Lecture 1

Question 1

What is survival bias and why does it explain why most startups fail?

Answer 1

Survival bias is the focus too heavily on only successful ventures.

Question 2

What are the characteristics of ‘liability of newness’ (Stinchcombe, 1965)?

Answer 2

1) Lack of track records
2) Lack of resources
3) Lack of legitimacy
-> Problems of new ventures

Question 3

What are the two most important variables to explain entrepreneurial intentions according to (Gelderen, 2008)?

Answer 3

1) Entrepreneurial alertness
2) The importance attached to financial security

Question 4

What is entrepreneurial alertness according to (Roundy, 2018)?

Answer 4

Which decision-makers sense and anticipate entrepreneurial opportunities

Question 5

What do (Gelderen, 2008) find about self-employment?

Answer 5

Students first want to gain work experience in an organizational employment setting

Question 6

What is key ingredient for new firm success according to (Agarwal, 2004)?

Answer 6

Industry-specific experience

Question 7

What are the row categories of the Venture Evaluation Matrix?

Answer 7

1) Customer
2) Company
3) Entrepreneur

Question 8

What are the columns in the Venture Evaluation Matrix?

Answer 8

1) Value proposition
2) Industry
3) Strategy

Question 9

What is the paper of (Gelderen et al, 2008) about?

Answer 9

Investigation of entrepreneurial intentions of business students

Question 10

What did (Gelderen et al, 2008) find?

Answer 10

1) Entrepreneurial alertness predicts entrepreneurial intentions
2) The need for financial security is a reversed predictor of entrepreneurial intentions

Question 11

The study by (Gelderen et al, 2008) provides evidence for the usefulness of the TBP in explaining EI -> What is TPB?

Answer 11

Theory of Planned Behavior -> explains human intentions