University of Twente Student Theses
How Economic Background Affects Decision-Making in Incubated Entrepreneurs : Focus on Affordable Loss
Bouic, J.B. (2024) How Economic Background Affects Decision-Making in Incubated Entrepreneurs : Focus on Affordable Loss.
|
PDF
991kB |
| Abstract: | This research investigates how the economic backgrounds of university-incubated entrepreneurs influence their decision- making styles. The research focuses on effectual and causal approaches and especially the role of the affordable loss principle. Using a qualitative methodology with semi-structured interviews with entrepreneurs from various university incubators in the Netherlands, the study reveals that incubator programs predominantly support a causal decision-making style through structured tools, mentorship, and strategic planning. On the other hand, they support effectual strategies by allowing entrepreneurs to pivot based on network and market feedback, creating a balance between structured planning and adaptability. Economic backgrounds seem to strongly influence decision-making styles, with young entrepreneurs gravitating towards effectual decision-making and the affordable loss principle. These entrepreneurs creatively leverage personal savings, part- time jobs, and minimal resources to pursue ventures. Additionally, while entrepreneurs from both lower and moderate financial resource backgrounds seem to make use of the affordable loss heuristic, those from lower financial backgrounds tend to use more extreme affordable loss measures, like early equity sales. In contrast, entrepreneurs with moderate financial backgrounds leverage their resources without selling shares, employing less extreme affordable loss measures. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | International Business Administration BSc (50952) |
| Link to this item: | https://purl.utwente.nl/essays/103317 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
Show download statistics for this publication
Show download statistics for this publicationRepository Staff Only: item control page