theory and Practice, 23(1), 5–29.

    Google Scholar 

  • Churchill, N. C., & Lewis, V. L. (1983). The five stages of small business growth. Harvard Business Review, 61, 30–50.

    Google Scholar 

  • Cooper, S. (2000). Technical entrepreneurship. In S. Carter & D. Jones-Evans (Eds.), Enterprise and small business: Principles practices and policy (pp. 220–241). Essex: Financial Times/Prentice Hall.

    Google Scholar 

  • Cooper, S., & Park, J. (2008). The impact of ‘incubator organizations’ on opportunity recognition and technology innovation in new, Entrepreneurial high-technology ventures. International Small Business Journal, 26(1), 27–50.

    Google Scholar 

  • Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18, 301–331.

    Google Scholar 

  • Deakins, D., & Freel, M. (2006). Entrepreneurship and small firms (4th ed.). Berkshire: McGraw-Hill Education.

    Google Scholar 

  • Delmar, F., & Shane, S. (2002). What firm founders do: A longitudinal study of the start-up process. In W. D. Bygrave et al. (Eds.), Frontiers of entrepreneurship research (pp. 632–645). Wellesley, MA: Babson College.

    Google Scholar 

  • Delmar, F., & Shane, S. (2004). Legitimating first: Organizing activities and the survival of new ventures. Journal of Business Venturing, 19, 385–410.

    Article  Google Scholar 

  • Edelman, L., Manolova, T., & Brush, C. (2008). Entrepreneurship education: Correspondence between practices of nascent entrepreneurs and textbook prescriptions for success. Academy of Management Learning and Education, 7(1), 56–70.

    Article  Google Scholar 

  • Fontes, M. (1997). Creation and development of new technology-based firms in peripheral economies. In D. Jones-Evans & M. Klofsten (Eds.), Technology, innovation and enterprise: The European experience. London: Macmillan Press.

    Google Scholar 

  • Fredrickson, J., & Acquinto, A. (1989). Inertia and creeping rationality in strategic decision processes. Academy of Management Journal, 32, 516–542.

    Article  Google Scholar 

  • Fredrickson, J., & Mitchell, T. (1984). Strategic decision processes: Comprehensiveness and Performance in an Industry with an Unstable Environment. Academy of Management Journal, 27, 399–423.

    Article  Google Scholar 

  • Gately, C., & Cunningham. J. (2014a). The contributions and disconnections between writing a business plan and the start-up process for incubator technology entrepreneurs. In A. C. Corbett, D. S. Siegel, & J. A. Katz (Eds.), Academic entrepreneurship: Creating an entrepreneurial ecosystem. Advances in entrepreneurship, firm emergence and growth (Vol. 16, pp. 197–241). Emerald Group.

    Google Scholar 

  • Gately, C., & Cunningham, J. (2014b). Building intellectual capital in incubated firms. Journal of Intellectual Capital, 15(4), 516–536.

    Google Scholar 

  • Gartner, W. (1985). A conceptual framework for describing the phenomenon of new venture creation. Academy of Management Review, 10(4), 696–706.

    Google Scholar 

  • Gartner, W., Bird, B., & Starr, J. (1992). Acting as if: Differentiating entrepreneurial from organisational behaviour’. Entrepreneurship Theory and Practice, 16(3), 13–30.

    Google Scholar 

  • Gartner, W., & Carter, N. (2004). Overview: The start-up process. In W. Gartner, K. Shaver, N. Carter, & P. Reynolds (Eds.), Handbook of entrepreneurial dynamics: The process of business creation. Thousand Oaks: Sage.

    Google Scholar 

  • Gartner, W., Shaver, K., Carter, N., & Reynolds, P. (2004). Handbook of entrepreneurial dynamics: The process of business creation. Thousand Oaks: Sage.

    Google Scholar 

  • Gatewood, E., Shaver, K., & Gartner, W. (1995). Finding the entrepreneur in entrepreneurship. Entrepreneurship Theory and Practice, 18(3), 5–10.

    Google Scholar 

  • Gruber, M. (2004). Marketing in new ventures theory and empirical evidence. Schmalenbach Business Review, 56, 64–199.

