scholarly journals Entrepreneurship and Venture Capital

2003 ◽  
Vol 28 (1) ◽  
pp. 99-112 ◽  
Author(s):  
I M Pandey ◽  
Rajesh Nair ◽  
Dinesh Awasthi ◽  
Kaushal Mehta ◽  
Vishnu Varshney ◽  
...  
Keyword(s):  
Venture Capital ◽  
Education System ◽  
Critical Mass ◽  
Panel Discussion ◽  
Venture Capitalists ◽  
Risk Capital ◽  
Public And Private ◽  
Entrepreneurship Development ◽  
Global Competitiveness

Entrepreneurship is the driver of growth. It helps creating innovative enterprises which provide foundation for building a nation's competitiveness. Enterprise creation needs risk capital. Venture capitalists provide risk capital and facilitate the development of entrepreneurship. There are several issues relating to entrepreneurship development and venture capital that deserve serious discussion. To put these issues into perspective, the Centre for Innovation, Incubation, and Entrepreneurship and Entre Club at IIMA organized a panel discussion which was coordinated by I M Pandey, Professor at Indian Institute of Management, Ahmedabad. Some of the key questions that the panel has addressed to are: What is the contribution of entrepreneurship in the economic development of India? What factors have facilitated or hindered the development of entrepreneurship in India? What role has venture capital played in fostering the growth of entrepreneurship in India? What do entrepreneurs look for from venture capitalists other than the capital in the growth of their enterprises? What are the experiences of venture capitalists and entrepreneurs vis-a-vis the interface between venture capital and entrepreneurship? The following are some important points that emerged from the panel discussion: There is a direct link between entrepreneurship and the economic growth. There is some evidence that entrepreneurship has made contribution to India's growth. Factors responsible for the slow growth of entrepreneurship and lack of innovative spirit included the faulty education system, absence of proper incentives and environment to innovate, lack of proactive and favourable government policies, non-availability of risk capital, and the Indian mindset favouring comfortable and secured career choices. Entrepreneurship is a prerequisite for building our nation's global competitiveness. There is no short-cut. The liberalization of the Indian economy and the increased access to the global capital have paved way for entrepreneurship development and for facing international competition. The role of venture capital in fuelling the growth of entrepreneurship is inevitable. Venture capitalists need to play a proactive role. The Indian experience shows that venture capital is capable of creating a facilitating environment to build entrepreneurship culture and help entrepreneurship develop as a preferred career option. Venture capitalists should play the dual role of financiers and mentors. They should facilitate the networking of entrepreneurs with customers, distributors, financial institutions, consultants, etc. Efforts should be made by public and private sectors to create critical mass of venture capital funds, especially to finance start-ups and ventures of the first-time entrepreneurs. The education system in India should focus on developing entrepreneurship skills and risk-taking abilities of students.

scholarly journals The Impact of Venture Capital on the Growth of Small- and Medium-Sized Enterprises in Agriculture

2020 ◽  
Vol 2020 ◽  
pp. 1-8
Author(s):  
Junjuan Du ◽  
Zheng-Qun Cai
Keyword(s):  
Venture Capital ◽  
Evaluation Model ◽  
Multivariate Regression Analysis ◽  
Venture Capitalists ◽  
Enterprise Growth ◽  
Market Opportunities ◽  
Using Data ◽  
Entrepreneurial Activities ◽  
The Impact

Small- and medium-sized enterprises (SMEs) are considered to have potential innovation capabilities and can create new market opportunities. Venture capital can financially support entrepreneurial activities for economic growth and governs and nurtures the growth of the SMEs. The aim of this study is to investigate the influence mechanism of venture capital on the development of SMEs in agri-food industry. Based on the enterprise growth theory, this study constructed an evaluation model, consisting of technological innovation, profitability, development capability, and solvency, to examine the effect of venture capital on the growth of agricultural SMEs. Using data of 40 agricultural SEMs from the SME and ChiNext boards in China, the empirical analysis has been conducted with the multivariate regression analysis method. The results show that the venture capital can significantly improve the technology innovation, profitability, and growth ability of SMEs. For the solvency of SMEs, the promoting role of venture capital is not obvious. Finally, the practical implications of this study for venture capitalists, entrepreneurs, and regulators are discussed.

scholarly journals Innovation, Incubation, and Incubator

2003 ◽  
Vol 28 (2) ◽  
pp. 89-94 ◽  
Author(s):  
Pankaj Chandra ◽  
Sandeep Srivastav ◽  
Bipin Shah
Keyword(s):  
Risk Sharing ◽  
Panel Discussion ◽  
Knowledge Network ◽  
Venture Capitalists ◽  
Promotional Effort ◽  
Promotional Efforts ◽  
The Difference ◽  
High Degree ◽  
Technology Marketing

