How can assistance programs create value for entrepreneurs? A grounded theory case study of the Michigan State University Product Center for Agriculture and Natural Resources

Entrepreneurial Assistance Programs (EAPs) have been in existence in the United States since the late 1970s. However, there has not been conclusive evidence that quantitatively measures the value that EAPs provide for their clients. The primary cause for this lack of conclusive evidence is due in part to measurement concerns such as sample selection bias and clustering effects, and in part because of the lack of strong qualitative research that has examined the mechanisms of how EAPs create value for their clients. This research, therefore, has been done in order to shed greater light on the question "how do EAPS create value for their clients?" through a qualitative grounded theory case study approach in order to provide a theoretical framework to address the question of "how much value do EAPS create?" in later research. This was done through using the entrepreneurial process framework developed by Shane (2003) to interpret the results arising out of a case study of one particular EAP: The Michigan State University Product Center for Agriculture and Natural Resources. The results of this research indicate that EAPs can create value for clients by improving their clients' new venture's probability of success and survival through: (1) providing a check on cognitive biases in the strategic decision-making process; (2) assisting in the development of strategy and competitive advantages; (3) assisting to legitimize the new venture; and (4) serving as a direct and as an indirect tie to service providers, resource holders and trading partners.