Venture creation speed and subsequent growth: Evidence from South America

Joan Lluis Capelleras, Francis J. Greene, Hugo Kantis, Rodrigo Rabetino

    Research output: Contribution to journalArticleResearchpeer-review

    30 Citations (Scopus)

    Abstract

    Though time is an important dimension of the venture creation process, our understanding of why some entrepreneurs are able to act more quickly than others is limited. Equally, not much is known about the relationship between venture creation speed and the subsequent venture growth. In this paper, we use a resource-based perspective to provide insights into the factors that quicken or retard venture creation and to explore how speed impacts on subsequent growth. This is important because the topic remains generally underresearched and because even less is understood about venture creation speed in the context of South American economies. Data were collected from face-to-face interviews with 647 entrepreneurs in Argentina, Brazil, Chile, and Peru. Using a multivariate regression framework, we find that entrepreneurs make use of their human and social capital resources to shape the speed by which their venture is created. Moreover, their perceptions of unfavorable environmental conditions seem to retard venture creation. Findings also suggest that entrepreneurs who take more time to create a more solid resource base tend to receive better growth outcomes. Implications from the findings are discussed. © 2010 International Council for Small Business.
    Original languageEnglish
    Pages (from-to)302-324
    JournalJournal of Small Business Management
    Volume48
    Issue number3
    DOIs
    Publication statusPublished - 1 Jul 2010

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