Formation and Survival of New Ventures

Abstract

This article proposes a staged model of how relevant interpersonal and interorganizational networks can affect the formation and survival of new entrepreneurial ventures. Focusing on two critical points in new entrepreneurial venture formation, the article posits that the formation process requires not only the supply of appropriate resources, but also specific patterns of resource exchanges between the entrepreneur, the potential new venture and their respective networks. The model advances the existing literature on new entrepreneurial venture formation by highlighting the importance of maintaining appropriate patterns of resource exchanges between the entrepreneur’s new venture and the relevant networks in which the venture embeds.

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