Title: The young, the fast and the furious: a study about the triggers and impediments of youth entrepreneurship
Authors: Willem Hulsink; Daan Koek
Addresses: Department of Strategic Management and Entrepreneurship, Rotterdam School of Management, Erasmus University, P.O. Box 1738, NL-3000 Rotterdam, The Netherlands ' Department of Strategic Management and Entrepreneurship, Rotterdam School of Management, Erasmus University, P.O. Box 1738, NL-3000 Rotterdam, The Netherlands
Abstract: Existing literature argues that young entrepreneurs lack the human, financial and social capital to establish a growing business. Since opportunity costs for them are low, there are also a few triggers for start-up entrepreneurship, which brings us to our research question: What are the triggers for starting a business at a young age and how do young entrepreneurs mitigate the lack of education, experience, knowledge and other critical resources in the start-up process? Twelve entrepreneurs younger than 25 were interviewed, although they clearly lack the human, social and financial capital needed to start a new business, they do not experience this as a disadvantage. Young entrepreneurs deal with these issues by using bootstrapping and effectuation mechanisms to accommodate financial capital constraints and mobilise social support from their parents and other entrepreneurial family members and friends. By taking part in all kinds of small-scale ventures and by being granted access to additional opportunities and introductions to new customers by senior managers of established companies on the basis of their originality, creativity and energy, young entrepreneurs acquire the experiences and the contacts they need for their next entrepreneurial step.
Keywords: youth entrepreneurship; nascent entrepreneurship; opportunity costs; human capital; social capital; financial capital; bootstrapping; effectuation; young entrepreneurs.
International Journal of Entrepreneurship and Innovation Management, 2014 Vol.18 No.2/3, pp.182 - 209
Available online: 25 Jun 2014 *Full-text access for editors Access for subscribers Purchase this article Comment on this article