Big bets, small wins? Entrepreneurial behavior and ROI

Purpose Researchers into entrepreneurial strategy have overlooked the impact of small vs big investments on a venture's return on investment (ROI). The purpose of this paper is to investigate to what extent does entrepreneurial behavior impact initial investment size and the return on that investment? Design/methodology/approach This investigation summarizes research into entrepreneurial leadership behavior and uses data from longitudinal case studies of four innovative start‐up wine businesses in California, India, and Italy. Findings Investment size and ROI appear to be related to entrepreneurial behavior. Practical implications Lead entrepreneurs must develop both technical competence and social networking skills to achieve small wins, i.e. early if only modest ROI. Originality/value This paper develops a model consisting of several testable propositions to measure the impact of entrepreneurial behavior on ROI.