Kabbage: an innovative source of short-term business loans

2018 ◽  
Vol 14 (6) ◽  
pp. 716-735
Author(s):  
Michael Ozlanski ◽  
Emma Marie Fleck
Keyword(s):  
Short Term ◽  
Content Type ◽  
Secondary Sources ◽  
Business Press ◽  
Small Business Management ◽  
Start Up ◽  
Tangible Assets ◽  
Wide Range ◽  
Key Drivers ◽  
A Company

Synopsis New entrepreneurial businesses are one of the key drivers of innovation and economic development. However, one of their greatest obstacles is accessing capital, especially since they are often initially unprofitable and lack tangible assets in the first few years of operation. Since debt financing from banks can be difficult for them to obtain, their capacity for growth can be limited. This case introduces students to Kabbage, a company that reduced the barriers associated with start-up and microbusiness lending by using a fully automated, data-driven platform. Kabbage made instant decisions on whether these businesses should qualify for a line of credit by reviewing its clients’ electronic data, analyzed quickly and accurately using specific algorithms. Research methodology Given the applied nature of the case, the data were gleaned from a wide range of secondary sources, specifically popular business press which was verified for authenticity. Relevant courses and levels This case can be used in a variety of undergraduate courses. Some course examples include small business management, introduction to entrepreneurship or entrepreneurial finance.

scholarly journals British law on corporate bribery

2015 ◽  
Vol 22 (1) ◽  
pp. 16-27 ◽  
Author(s):  
Jonathan Mukwiri
Keyword(s):  
Criminal Liability ◽  
Company Law ◽  
Content Type ◽  
Secondary Sources ◽  
Regulatory Strategy ◽  
Regulatory Approach ◽  
Corporate Criminal Liability ◽  
Corporate Liability ◽  
A Company

Purpose – This paper aims to assess the effectiveness of the Bribery Act 2010 in curbing corporate bribery. Design/methodology/approach – The paper takes a doctrinal focus in assessing UK bribery law using both primary and secondary sources. Findings – This paper finds that the effectiveness of the Bribery Act 2010 in curbing bribery lies in its approach of changing the basis for corporate criminal liability from focusing on the guilt of personnel within the company to focusing on the quality of the system governing the activities of the company. Companies have to address the risks of bribery or risk facing liability for failure to prevent bribery. With its regulatory approach to corporate liability, coupled with its extraterritorial reach, the Bribery Act is likely to change business cultures that facilitate bribery, thereby proving an effective law to corporate bribes. Originality/value – This paper highlights the deficiency of earlier laws in tackling corporate bribery, examines the crime of bribery from a company law perspective and argues that the regulatory strategy in the Bribery Act is likely to be an effective tool against bribery.

scholarly journals How entrepreneurs think: financial decisions for the long or short term

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jonas Debrulle ◽  
Johan Maes ◽  
Elliroma Gardiner
Keyword(s):  
Intrinsic Motivation ◽  
Business Performance ◽  
Extrinsic Motivation ◽  
Structured Interviews ◽  
Short Term ◽  
Return On Assets ◽  
Content Type ◽  
Financial Decisions ◽  
Start Up ◽  
New Business

Purpose The purpose of this paper is to suggest that different start-up motivations make entrepreneurs pursue different kinds of new business performance, which in this study are expressed in financial terms (i.e. return on assets). The authors posit that so-called extrinsic motivation urges entrepreneurs to be more short-term oriented, while their intrinsic motivation encourages a longer-term business vision. Additionally, this paper explores how intrinsic and extrinsic entrepreneurship motivations combine and produce financial dilemmas for entrepreneurs. Design/methodology/approach The analyses are based on 300 entrepreneurs across diverse industries in Belgium. Data was collected for this study through structured interviews with entrepreneurs combined with a company questionnaire. Financial data was obtained through a government database. Findings Results confirm that extrinsic entrepreneurship motivation boosts new business short-term financial performance, whereas intrinsic motivation contributes to the firm’s longer-term financial returns. This paper also shows that a mix of intrinsic and extrinsic motivations directs entrepreneurs toward different profitability levels during the organization’s survival and early-establishment phase. Originality/value Research on entrepreneurship has not yet corroborated that motivations can be personally conflicting, thereby saddling the entrepreneur with dilemmas that may manifest into different levels of business performance.

