Publication Type

Journal Article

Publication Date

9-2012

Abstract

Who helps entrepreneurs raise the resources they need and how much equity does an entrepreneur distribute in return? We use a sample of 611 entrepreneurs in the U.S. to examine why some entrepreneurs are more likely than others to distribute ownership selectively to helpers. We find that entrepreneurs with specific industry experience and start-up experience are able to provide ownership more selectively and raise more resources from their helpers. We refine the categorization of social ties further to make a distinction between professional and familial ties to show that the ownership distribution and types of resource contributions vary by the mix of ties in the entrepreneur's helper network. Our findings have implications for theories of resource assembly, social structure and entrepreneurship, and organization design.

Keywords

Equity Distribution, Resources, Specific Experience

Discipline

Entrepreneurial and Small Business Operations | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Journal of Business Venturing

Volume

27

Issue

5

First Page

525

Last Page

543

ISSN

0883-9026

Identifier

10.1016/j.jbusvent.2012.02.001

Publisher

Elsevier

Additional URL

http://dx.doi.org/10.1016/j.jbusvent.2012.02.001

Comments

Received the Best Paper Award in the family business category, Entrepreneurship Division, Academy of Management, 2006.

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