Entrepreneurial Necessities and Managerial Shortfalls of Founders: What Does Entrepreneurship Theory Tell Us?

Abstract

Founding a new firm is a challenging endeavor. However, many founders lack the available skills in particular in early phases of venturing. This paper addresses this managerial gap and employs entrepreneurship theory to understand cause and effect relationships in this context. Against the background of previous empirical surveys and based on a framework consisting of four entrepreneurial functions, namely innovation, risk management, coordination, and arbitrage, the paper presents research propositions that explain the status of competitiveness of the firm.