Qatar Airways: building a global brand

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdulla Hamad MA Fetais ◽  
Osama Sam Al-Kwifi ◽  
Zafar U Ahmed ◽  
Dang Khoa Tran
Keyword(s):  
Airline Industry ◽  
Study Data ◽  
Aviation Industry ◽  
Consumer Experience ◽  
Content Type ◽  
Secondary Sources ◽  
Global Brand ◽  
Wide Range ◽  
Consumer Orientation ◽  
Internationalization Strategies

PurposeIn 2017, Qatar Airways was recognized as the world's number-one airline by SKYTRAX World Airline Awards. These international awards have been described as “the Oscars of the aviation industry,” reflecting global recognition and excellence in conducting business activities at the international level. The main purpose of this case-based research is to explore and evaluate the internationalization strategies employed by Qatar Airways in becoming known as one of the best airlines in the world.Design/methodology/approachIn accordance with the nature of this study, data were collected by interviewing managers from Qatar Airways as well as by exploiting supporting materials from secondary sources and airline-specific records. The recorded interviews were analyzed via content analysis to define airline strategies aimed at expanding globally and building a global brand.FindingsThe findings reveal that Qatar Airways has adopted effective strategies that have facilitated its aggressive global expansion and enhanced its global consumer recognition – mainly as a fast-growing network connecting important destinations that maintains a focused consumer orientation dedicated to providing an optimal travel experience. These strategies have been focused on building a superior consumer experience marked by exceptional comfort.Practical implicationsQatar Airways' implementation of internationalization strategies in the airline industry represents an innovative approach marked by efficient operations and high-quality standards. Both international business managers and academics can learn from these strategies and their implications for enhancing airlines' global reputation and overall quality performance.Originality/valueUnlike other research studies that investigate a wide range of firms across industries, this study focuses on exploring the factors that support the successful internationalization of a single firm, thus providing in-depth understanding of specific strategies to achieve global recognition. This study provides unique insights to analyze strategies and assess their practical relevance.

My name is bond, Pecorino Bond

2020 ◽  
Vol 122 (4) ◽  
pp. 1040-1055
Author(s):  
Paola Paoloni ◽  
Giuseppe Modaffari ◽  
Niccolò Paoloni
Keyword(s):  
Small Island ◽  
Future Research ◽  
Growth Strategies ◽  
Food Sector ◽  
Content Type ◽  
Credit Access ◽  
Agricultural Enterprises ◽  
Start Up ◽  
A Company

PurposeThe aim of this paper is to analyze how “mini-bonds,” an innovative financial tool for Italian small and medium-sized enterprises (SMEs), can contribute to the development and sustainability of the agri-food sector and its local products, such as Pecorino Cheese.Design/methodology/approachThe study was conducted as a qualitative case study applying the CAOS (“characteristics, ambience, organization, start-up”) model. This model makes it possible to describe all variables that affect a company in a given economic context.FindingsIn Sardinia, a small island to the southwest of Italy, there are more than 60,000 agricultural enterprises, 60 percent of which are shepherding operations. Obtaining financial resources is a constant challenge, often related to the uncertainties inherent in seasonal activities. This paper explores how a mini-bond was implemented to promote the development and sustainability of Pecorino Cheese.Research limitations/implicationsLimitations are chiefly related to the short observation period—the bond was first issued in 2018—and to the narrow geographical base of observation.Originality/valueThis research contributes to the expanding body of literature on innovative financial tools for the promotion and development of the local agri-food heritage. It may be useful to practitioners currently researching and developing growth strategies for companies. Existing barriers to credit access are among the most important causes of the lack of development of SMEs, especially in Italy where SMEs represent the principal type of new businesses in the agri-food sector, and their economic success is so dependent on seasonality. In February 2019, the Pecorino case played a role in the Italian government stepping in to avoid the collapse of the price of milk. Future research will focus on the analysis of specific economic results of the financial operations described herein, and will further focus on possibly similar cases of local products making use of innovative financial tools.

