Friends, Family, or Fools: Entrepreneur Experience and its Implications for Equity Distribution and Resource Mobilization

• Main Authors: KOTHA, Reddi, GEORGE, Gerard
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: Equity Distribution; Resources; Specific Experience; Entrepreneurial and Small Business Operations; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3625; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4624/viewcontent/FriendsFamilyFools_2012.pdf
• Institution: Singapore Management University

Who helps entrepreneurs raise the resources they need and how much equity does an entrepreneur distribute in return? We use a sample of 611 entrepreneurs in the U.S. to examine why some entrepreneurs are more likely than others to distribute ownership selectively to helpers. We find that entrepreneu...