Start-Up REsources and Entrepreneurial Discontinuance: The Case of Nascent Entrepreneurs


  • Jianwen (Jon) Liao Illinois Institute of Technology
  • Harold Welsch DePaul University
  • Chad Moutray US Small Business Administration


Built on the resource-based view of the firm, this study addresses two major research questions: (1) what resources are salient in entrepreneurial discontinuance; (2) To what extent, does the impact of resources on the odds of discontinuance vary across the nature of startup between high technology and non-technology? These questions are examined using 830 nascent entrepreneurs from the Panel Study of Entrepreneurial Dynamics (PSED). Overall, we find that not all resources are equally salient, especially when comparing technology-based and non-technology-based nascent entrepreneurs. With the exception of education and managerial experience, human capital has limited influence on discontinuance. Our results lend no support for our social capital hypothesis. Financial capital significantly decreases the odds of discontinuance. Additionally, the odds of discontinuance of technology-based and non-technology-based nascent entrepreneurs are affected by a different set of resources. Implications and future research directions are proposed.


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