Comfort and shelter for all: a case of an entrepreneurial firm

2017 ◽  
Vol 9 (3) ◽  
pp. 333-347 ◽  
Author(s):  
Manoj Joshi ◽  
Shailja Dixit ◽  
Amit Sinha
Keyword(s):  
Financial Services ◽  
Customer Orientation ◽  
Time Frame ◽  
Social Needs ◽  
Multiple Sources ◽  
Content Type ◽  
Secondary Sources ◽  
Entrepreneurial Firm ◽  
Start Up ◽  
Secondary Information

Purpose The purpose of this case study is to explore enterprise creation and explore the entrepreneurship process, which necessitates entrepreneurial recognition and entrepreneurial orientation. The case also investigates how an entrepreneurial firm appreciates the importance of innovative practices for an organisational growth. Design/methodology/approach The case is based on primary research, secondary information, followed by testing the case several times and plugging case gaps. To authenticate information, multiple sources have been used in a time frame of over one year. Findings This case clearly demonstrates ability by an entrepreneur towards opportunity recognition, pro-activeness, engaging innovative skills and a capacity to undertake risks. Research limitations/implications The findings are based on observations of one company and research carried through secondary sources, which may limit the theory creation. Practical implications The accomplishment of the firm is attributed in accepting opportunities and potentially utilising its strengths towards growth. The case reflects, how Ajay, the founder of a Start-up ‘Comfort and Shelter’, intrinsically motivated and with prior knowledge in the financial services sector, was able to translate opportunities effectively via his orientation skills. Besides this in his entrepreneurial journey, Ajay was able to scale the business by continuously orienting his start-up towards customer orientation. Social implications It is imperative to understand social needs of individuals, hereby in this case need for affordable homes. An entrepreneur can be driven by social needs and create a profitable enterprise. Originality/value The case is original and reflects entrepreneurial journey of an individual as well as that of an enterprise.

Private Equity and Distressed Debt Funds Emerging Role in Preventing and Participating in Restructurings

2017 ◽  
Author(s):  
Christopher Mallon ◽  
Shai Y. Waisman ◽  
Ray C. Schrock
Keyword(s):  
Private Equity ◽  
Early Stage ◽  
Leveraged Buyouts ◽  
Subordinated Debt ◽  
Investment Activity ◽  
Track Record ◽  
Development Cycle ◽  
Start Up ◽  
Wide Range ◽  
A Company

Private equity (‘PE’) investment and distressed debt investment covers a wide range of investment activity by pooled investment vehicles (ie, funds) in privately or publicly (through ‘take-private’ transactions or IPO’s) owned companies, using capital raised from institutional investors that are limited partners of the funds. Such investment activity can be broadly categorized according to the point at which the investment is made within the typical development cycle of a company: (i) initial venture capital provides seed capital for start-up businesses; (ii) growth capital assists early-stage companies with the growth of their operations; (iii) mezzanine financing, comprising the contribution of subordinated debt or preferred equity, provides further capital to more established businesses; (iv) leveraged buyouts (‘LBOs’) are pursued to acquire portfolio businesses with a proven track record of sales and financial performance; and (v) distressed debt investing (the focus of this chapter) which provides support to companies that are in financially precarious positions.

A relational view of start-up firms inside an incubator: the case of the ARCA consortium

2018 ◽  
Vol 21 (4) ◽  
pp. 601-619 ◽  
Author(s):  
Davide Di Fatta ◽  
Francesco Caputo ◽  
Gandolfo Dominici
Keyword(s):  
Design Methodology ◽  
Single Case ◽  
Research Approach ◽  
Short Term ◽  
Collaborative Relationships ◽  
Content Type ◽  
Start Up

Purpose Analyzing the entrepreneurial ecosystem related to the ARCA consortium, the purpose of this paper is to study the relationships among the start-up firms inside an incubator. Design/methodology/approach Thanks to the adoption of the relationships concentric model and the density concentric model, the paper highlights the role of relational conditions for innovative projects in partnership among the incubated firms. Reflections herein are tested via a qualitative research approach based on a single case study: the ARCA consortium. Findings This research found that about 32 percent of relationships inside the incubator support the emergence of short-term relationships among the incubated firms. Furthermore, about 18 percent of the relationships support the emergence of strong collaborative strategies for the implementation of long-term relationships resulting in innovative pathways: innovative projects in partnership. Originality/value The most interconnected firms inside the incubator are those that play a central role also in the innovation pathway developing the higher number of innovative project in partnership. This finding emphasizes a correlation between collaborative relationships and innovation inside an incubator ecosystem.

scholarly journals Performance management in social impact bonds: how an outcomes-based approach shapes hybrid partnerships

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruth Dixon
Keyword(s):  
Performance Management ◽  
Social Impact ◽  
Cultural Theory ◽  
World Views ◽  
Content Type ◽  
Secondary Sources ◽  
Study Approach ◽  
Wide Range ◽  
Social Impact Bonds ◽  
Cultural World

