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The role of financial bootstrapping in handling the liability of newness in incubator businesses

Winborg, Joakim LU (2015) In International Journal of Entrepreneurship and Innovation 16(3). p.197-206
Abstract
Recent research in entrepreneurship has examined factors that

could reduce the challenges facing new businesses (the so-called ‘liabilities of newness’). Seeking to contribute to this research, this study examines the potential role of a financial bootstrapping approach (finding ways of securing resources on favourable terms). Even though financial bootstrapping has received increased attention in entrepreneurship research, our understanding of the relative importance of financial bootstrapping is undeveloped. This study focuses on new businesses established in Swedish university incubators and is based on data from a questionnaire sent to 120 new business founders. Given the role of incubators to provide resources and contacts on... (More)
Recent research in entrepreneurship has examined factors that

could reduce the challenges facing new businesses (the so-called ‘liabilities of newness’). Seeking to contribute to this research, this study examines the potential role of a financial bootstrapping approach (finding ways of securing resources on favourable terms). Even though financial bootstrapping has received increased attention in entrepreneurship research, our understanding of the relative importance of financial bootstrapping is undeveloped. This study focuses on new businesses established in Swedish university incubators and is based on data from a questionnaire sent to 120 new business founders. Given the role of incubators to provide resources and contacts on favourable terms, it can be argued that they represent an institutionalized arena in which new businesses can identify bootstrapping possibilities. The findings show that the possession of a financial bootstrapping approach is beneficial for handling the external liability of newness, whereas no significant effects were found on the internal liability of newness. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
university incubator, liability of newness, financial bootstrapping, new businesses
in
International Journal of Entrepreneurship and Innovation
volume
16
issue
3
pages
197 - 206
publisher
IP Publishing
external identifiers
  • scopus:84939614805
ISSN
2043-6882
DOI
10.5367/ijei.2015.0188
language
English
LU publication?
yes
id
86668d18-9fa4-4c7c-85a3-937064bddc9b (old id 8302917)
date added to LUP
2015-12-08 12:33:33
date last changed
2017-10-01 03:21:44
@article{86668d18-9fa4-4c7c-85a3-937064bddc9b,
  abstract     = {Recent research in entrepreneurship has examined factors that<br/><br>
could reduce the challenges facing new businesses (the so-called ‘liabilities of newness’). Seeking to contribute to this research, this study examines the potential role of a financial bootstrapping approach (finding ways of securing resources on favourable terms). Even though financial bootstrapping has received increased attention in entrepreneurship research, our understanding of the relative importance of financial bootstrapping is undeveloped. This study focuses on new businesses established in Swedish university incubators and is based on data from a questionnaire sent to 120 new business founders. Given the role of incubators to provide resources and contacts on favourable terms, it can be argued that they represent an institutionalized arena in which new businesses can identify bootstrapping possibilities. The findings show that the possession of a financial bootstrapping approach is beneficial for handling the external liability of newness, whereas no significant effects were found on the internal liability of newness.},
  author       = {Winborg, Joakim},
  issn         = {2043-6882},
  keyword      = {university incubator,liability of newness,financial bootstrapping,new businesses},
  language     = {eng},
  number       = {3},
  pages        = {197--206},
  publisher    = {IP Publishing},
  series       = {International Journal of Entrepreneurship and Innovation},
  title        = {The role of financial bootstrapping in handling the liability of newness in incubator businesses},
  url          = {http://dx.doi.org/10.5367/ijei.2015.0188},
  volume       = {16},
  year         = {2015},
}