Savanna Combs opened a clothing boutique two years ago. Unfortunately, the boutique failed after 18 months. Savanna attributes the failure of her boutique to that fact that her employees couldn't adjust quickly enough to their new roles and because her boutique lacked a "track record" with outside buyers and sellers, which made it difficult to form partnerships and make sales. Savanna suffered from what research call the:

Question

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The concept of "liability of newness" refers to the challenges that new ventures face due to lack of experience or track record in their industry. Savanna's boutique failed due to its inability to establish partnerships and make sales, which could be traced back to its "liability of newness." Option A ("burden of novelty"), B ("millstone of innovation"), D ("liability of preparedness"), and E ("burden of newness") are not commonly used terms in the context of entrepreneurship research.

Savanna Combs Opened a Clothing Boutique Two Years Ago