Table Of Content‘Grounded in both the relevant literature and real-life case studies, this textbook
provides students and early stage entrepreneurs with both a theoretical and
practical foundation for tackling the many challenges they are likely to confront
in establishing and growing a new venture.’
Winthrop Professor John Watson,
The University of Western Australia, Australia
‘An insightful resource book for would-be entrepreneurs.’
Professor Pooran Wynarczyk,
Newcastle University, UK
‘The move away from the heroic concept of the entrepreneur to one that explores
the realities of starting up a business is welcome. The book encourages the
reader to reflect on the key lessons provided from each chapter in a way that
clearly sets out learning objectives supported by case material and sample
discussion questions. Resourcing the Start-up Businessis a refreshing addition
to the postgraduate entrepreneurship catalogue.’
Professor Clare Brindley,
Nottingham Business School,
Nottingham Trent University, UK
‘An insightful and well-timed publication that goes beyond simply guiding the
reader through the resources needed to develop and support entrepreneurs,
focusing instead on embedding dynamic learning capabilities through effective
experiential learning, and stimulating these nascent entrepreneurs to go on to
develop growth-oriented businesses that make a real contribution to economic
development. An essential read that offers a link between an entrepreneur’s
dynamic learning capability when establishing a new venture and the likelihood
that that business will grow.’
David Taylor,
Principal Lecturer in Entrepreneurship,
Manchester Metropolitan University, UK
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Resourcing the Start-up
Business
Starting a business successfully requires numerous skills and resources. The
alarming rate of failure associated with new ventures suggests that potential
entrepreneurs would welcome expert advice at the most vital stage in the life of
any business: the decision to start-up and the first 12 months of operation.
The expert author team focus on those resources, skills, capabilities and
learning processes required by any entrepreneur engaged in starting a new
business. Specifically, this text aims to:
(cid:129) introduce and explain those resources (including finance) that are essential
to successful business creation
(cid:129) identify the key skills and capabilities that are required by entrepreneurs
(cid:129) highlight the ways in which new resources are combined with the entrepre-
neur’s existing resource base to develop the business effectively
(cid:129) explore the way entrepreneurs learn in the process of developing their
business.
Drawing on the most up-to-date and relevant research, this concise textbook
provides students and academics of entrepreneurship with a practical guide to
acquiring the appropriate resources in order to start a new firm.
Oswald Jones is Professor of Entrepreneurship at the University of Liverpool,
UK.
Allan Macpherson is Associate Professor of Management at the University
of Wisconsin-La Crosse, US, and Professor of Organisational Behaviour at
De Montfort University, UK.
Dilani Jayawarna is Senior Lecturer at the University of Liverpool, UK.
ROUTLEDGE-ISBE MASTERS IN ENTREPRENEURSHIP
Edited by Colette Henry and Susan Marlow
The Routledge-ISBE Masters in Entrepreneurship series offers postgraduate
students specialist but accessible textbooks on a range of entrepreneurship topics.
Collectively, these texts form a significant resource base for those studying
entrepreneurship, whether as part of an entrepreneurship-related programme of
study, or as a new, non-cognate area for students in disciplines such as science
and engineering, helping them to gain an in-depth understanding of contemporary
entrepreneurial concepts.
The volumes in this series are authored by leading specialists in their field,
and although they are discrete texts in their treatment of individual topics, all
are united by a common structure and pedagogical approach. Key features of
each volume include:
n A critical approach to combining theory with practice, which educates its
reader rather than solely teaching a set of skills
n Clear learning objectives for each chapter
n The use of figures, tables and boxes to highlight key ideas, concepts and
skills
n An annotated bibliography, guiding students in their further reading
n Discussion questions for each chapter to aid learning and put key concepts
into practice
Entrepreneurship
A global perspective
Stephen Roper
Female entrepreneurship
Maura McAdam
Resourcing the Start-up Business
Creating dynamic entrepreneurial learning capabilities
Oswald Jones, Allan Macpherson and Dilani Jayawarna
Resourcing the
Start-up Business
Creating dynamic entrepreneurial
learning capabilities
Oswald Jones,
Allan Macpherson and
Dilani Jayawarna
RANDOLPH QUIRK
RANDOLPH QUIRK
RANDOLPH QUIRK
RANDOLPH QUIRK
First published 2014
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2014 Oswald Jones, Allan Macpherson and Dilani Jayawarna
The right of Oswald Jones, Allan Macpherson and Dilani Jayawarna to be
identified as authors of this work has been asserted by them in accordance
with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced
or utilized in any form or by any electronic, mechanical, or other means,
now known or hereafter invented, including photocopying and recording,
or in any information storage or retrieval system, without permission in
writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and
explanation without intent to infringe.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
Jones, Oswald.
