Exploring the formation of entrepreneurial teams: the key to rapid growth business?

Abstract

There is ample anecdotal evidence, as well as an emergent body of literature, which examines the role of entrepreneurial teams in the success and growth of businesses. Earlier research by the authors has demonstrated that the core competence required by founding entrepreneurs is the ability to build and manage relationships. Their more recent work suggests that this core competence must be based around a clear vision for the business. In other words, the founding entrepreneur must be able to build a team to deliver the business vision. A review of literature is provided in this paper, offering a definition of the concept and some of the core issues that have to be addressed by entrepreneurs and small firm policies if businesses are to continue growing. This is supported by some preliminary findings from empirical research into how entrepreneurial teams are formed. The paper continues with propositions that can lead to further research in this relatively unexplored field.

Unraveling Entrepreneurial Team Formation: A Qualitative Study Among Funded Ventures

“…Extant literature lists prior experience in the entrepreneurial field, technical expertise, and profound knowledge on a specialty that was missing from the team up to that point among the qualities founders wish their team members to have (Vyakarnam et al, 1999). This article adds resilience, openness to change, good cooperation skills, and passion for the project among the characteristics that might appeal to founders during candidate selection.…”

“…In addition, the temporal evolution of key elements of the entrepreneurial team formation process, namely the founders' selection rationale and social networks (Hoang & Antoncic, 2003;Leung et al, 2006), indicates that at different instances of a venture's trajectory different behavioral patterns might be exhibited. In this regard, Vyakarnam et al (1999) found that the team formation process unravels in two temporal phases; during the first phase team members are found serendipitously or approached through founders' own networks, whereas during the second one new members are acquired through either informal networks or a more standardized recruitment process.…”

“…So far scholars have studied temporal influences in the contexts of new venture formation (Kamm & Nurick, 1993), new venture growth (Adizes, 1979;Greiner, 1998;Kazanjian, 1988), and evolution of entrepreneurial team members (Clarysse & Moray, 2004). In addition, Vyakarnam, Jacobs, and Handelberg (1999) suggest that the entrepreneurial team formation process consists of more than one stage of development and at the same time encourage researchers to pursue "a more in-depth analysis of team formation [and] entry criteria" (p. 163). Following this call along with the indications that derived from interim findings a temporal lens was retrospectively applied to the data collected with the purpose of comprehending the evolving nature of founders' behaviors when forming a team.…”

“…Indeed, an entrepreneurial team can be formed by the lead entrepreneur through partnering with other individuals or through recruiting additional manpower (Ruef et al, 2003). Similarly, Vyakarnam et al (1999) distinguish inner teams, which consist of the partners who started the business, from outer teams, which additionally include subsequent entries to the team. Ben-HafaiedhDridi (2010) argues that when team members are recruited the team formation process involves a compensation agreement among the two parties which is not the case when the team emerges through a partnership.…”

Les entreprises à forte croissance et leur contribution à l’emploi : le cas de la Suède 1987-1996

“…-l'intérêt pour les (petites et moyennes) entreprises à forte croissance a augmenté dramatiquement ces dernières années, en témoingne le nombre d'études récentes sur leurs caractéristiques et occurrence (Blixt, 1997 ;Gundry et Welsch, 2001 ;Johnson, Baldwin et Hinchley, 1997 ;Sexton et Seale, 1997 ;Vyakarnam, Jacobs et Handelberg, 1997) ;…”