    Google Scholar 

  • Gruber, M. (2007). Uncovering the value of planning in new venture creation: A process and contingency perspective. Journal of Business Venturing, 22(6), 782–807.

    Article  Google Scholar 

  • Hannon, P., & Atherton, A. (1998). Small business success and the art of orienteering: The value of plans, planning and strategic awareness in the competitive small firm. Journal of Small Business and Enterprise Development, 5(2), 102–119.

    Article  Google Scholar 

  • Heriot, K., & Loughman, T. (2009). Resolving the planning conundrum in new venture creation: An adaptation of Mintzberg’s strategy formation perspective. The Journal of Applied Management and Entrepreneurship, 14(4), 14–24.

    Google Scholar 

  • Howarth, C., Tempest, S., & Coupland, C. (2005). Rethinking entrepreneurship methodology and definitions of the entrepreneur. Journal of Small Business and Enterprise Development, 12(1), 24–40.

    Article  Google Scholar 

  • Jones-Evans, D. (1995). A typology of technology based entrepreneurs: A model based on previous occupational background. International Journal of Entrepreneurial Behaviour and Research, 1(1), 26–47.

    Article  Google Scholar 

  • Jones-Evans, D. (1996). Technical entrepreneurship, strategy and experience. International Small Business Journal, 14, 15–40.

    Article  Google Scholar 

  • Jones-Evans, D. (1997). Technical entrepreneurship, experience and the management of small technology-based firms. In D. Jones-Evans & M. Klofsten (Eds.), Technology, innovation and enterprise: The European experience. London: Macmillan Press.

    Chapter  Google Scholar 

  • Jones-Evans, D., & Klofsten, M. (1997). Technology, innovation and enterprise: The European experience. London: Macmillan Press.

    Book  Google Scholar 

  • Katz, J., & Gartner, W. (1988). Properties of emerging organizations. The Academy of Management Review, 13(3), 429–441.

    Google Scholar 

  • Kessler, A. (2007). Success factors for new businesses in Austria and the Czech Republic. Entrepreneurship and Regional Development, 19, 381–403.

    Google Scholar 

  • Kirzner, I. (1983). Entrepreneurship and the future of capitalism. In J. Bachman (Ed.), Entrepreneurship and the outlook for America (pp. 149–173). New York: The Free Press.

    Google Scholar 

  • Liao, J., & Gartner, W. (2008). The influence of pre-venture planning on new venture creation. Journal of Small Business Strategy, 18(2), 1–22.

    Google Scholar 

  • Liao, J., & Welsch, H. (2002). The temporal patterns of venture creation process: An exploratory study. In W. D. Bygrave‚ C. Brush‚ P. Davidson‚ J. Fiet‚ R. T. Harrison‚ M. Lerner‚ G. Meyer‚ J. Sohl‚ & A. Zacharakis‚ (Eds.)‚Frontiers of Entrepreneurship Research. Boston‚ USA: Babson College Wellesley.

    Google Scholar 

  • Liao, J., & Welsch, H. (2008). Patterns of venture gestation process: Exploring the differences between tech and non-tech nascent entrepreneurs. Journal of High Technology Management Research, 19, 103–113.

    Article  Google Scholar 

  • Lichtenstein, B., & Brush, C. (2001). How do resource bundles develop and change in new ventures? A dynamic model and longitudinal exploration. Entrepreneurship Theory and Practice, 25(3), 37–58.

    Google Scholar 

  • Low, M. B., & MacMillan, I. C. (1988). Entrepreneurship: Past research and future challenges. Journal of Management, 14(2), 139–161.

    Article  Google Scholar 

  • McCarthy, B. (2003). The impact of the entrepreneurs personality on the strategy formation and planning process in SMEs. Irish Journal of Management Incorporating IBAR, 24, 154–172.

    Google Scholar 

  • McCarthy, B., & Leavy, B. (2000). Phases in the strategy formation process: An exploratory study of Irish SMEs. IBAR–Journal of the Irish Academy of Management, 21(2), 55.

    Google Scholar 

  • Meers, K., & Robertson, C. (2007). Strategic planning in profitable small firms in the United States. The Business Review, 7(1), 302–307.

