Abstract

The paper explores the advantages of newness and positive aspects of resource constraints, critically departing from predominant assumptions of constraints and newness. At first glance, starting a profitable new business seems like an impossible mission, and theoretically the odds are stacked against new and emergent firms. In the paper we develop, based on earlier research, six theoretical concepts (legitimacy, fashion, flexibility, networks, bootstrapping, and motivation), examining the advantages of new venture entry. We examine these concepts because earlier research has tended to focus on the liabilities of newness with considerably less scholarly effort put into investigating the advantages of being new on the market.

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