Case Studies on What Entrepreneurs Actually Do to Attract Resources: A Two-Route Framework

Abstract

Taking a grounded approach, we devised a framework to explain how entrepreneurs attract critical resources to venture creation and development. The study was based on qualitative data from a series of interviews with thirteen entrepreneurs conducted in a sample of six case studies. The framework distinguishes two routes that entrepreneurs use to attract resources for their ventures: idea selling, referring to how the entrepreneurs seek to engage others within the venture and to persuade them to support their entrepreneurial efforts; and network building, concerning the attraction effects of the entrepreneurs' social network positions and venture legitimacy. The framework adds to entrepreneurship theory by proposing a conceptual model of resource gathering strategies in new venture creation and development.

Entrepreneurs as Trust’s Builders: An Integrated Model

“…To give to know her work, so some of her clients did not have too much uncertainty to invest in her company Lopes et al, 2009 To get higher-status partnership Lopes et al, 2009 • To establish alliances and partnerships with larger and higher status firms.…”

“…• She mentions that have utilized the country brand to create positive associations with trustworthiness Lehto, 2015 To show the image of the profession Welter and Kautonen, 2005 To demonstrate standards set by professional associations Welter and Kautonen, 2005 To get external validation Lopes et al, 2009 • To verify her credentials by other ties (e.g., due diligence on a management team or company, verification of specific competencies by involving another expert with domain knowledge)…”

Entrepreneurship as a Calling: A Pilot Study with Aspiring Entrepreneurs

“…Pollack, Rutherford and Nagy (2012), for instance, claim that scholars know little about what behaviours entrepreneurs actually use to acquire financial resources for their new ventures. Lopes, Cunha and Palma (2009) go further and argue that there is no theoretical synthesis or framework explaining how entrepreneurs maximise their ability to attract resources from relevant resource holders. This is surprising, given that the process of building a new venture is not a mere question of what resources are needed but rather, and most importantly, of how to mobilise them.…”

“…Although network-based research in entrepreneurship began more than 20 years ago (Hoang & Antoncic, 2003), there is little knowledge of the strategies actually used by entrepreneurs to obtain external resources and overcome the liability of newness and the lack of legitimacy. The work of Lopes et al (2009), however, provides a framework on what entrepreneurs do to attract the resources they need for new venture establishment. This framework outlines two different resource acquisition strategies that are available to entrepreneurs.…”

“…The present study aims to advance these lines of research by understanding the impact of the way entrepreneurs experience their work on their ability to attract resources from others. Based on the dual route of resource attraction framework proposed by Lopes, Cunha and Palma (2009), the goal of the present study is to examine how entrepreneurial work orientations affect the strategies that aspiring entrepreneurs use to attract resources and their effectiveness in that resource attraction.…”