    Google Scholar 

  • Newbert, S. (2005). New Firm Formation: A dynamic capability perspective. Journal of Small Business Management‚ 43(1)‚ 55–77.

    Google Scholar 

  • Park, J. (2005). Opportunity recognition and product innovation in entrepreneurial hi-tech start- ups: A new perspective and supporting case study. Technovation, 25, 739–752.

    Article  Google Scholar 

  • Phua, S., & Jones, O. (2010). Marketing in new business ventures: Examining the myth of informality. Entrepreneurship and Innovation Management, 11(1), 36–55.

    Google Scholar 

  • Prodan, I. (2007). A model of technological entrepreneurship. In F. Thérin (Ed.), Handbook of research on techno-entrepreneurship. Cheltenham, UK: Edward Elgar.

    Google Scholar 

  • Reynolds, P. (2000). National panel study of US business start-ups: Background and Methodology. Databases for the Study of Entrepreneurship, 4, 153–227.

    Google Scholar 

  • Reynolds, P., Carter, N., Gartner, W., & Greene, P. (2004). The prevalence of nascent entrepreneurs in the United States: Evidence from the panel study of entrepreneurial dynamics. Small Business Economics, 23, 263–284.

    Article  Google Scholar 

  • Reynolds, P. D., & Curtin, R. T. (2008). Panel Study of Entrepreneurial Dynamics (PSED) Dataset: Start-Up Activities.

    Google Scholar 

  • Reynolds, P., & Miller, B. (1992). New firm gestation: Conception, birth and implications for research. Journal of Business Venturing, 7, 405–417.

    Article  Google Scholar 

  • Schumpeter, J. A. (1934). A theory of economic development. New York: Oxford Press.

    Google Scholar 

  • Shane, S. (2000). Prior knowledge and the discovery of entrepreneurial opportunities. Organization Science, 11(4), 448–469.

    Google Scholar 

  • Shane, S., & Delmar, F. (2004). Planning for the market: Business planning before marketing and the continuation of organizing efforts. Journal of Business Venturing, 19, 767–785.

    Article  Google Scholar 

  • Shaver, K. G., & Scott, L. R. (1991). Person, process, choice: The psychology of new venture creation. Entrepreneurship Theory and Practice, 16, 23–45.

    Google Scholar 

  • South East Enterprise Platform Programme (SEEPP). Retrieved from http://www.seepp.ie

  • Tesfaye, B. (1997). Patterns of formation and development of high-technology entrepreneurs. In D. Jones-Evans & M. Klofsten (Eds.), Technology, innovation and enterprise: The European experience. London: Macmillan Press.

    Google Scholar 

  • Thérin‚ F. (Ed.). (2007). Handbook of research on techno-entrepreneurship. Cheltenham‚ UK: Edward Elgar.

    Google Scholar 

  • Timmons, J. A., & Spinelli, S. (2007). New venture creation: Entrepreneurship for the 21 st century (International ed.). New York: McGraw-Hill.

    Google Scholar 

  • Tornikoski, E. T., & Newbert, S. L. (2007). Exploring the determinants of organizational emergence: A legitimacy perspective. Journal of Business Venturing, 22, 311–335.

    Article  Google Scholar 

  • Ucbasaran, D., Westhead, P., & Wright, M. (2005). Decisions, actions and performance: Do novice, serial, and portfolio entrepreneurs differ? Journal of Small Business Management, 43(4), 393–417.

    Article  Google Scholar 

  • Witt, P. (2004). Entrepreneurs’ networks and the success of start-ups. Entrepreneurship and Regional Development, 16(5), 391–412.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. EDHEC Business School, Lille, France

    Clare Gately

  2. Department of Management and Organisation, Waterford Institute of Technology, Waterford, Ireland

    Clare Gately

  3. Newcastle Business School, Northumbria University, Newcastle upon Tyne, UK

    James A. Cunningham

Authors
  1. Clare Gately
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. James A. Cunningham
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Clare Gately .

