Attributes of accredited entrepreneurs in emerging economies: evidence from Vietnam venture capital-backed start-ups

Abstract

Purpose: This study aims to explore the elements and attributes of accredited entrepreneurs/start-ups by venture capital (VC) in Vietnam, with its emerging start-up environment in the non-Western context. Design/methodology/approach: The data and methods follow an exploratory study using a mixed method with an exploratory sequential design. The qualitative data analysis involved eight initial interviews with various entrepreneur supporters. Following this, a self-designed survey instrument incorporating the interview results was developed. The entrepreneurial founders of 86 early-stage start-ups participated in the survey to confirm several new or adapted quantitative components. Findings: Several variables based on the conceptual model (Aggregate dimensions: Distinctive criteria from local contexts and Alignment with overseas standards) affect the likelihood of success in a professional VC round: a higher-degree founder has a negative effect; the size of the Total Addressable Market in the pitch to VC, the intention to expand overseas and the founder studied at a foreign university in an English-speaking country have positive effects. Originality/value: The conceptual model in this study can extend the research stream on entrepreneurship and VC in emerging economies based on the institutional theory with regulatory, normative and cognitive pillars. Moreover, this study is the first broad research on the relationship between VC funding and entrepreneurs’ characteristics in emerging economies, using hand-collected actual funded start-up data.