The determinants and growth implications of venture creation speed

Joan-Lluis Capelleras*, Francis J. Greene

*Corresponding author for this work

Research output: Contribution to journalLiterature reviewpeer-review

Abstract / Description of output

Time is central to our understanding of entrepreneurship. However, while prior research has shown a general link between decision speed and venture performance, little is known about what factors influence the speed of venture creation. Equally, little research has been conducted on how venture creation speed impacts on venture growth. This paper examines the determinants and growth implications of venture creation speed from a social constructionist perspective, which sees that time both shapes and is shaped by individuals, social contexts and spatial structures. We, therefore, investigate the influence of entrepreneurial characteristics, external support, institutional influences and the regional context in which venture creation speed occurs and subsequently impacts on growth in new ventures. Results from structured interviews with 381 active de novo entrepreneurs in Catalonia (Spain) show a positive relationship between prior entrepreneurial experience and speed. Interestingly, support from potential suppliers and customers is useful not only for speed but also for the subsequent growth of the venture. In contrast, business planning retards venture creation and fails to lead to an improvement in growth. Results also indicate a positive, but weak, relationship between speed and growth, once entrepreneurial, environmental and venture characteristics are held constant. The paper subsequently discusses these findings and suggests further research directions and practical implications.

Original languageEnglish
Pages (from-to)317-343
Number of pages27
JournalEntrepreneurship and Regional Development
Volume20
Issue number4
DOIs
Publication statusPublished - 8 Aug 2008

Keywords / Materials (for Non-textual outputs)

  • new ventures
  • venture creation speed
  • venture growth
  • decision speed
  • start-up
  • organizational growth
  • strategic management
  • employment growth
  • basic premises
  • founders human
  • firm formation
  • design school
  • United States

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