Entrepreneurs who succeed in obtaining investment funding are those who know that establishing credibility matters a great deal. The authors identify at least four types of action strategies that entrepreneurs use to create the right impression. By skillfully employing several symbolic yet practical actions, entrepreneurs with little previous track record can gain the confidence of resource providers. In the race for scarce resources, more managers would do well to check their own moves against this winning repertoire.

Tools and Frameworks:
The authors suggest a repertoire of actions common to successful entrepreneurs, grouped into four broad categories of behavior: symbolic actions that convey personal credibility; symbolic actions that convey professional organization; symbolic actions that convey organizational achievement; symbolic actions that convey the quality of stakeholder relationships. For each of these categories, the authors give examples of practical actions that carry symbolism, i.e., that communicate compelling storylines and leave lasting impressions, thereby establishing credibility in the eyes of wary resource providers.

Examples Cited:
Seven comparable cases, reflecting a variety of industries, ranging from financial services and tourism to software and renewable energy

Research Basis:
Over the course of three years, the authors repeatedly interviewed a significant sample of entrepreneurs in the U.K. who had launched a venture within the past 18 months or were planning to do so in the next six months. In addition to face-to-face interviews with the entrepreneurs themselves, the authors spoke to key resource providers, such as VC investors, suppliers, employees or board members, in order to find out which specific behaviors made them decide to commit their valuable resources, and which did not.

About the Authors:
Christoph Zott is professor of entrepreneurship at IESE.

Quy Huy is professor of strategy at INSEAD.