PurposeThis paper investigates how outcomes-based performance management (PM) regimes operate in the partnerships known as social impact bonds (SIBs), which bring together partners from the public, private and third sectors. The findings are analysed in the light of the different cultural world views of the partners.Design/methodology/approachPublished evaluations of 25 UK SIBs were analysed by a qualitative multiple case study approach. This study of secondary sources permitted the analysis of a wide range of SIB partnerships from near contemporary accounts.FindingsOutcomes frameworks led to rigorous PM regimes that brought the cultural differences between partners into focus. While partnerships benefitted from the variety of viewpoints and expertise, the differences in outlook simultaneously led to strains and tensions. In order to mitigate such tensions, some stakeholders conformed to the outlooks of others.Practical implicationsThe need to achieve a predefined set of payable outcomes embeds a “linear” view of intervention and effect on the SIB partners and a performance regime in which some partners dominate. In designing accountability systems for partnerships such as SIBs, commissioners should consider how the performance regime will affect the interests of all stakeholders.Originality/valueThis study adds to the cultural theory literature which has rarely considered three-way partnerships embodying hierarchical, individualist and egalitarian world views and how performance regimes operate in such partnerships. Three-way partnerships are thought to be rare and short-lived, but this empirical study shows that they can be successful albeit over a predefined lifespan.

scholarly journals Assessing the impact of market logic and long-term strategic plans of top management in share buyback decisions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Istemi Demirag ◽  
Thanamas Kungwal ◽  
Yassine Bakkar
Keyword(s):  
Short Term ◽  
Content Type ◽  
Strategic Objectives ◽  
Strategic Plans ◽  
Wide Range ◽  
Corporate Goals ◽  
The Impact ◽  
Depth Interviews ◽  
Term Management

PurposeThis paper investigates stakeholders' perspectives of share buybacks in the context of time-horizons of investment decisions and strategy.Design/methodology/approachWe use in-depth interviews with stakeholders from eight listed UK firms as well as examine their publicly available data.FindingsFindings suggest that share buybacks involve a wide range of stakeholders' rational interests and long-term management perspectives as they enable firms to strategise operational plans towards their long-term corporate goals.Research limitations/implicationsThe findings are based on interviews with a small number of share buyback firms and the findings, therefore, may not be generalised to all firms.Practical implicationsThe results show that share buybacks may be part of the long-term interests of firms and not necessarily used as part of short-term EPS increases as suggested in the extant literature.Originality/valueThe findings contribute to the literature on corporate pay-out policies in the context of short-term financial objectives vs long-term strategic objectives of stakeholders. They show that share buybacks can be an important part of firms' long-term strategic considerations.

Spit guards, ethical policing and the need for an evidence-based approach

2018 ◽  
Vol 17 (3) ◽  
pp. 145-155 ◽  
Author(s):  
Peter Joyce ◽  
Wendy Laverick
Keyword(s):  
Police Officers ◽  
Grey Literature ◽  
Primary Source ◽  
Evidence Base ◽  
Evidence Based ◽  
Content Type ◽  
Secondary Sources ◽  
Advantages And Disadvantages ◽  
Wide Range ◽  
The Uk

Purpose The purpose of this paper is to assess the advantages and disadvantages of the use of spit guards by police forces in the UK and to make recommendations regarding an evidence-based approach to decisions related to the use of such equipment. Design/methodology/approach The paper is based upon an examination of a range of primary source material, secondary sources and grey literature. Findings Although the use of spit guards can be justified by factors that include the need to protect police officers from contracting serious infectious diseases, there are a number of problems that concern ethical policing and human rights. Concerns arise when spit guards are deployed against vulnerable individuals, are used offensively rather than defensively and when such equipment is deployed disproportionately against persons from Black and Minority Ethnic (BME) communities. Additionally, the image of the police may suffer if spit guards are accompanied by the use of excessive force which may be perceived as an abuse of police power. Practical implications The paper makes recommendations that a comprehensive evidence base is required to assist practitioners to make informed decisions regarding the deployment of spit guards. This evidence base should include the extent to which officers are spat at, medical evidence relating to spitting and the transmission of serious diseases, the views of the public concerning the deployment of spit guards and estimations as to whether such equipment will deter spitting by suspects of crime. Originality/value This paper provides an original academic contribution to the ongoing debate on the use of spit guards within policing. In particular, it brings together a wide range of material that relates to this topic and presents it as a coherent set of arguments located in a single source.

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