Entrepreneurial team characteristics that influence the successful launch of a new venture

Abstract

Purpose

The purpose of this paper is to identify the characteristics of an entrepreneurial team that influence the likelihood a new venture will successfully launch.

Design/methodology/approach

This paper uses a sample of prospective start‐up banks that applied for a charter application in Florida between 1996 and 2005. Logistic regression was used to test the hypotheses.

Findings

Analysis suggests that entrepreneurial teams where: the CEO is strongly embedded into the team; no team member holds 10 per cent or more of the firm's total equity; team members have less rather than more industry experience; and more team members have prior founding experience, all point to a successful new venture launch.

Research limitations/implications

This study focuses on start‐up success in a single industry and thus may not be generalizable to other research contexts.

Practical implications

Results suggest that bank regulators in charge approving new bank charters would be well advised to revisit their guidelines and recommendations for prospective new bank founders.

Originality/value

Given the unique regulatory requirements of the US banking industry, the successful as well as failed efforts to launch a new bank can be identified and the “success bias” present in many entrepreneurship studies can be averted.

Citation

Leary, M.M. and DeVaughn, M.L. (2009), "Entrepreneurial team characteristics that influence the successful launch of a new venture", Management Research News, Vol. 32 No. 6, pp. 567-579. https://doi.org/10.1108/01409170910962993