Resourcing the start-up business: creating dynamic entrepreneurial
learning capabilities/Oswald Jones, Allan Macpherson and Dilani
Jayawarna.
pages cm. – (Routledge-ISBE masters in entrepreneurship)
Includes bibliographical references and index.
1. New business enterprises – Management. 2. Small business –
Management. 3. Business planning. 4. Entrepreneurship. I. Macpherson,
Allan. II. Jayawarna, Dilani. III. Title.
HD62.5.J6585 2013
658.1′1 – dc23
2013008151
ISBN: 978-0-415-62447-3 (hbk)
ISBN: 978-0-415-62448-0 (pbk)
ISBN: 978-0-203-10456-9 (ebk)
Typeset in Perpetua and Bell Gothic
by Florence Production Ltd, Stoodleigh, Devon, UK
Contents
List of figures and tables xiii
Series editors’ foreword xvi
Case examples xviii
1 Introduction: dynamic entrepreneurial learning capabilities 1
1.1 Introduction 1
1.2 Learning objectives 2
1.3 Growing importance of entrepreneurship 2
1.4 A practice-based approach to entrepreneurial learning 6
1.5 Summary and key learning points 10
1.6 Discussion questions 12
2 The changing nature of entrepreneurial theory 13
2.1 Introduction 13
2.2 Learning objectives 14
2.3 Individuals and opportunities 15
2.4 New venture creation processes 18
2.5 The entrepreneurial process 21
2.6 The process of opportunity creation 23
2.7 Summary and key learning points 28
2.8 Discussion questions 30
2.9 Further reading 30
vii
CONTENTS
3 Learning to be an entrepreneur 31
3.1 Introduction 31
3.2 Learning objectives 32
3.3 Models of entrepreneurial learning 33
3.4 Universities and graduate incubation 41
3.5 Role of active learning and simulation 44
3.6 Clubs and societies 47
3.7 Summary and key learning points 49
3.8 Discussion questions 50
4 Knowledge, skills and capabilities 51
4.1 Introduction 51
4.2 Learning objectives 52
4.3 Skills and knowledge: resources at start-up 52
4.4 Developing the opportunity 53
4.5 Managing early stage growth: applying knowledge,
skills and capabilities 55
4.6 Managing others and cultural entrepreneurship 65
4.7 Summary and key learning points 68
4.8 Discussion questions 69
4.9 Further reading 69
5 Networks, social capital and entrepreneurial resources 70
5.1 Introduction 70
5.2 Learning objectives 71
5.3 Social networks 71
5.4 Social capital 75
5.5 Entrepreneurial social capital 80
viii
CONTENTS
5.6 Social capital and resourcing new ventures 82
5.7 Summary and key learning points 85
5.8 Discussion questions 86
6 Resourcing start-up businesses 87
6.1 Introduction 87
6.2 Learning objectives 88
6.3 Resource-based view of the firm 88
6.4 Types of resources 89
6.5 Human capital and entrepreneurship 92
6.6 Accumulation of human capital over the life course 96
6.7 Effects of human capital on entrepreneurial success 99
6.8 Summary and key learning points 101
6.9 Discussion questions 102
6.10 Further reading 103
7 Enhancing tangible resources 104
7.1 Introduction 104
7.2 Learning objectives 105
7.3 Tangible resources 105
7.4 Why is it difficult to finance entrepreneurial ventures?
A theoretical explanation 106
7.5 Different financial sources for new entrepreneurs 107
7.6 Finance and business lifecycle 114
7.7 Variation in financing strategies for different entrepreneurs 115
7.8 Is there a funding gap for entrepreneurs? 118
7.9 Summary and key learning points 120
7.10 Discussion questions 121
ix
