The impact of entrepreneurs' full-time versus hybrid employment and social connections on new venture survival: a USA–India comparison

Abstract

Purpose

The purpose of this paper is to explore how the entrepreneurs' social connections and types of employment differentially affect the survival of startup firms in the USA and India. Further, the authors analyze the differences during both the early stage and the later stages of new ventures.

Design/methodology/approach

The authors use data from the Global Entrepreneurship Monitor (GEM) database between 2012 and 2014 and examine the hypothesized effects with logistic regression analyses.

Findings

The analysis reveals that an entrepreneur's social connections with other entrepreneurs favor the survival of the focal entrepreneur's early-stage business in the USA. However, social connections are more critical for later-stage ventures in India. During the early stage, new ventures of full-time entrepreneurs are more likely to survive in India, whereas those by hybrid entrepreneurs are more likely to survive in the USA. The differences between the importance of full-time and hybrid entrepreneurs across geographies are less discernible during the later stages of new ventures.

Originality/value

The novelty of this paper is that it demonstrates the significant differences in the way social connections and types of employment (hybrid versus full-time) affect the survival of entrepreneurial firms in the early and later stages. The study also expands the international business literature by shedding new light on country-level differences that affect the survival of new ventures.

Citation

Zhang, X., Gopalakrishnan, S., Roy, R. and Bandera, C. (2023), "The impact of entrepreneurs' full-time versus hybrid employment and social connections on new venture survival: a USA–India comparison", South Asian Journal of Business Studies, Vol. 12 No. 4, pp. 501-517. https://doi.org/10.1108/SAJBS-01-2021-0040