Abstract

Organizations come to exist when they make the first sale, hire employees, and receive external financing (Reynolds & Miller, 1992). By speeding up the emergence process a nascent entrepreneur can gain, for example, financial independence and legitimacy (Schoonhoven et al. 1990), and competitive advantage (Stalk, 1988). Therefore, a nascent entrepreneur should strive to exploit the identified opportunity as promptly as possible. Since initial conditions have an important role in explaining entrepreneurial success (e.g. Bamford et al. 2000), we propose that three characteristics of opportunities - Market & Technological novelty and Opportunity familiarity- have a universal (across industries and different types of ventures) effect on how long it takes to transform a nascent organization into operational one.

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