THE INFLUENCE OF OUTSIDER ASSISTANCE ON NASCENT ENTREPRENEURS
Jahangir H. Sarder, American International University-Bangladesh
Principal Topic
Few economic phenomena have attracted more attention in recent years than that of entrepreneurship and small enterprise development in most countries. This nearly universal interest in entrepreneurial development results in the creation of myriad support agencies and programs, providing outside assistance to this sector. Studies of surviving and successful ventures have made a significant contribution to our understanding of entrepreneurship, enterprise performance and growth. Nevertheless, serious gaps remain in our knowledge about the influence of outsider support on nascent entrepreneurs (an individual who intends to a start business but has not yet succeeded) in the creation of new ventures.
This paper investigates the influence of outsider assistance on nascent entrepreneurs in the creation of new venture. It focuses on whether outsider assistance increases the likelihood that individuals with entrepreneurial intentions will start a business.
Method
The sample for the study consists of 293 nascent entrepreneurs in Dhaka, Bangladesh. Data were gathered between September 2000 and March 2001, using a semi-structured interview schedule. Properties used to measure venture creation, drawing from resource-based theory, are entrepreneurial intention, boundary, resource, and exchange. Analysis involves comparison of the creation of new venture between entrepreneurs, who received outside assistance and those, who did not receive such assistance.
Results and Implications
The findings of the study reveal an overall positive influence of outsider assistance on nascent entrepreneurs in the creation of new ventures. Such influences, however, vary depending on how venture creation is measured. Therefore, would be entrepreneurs should seek out such support in starting their new ventures. Support providers should also emphasize on providing assistance to aspiring entrepreneurs early in their venture creation. The study results indicate moderating influences of outsider support on the relationship between entrepreneur intention and new venture creation but nothing about causation (cause-effect relationship). Such a study could be conducted in future. Moreover, future research is needed in understanding the process by which outsider assistance influences on the creation of new ventures of nascent entrepreneurs.
CONTACT: Jahangir Sarder, AIUB, House # 83/B, Road # 4, Kemal Ataturk Avenue, Banani, Dhaka, 1213, Bangladesh; (T) 88 018-286 911; jsarder@du.bangla.net
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