New venture ideas: an analysis of their origin and early development

One of the requirements for starting a firm is an idea that can be developed into a business opportunity. This paper focuses on the early development of a firm's business idea and the factors that affect this process. The assumption is that the founders of the firm have a core importance in the formulation of the first draft of the idea, but that the continued development and polishing that turns the idea into a business opportunity occurs in interaction with a number of actors in the market such as clients, financiers, suppliers, and other collaboration partners. Five wholly newly started knowledge-intensive firms—A-TV, A-Tech, S-Tire, M-Qon and M-Point, all of whom are spin-offs from Linköping University or from firms—are analysed. The results of the study agree with previous research on business opportunities and ideas and the link to the skills base of the founders, environmental effects, and changes in the idea over time. Practical and theoretical implications of new venture idea development and entrepreneurship training are presented.