Expertise, university infrastructure and approaches to new venture creation: assessing students who start businesses

Abstract

Within the broader literature on contextual determinants of effectual and causal cognitive logics, the paper explores the drivers of causal and effectual reasoning in student-founders of new ventures, particularly focusing on the role of university entrepreneurship-related offerings and student prior business experience. Using the Global University Entrepreneurial Spirit Students’ Survey (GUESSS), the study involves a sample of 2179 student entrepreneurs from 26 countries. Our findings indicate that university entrepreneurship-related offerings such as curricular programming, co-curricular activities, and financial support play a differentiating role in the proclivity towards causal or effectual approaches across the groups of experienced and inexperienced student entrepreneurs. We also provide evidence that effectuation and causation are not mutually exclusive constructs: they are intertwined and can unfold simultaneously.