Editor information

Editors and Affiliations

  1. Newcastle Business School, Northumbria University Newcastle Business School, North Shields, United Kingdom

    James A. Cunningham

  2. University of Otago, Otago Business School University of Otago, Dunedin, New Zealand

    Conor O'Kane

Appendices

Appendix 1: Stages of Development at the End of SEEPP

Stage of venture formation at end of SEEPP

Description of terms

Up and running (13)

The SEEPP venture had begun to trade and had made exchanges (supply of goods or services) for reward in the market place.

Still in the process of starting up this venture (11)

The entrepreneur was still actively trying to establish the SEEPP venture and was engaging in activities to pursue venture formation

Never started this venture (0)

The entrepreneur had ceased the venture formation process having never made exchanges (supply of goods or services) for reward in the market place

Ceased trading this venture (0)

The entrepreneur had ceased the venture having made exchanges (supply of goods or services) for reward in the market place

Trying to set up another venture (0)

The entrepreneur had ceased trading or never started the SEEPP venture and was actively trying to establish another venture and engaging in activities to pursue venture formation

Sold/amalgamated this venture (1)

The SEEPP venture was sold or amalgamated with another firm either prior to or after the venture began to trade

Appendix 2: Details of SEEPP and CORD

This research study has been carried out among a specific category of technology entrepreneurs—those who were eligible for CORD funding (see www.enterprise-ireland.ie) while participating in a graduate incubator programme (SEEPP, www.seepp.ie) in the south-east of Ireland. CORD funding is targeted at entrepreneurs with a potential to commercialise ‘knowledge-based, export-oriented new ventures’ who belong to the third-level sectors and are graduates. CORD funding is geared towards funding innovative, technologically advanced projects with international potential that have the ability to become high potential start-ups (HPSUs). The entrepreneurs interviewed in this study were identified as ‘technology entrepreneurs’ in the light of their eligibility for Enterprise Ireland’s 1 CORD funding, which necessarily funds ‘innovative, technologically advanced projects with international potential and the ability to become high potential start-ups (HPSUs)’.

The SEEPP provides a range of supports to graduate entrepreneurs such as enterprise training, dedicated one-to-one mentoring, office space in a research and development (ArcLabs) facility, business networking opportunities, knowledge transfer and access to WIT’s academic milieu.

Appendix 3: Economic Sector Profile of the SEEPP New Ventures

Economic sector

Number of business plans analysed

Number of interviewees

Information and communication

14

9

Professional, scientific and technical activities

9

6

Manufacturing

8

3

Financial and insurance activities

1

1

Human health and social work activities

1

1

Arts, entertainment and recreation

3

1

Wholesale and retail trade

2

2

Water supply, sewerage, waste management and remediation activities

1

1

Real-estate activities

1

1

Total

40

25

  1. Principal Economic Sector Experience: NACE categories used

Appendix 4: Educational Attainment of CORD-Funded Interviewees (n = 25)

Highest Educational Attainment (By Number of Participants in Brackets)

Educational/Training Background (By Number of Participants in Brackets)

Number of Prior Ventures Formed (By Number of Participants in Brackets)

Third-level non-degree (1)

Third-level degree (14)

Master’s degree (4)

Professional qualification (5)

Ph.D. (1)

Engineering (7)

Science (7)

Business Administration (1)

Arts (2)

Business (other than Admin.) (8)

One (21)

Two (2)

Four (1)

Six (1)

  1. Highest educational attainment: CSO classifications used
  2. Educational/training background: CSO classifications used
  3. Number of new ventures formed: One indicates first-time, full-time entrepreneurship

Copyright information

© 2017 The Author(s)

About this chapter

Cite this chapter

Gately, C., Cunningham, J.A. (2017). Nascent Technology Entrepreneurs New Venture Formation Activities. In: Cunningham, J., O'Kane, C. (eds) Technology-Based Nascent Entrepreneurship. Palgrave Advances in the Economics of Innovation and Technology. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-59594-2_10

Download citation

  • DOI: https://doi.org/10.1057/978-1-137-59594-2_10

  • Published:

  • Publisher Name: Palgrave Macmillan, New York

  • Print ISBN: 978-1-137-59593-5

  • Online ISBN: 978-1-137-59594-2

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation