management
& marketing
Challenges for the Knowledge Society
ISSN 2069–8887
ISSN-L 1842-0206
The official journal of the
Society for Business Excellence
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Management & Marketing no. 1/2013

Challenges of entering the business market: The pre-entry knowledge and experience
Abstract. In any national economy entrepreneurial entry serves to transform and revitalize markets and industries, thereby enhancing their competitiveness. Existing empirical research suggests that the pre-entry knowledge of the market and the entrepreneur’s prior practical and managerial experience will influence the new venture’s chances of survival and its future growth. The current paper emphasizes the key role that the entrepreneur has on the market entry as this entry influences business survival, growth or exit. In the paper we seek to better understand the relationship between the pre-entry knowledge and experience and the new venture’s success, by performing an in-depth analysis of the specialized literature. We argue that the pre-entry knowledge should be assessed against three key perspectives: (1) personal characteristics of the entrepreneur, (2) knowledge about the business activity, the market and the industry, and (3) resources at entrepreneur disposal. Also, the pre-entry experience can contribute to development of three categories of skills in an entrepreneur, such as: (1) functional skills – ability to perform various managerial functions, (2) relational skills – ability to work with external actors, and (3) resource management skills – ability to effectively identify and allocate scarce resources.
Keyword: business entry, entrepreneurial company, pre-entryplanning, pre-entry knowledge, preentry experience.
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