Portfolio entrepreneurship : general and farm contexts

Abstract

Portfolio entrepreneurs stand for a substantial proportion of new business start-ups. These are current owner-managers who involve themselves in the start-up of new business ventures while still retaining their current business(es). The purpose of this composite thesis is to contribute to the knowledge on portfolio entrepreneurs concerning the role of their experience and resources, developed from their previous and current businesses, in the process of identifying or creating new business opportunities and exploiting these by starting new business activities. The opportunity-based view of entrepreneurship and the resource-based view of the firm were chosen as theoretical platforms.

This dissertation contains an introduction and six separate scientific articles. A triangulation approach has been chosen. The studies utilize four different datasets, of which two are longitudinal quantitative data, one is cross-sectional quantitative data and one is cross-sectional qualitative data. Two of the empirical studies are conducted in a multi-industry and four in a single industry context; the farm sector.

The evidence presented indicates that resource transfer from current businesses to new business activities is a key aspect of portfolio entrepreneurship. Prior knowledge and resources are utilized in the opportunity identification as well as exploitation process, which have consequences for behaviours related to the identification and exploitation of new business opportunities and subsequent venture performance. The resource transfer from current businesses may represent assets as well as liabilities for the new business venture, and may enhance or impair new venture performance.

Evidence from the studies within the farm context indicate that farmers' start-up of additional business activities are more likely to be pulled from entrepreneurial abilities and identified opportunities, than to be pushed from constraints related to farming. Their farm-specific resources and knowledge are often not applicable to new ventures, and therefore new resources have to be acquired. Too much reliance of existing resources are associated with less potential of the ideas identified and lower profitability in the business activities initiated. Policy makers should therefore encourage resource acquisition and learning related to other areas than farming to increase entrepreneurial abilities and opportunities of farmers.