Venture Creation Speed and Subsequent Growth: Evidence from South America


  • Joan-Lluis Capelleras is lecturer in the Department of Business Economics at the Universitat Autònoma de Barcelona.

  • Francis J. Greene is associate professor at Warwick Business School, University of Warwick.

  • Hugo Kantis is professor in the Institute of Industry at the Universidad Nacional de General Sarmiento, Argentina.

  • Rodrigo Rabetino is lecturer in the Department of Business Economics at the Universitat Autònoma de Barcelona, Spain.

  • An earlier version of this paper won the JSBM Editors' Choice Award at the 52nd ICSB 2007 World Conference. The authors appreciate the helpful comments from associate editor Julio O. De Castro and two anonymous reviewers. Joan-Lluis Capelleras is grateful for support by the Spanish Ministry of Science and Technology through Project SEJ2007-67737-c03-01. The usual disclaimer applies.

Joan-Lluis Capelleras, Department of Business Economics, Universitat Autònoma de Barcelona, 08193 Bellaterra (Barcelona), Spain. Tel: +34 935814297, Fax: +34 935812555, E-mail:


Though time is an important dimension of the venture creation process, our understanding of why some entrepreneurs are able to act more quickly than others is limited. Equally, not much is known about the relationship between venture creation speed and the subsequent venture growth. In this paper, we use a resource-based perspective to provide insights into the factors that quicken or retard venture creation and to explore how speed impacts on subsequent growth. This is important because the topic remains generally underresearched and because even less is understood about venture creation speed in the context of South American economies. Data were collected from face-to-face interviews with 647 entrepreneurs in Argentina, Brazil, Chile, and Peru. Using a multivariate regression framework, we find that entrepreneurs make use of their human and social capital resources to shape the speed by which their venture is created. Moreover, their perceptions of unfavorable environmental conditions seem to retard venture creation. Findings also suggest that entrepreneurs who take more time to create a more solid resource base tend to receive better growth outcomes. Implications from the findings are discussed.