Teams that Work Together, Stay Together : Resiliency of Entrepreneurial Teams

In this paper, we extend our previous research by investigating the stability of start-up teams and its impact on reaching operating status. Using the Panel Study of Entrepreneurial Dynamics (PSED), we analyze a nationally representative cohort of nascent entrepreneurs over three observation periods. We measure start-up team stability based on team members being added, replaced, or dropped. We also track team gender and racial composition over time. Confirming our previous findings about the role of homophily, we find active start-up teams to be relatively stable in their gender and racial composition. Further, we show that stable start-up teams are slightly more likely to achieve operational status