The influence of multiple constraints along the venture creation process and on start-up intention in nascent entrepreneurship

ABSTRACT

This study examines the influence of multiple constraints encountered by nascent entrepreneurs (NEs) in their current phase of the venture creation process – disengaged, still trying or started – and on their start-up intention after disengagement. Drawing on a sample of 1872 German NEs collated in 2014, we extend the literature in the field of nascent entrepreneurship and encountered constraints. By applying the theories of planned behaviour and appraisal as an overarching theoretical foundation, we develop our hypotheses. We find that individuals who have recently abandoned their venture have faced significantly more constraints than other NEs. A deeper analysis reveals that financing difficulties and especially certain personal characteristics impede venture creation. Furthermore, our results show that constraints beyond an NE’s own control are lethal for the continuance of the intention to create a new business. We derive important implications for NEs, entrepreneurship education and policymakers.

KEYWORDS:

• Constraints
• nascent entrepreneur
• new venture creation
• venture creation process
• barriers

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

¹ This is probably because the access for researchers is subject to the following requirements: First, the data can only be analyzed at the premises of KfW in the city of Frankfurt am Main, Germany. Second, the micro-data are only available in Stata 14.0. Third, the annual questionnaires, codebooks and Stata variable labels are only available in German and require an exact translation. Scholars can apply for data access by submitting a research outline to [email protected].