The Importance of the Business Idea for New Venture Creation in the Software Industry

Entrepreneurial activity, especially the creation of new companies in the growing information and communication technology sector, is of high importance to foster an economy's growth. However, despite calls for research to investigate why young people decide to start their own business, there is a lack of research to identify the role of the Business Idea in this context. In this paper, we conceptualize the construct "Business Idea" and test its influence on the intention to start a company in the software industry by drawing on the Theory of Planned Behavior. Empirical evidence from a survey among information technology students (N=402) shows that the Business Idea is a major driver for the intention to found a company. The study thus contributes to a better understanding of the factors driving the intention to start a new company in general and the Business Idea's importance in particular.