NEW FIRM CREATION IN THE UNITED STATES by Paul, D Reynolds

By Paul, D Reynolds

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Business experience can be considered in terms of general management or operations management. More coursework and experience may increase confidence in a start-up and, in turn, more participation; it may also increase the skills required to implement the new firm. One specific feature of training and experience is sophistication in financial management (Katz and Cabezuelo, Chapter 32). Tracking and managing financial resources is a critical feature of firm management, perhaps more so with a new firm coping with scarce resources.

7. 6 Ambient social, cultural community context and firm creation transitions Entry into the start-up process Residential tenure Immediate arrivals may be less likely to enter process Some years required to develop knowledge, contacts, and financial resources to enter start-up process Perceptions of entrepreneurial climate Positive climate increases participation Completion of the start-up process with a new firm Longer residence facilitates knowledge of local markets, competition, and business networks where everyone expects to work in an assembly plant, just like their parents and grandparents.

Perhaps most basic is the notion that those with distinctive career orientations will gravitate to the firm creation process (Carter, Gartner, and Shaver, Chapter 12). It is assumed that those with a stronger interest in self-realization, financial success, social recognition, meeting distinctive role expectations, implementing innovation, and being independent and autonomous may be more likely to enter into the start-up process. There is much less discussion of how a given set of career goals may facilitate the actual creation of a new firm.

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