Initial resource assembly in new ventures: Does location matter?

The formation of a new venture requires crucial choices that impact the future success of the firm. An important initial decision is whether or not to start the new venture from home or from a separate location. In this paper, we examine the impact of firm-location decisions on the resource assembly process. Resource assembly is the first step taken by entrepreneurs to begin building a resource base, and it involves gaining ownership or control over resources. Our findings indicate that resource profiles significantly differ by location. In addition, away-based businesses assemble significantly higher counts of physical, financial, and organizational resources.