This panel discussion was a part of a programme ‘From Incubation to Enterprise’ which was conducted by Indian Institute of Management, Ahmedabad's (IIMA) Centre for Innovation, Incubation, and Entreprenuership (CIIE) on January 4, 2003. Professor Pankaj Chandra of IIMA led the discussion. The distinguished panelists were Mr Sandeep Srivastav and Professor Bipin Shah. Their experience and insight on the subject helped in understanding the process of incubation leading to enterprise. The panel discussion addressed the following questions: What is incubation? What is innovation? What is the process of incubation that is needed for commercializing an innovation? What role does an incubator play? The following important points were made by the panelists: An innovative entrepreneur should adapt to the demand of the market. The adaptation may be with regard to technology, marketing, business idea or business plan. The concept of incubation originated from the medical field. The concept of incubators is applied more to project ideas which have a high degree of uncertainty. The aim of the incubators is to facilitate the survival of such companies and also to nurture these companies for growth and success. Incubators play the role of risk-sharing and providing credibility to an idea as it progresses from being an idea to some kind of product. It minimizes uncertainty and increases the success rate of an enterprise that is at a very nascent stage. The difference among promotional efforts and hand-holding is that promotional effort is the assistance given for setting up a business whereas, in an incubator, it is more of hand-holding. The biggest benefit of being in an incubator is that it insulates you from the outside environment and hence an innovator can just concentrate on getting his idea fool-proof for the market. Incubators even provide the network, linking the innovators with societal resources. The network is of two kinds - knowledge network and social network. The role of venture capitalists in enterprise building is to provide linkages for a budding entrepreneur. But not many people are ready to give money at an idea level Professor Pankaj Chandra concluded the discussion by saying that the incubator is not just for supporting the innovator but also for ensuring that the idea is converted into an enterprise.

scholarly journals Entrepreneurial Passion and Venture Capitalists’ Willingness to Invest: The Role of Relational Capital

2021 ◽  
Vol 12 ◽  
Author(s):  
Hongtao Yang ◽  
Hangyu Shi ◽  
Yenchun Jim Wu ◽  
Lei Zhang ◽  
Shuting Xie
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Conflicts Of Interest ◽  
Positive Impact ◽  
Relational Capital ◽  
Venture Capitalists ◽  
Venture Capital Investment ◽  
Entrepreneurial Passion ◽  
The Relationship

Venture capital investment has serious conflicts of interest and information asymmetry. Venture capitalists often make investment decisions on the basis of the passion of entrepreneurs, including enthusiasm and preparedness, in the process of interacting with them. Most of the previous research on relational capital have focused on the cooperative relationship between suppliers and buyers. However, the role of relational capital in the process of partnership between venture capitalists and entrepreneurs has not been revealed. On the basis of signaling theory, we explore the relationship between entrepreneurial passion and venture capitalists’ willingness to invest. We also examine the mediating and moderating roles of relational capital. This study takes 79 projects between venture capitalists and entrepreneurs as samples for empirical analysis to verify our hypothesis. Results show that entrepreneurs’ enthusiasm and preparedness have a significant positive impact on venture capitalists’ willingness to invest. Relational capital plays a mediating role between entrepreneurial passion and venture capitalists’ willingness to invest. Relational capital positively moderates the relationship between preparedness and venture capitalists’ willingness to invest but has no moderating effect between enthusiasm and venture capitalists’ willingness to invest. Results deepen the understanding of the relationship between entrepreneurs’ passion and venture capitalists’ willingness to invest, which has guiding significance for venture capital practice in China.

scholarly journals The Role of Venture Capital and Private Equity in the Entrepreneurial Finance Ecosystem

2020 ◽  
Author(s):  
Petra Katic ◽  
◽  
Dina Vasic ◽  
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Web Of Science ◽  
Venture Capitalists ◽  
Entrepreneurial Finance ◽  
Journal Articles ◽  
Equity Financing ◽  
Critical Data ◽  
Literature Reviews

This paper researches the role of venture capital and private equity in the entrepreneurial ecosystem by reviewing the literature within that domain. The existing literature, studies and other literature reviews are included in this paper to learn if there is a progress in the field and to collect the most critical data regarding venture capital and private equity in entrepreneurial finance. An analysis is limited to scholarly journal articles and reviews published during the last five years (2014 – 2019) and available within the ISI Web of Science database. To detect current themes in the field, we performed a bibliometric analysis of entrepreneurial equity financing research. By dividing the literature into four clusters that are presenting the main findings within the area, this study provides a better understanding of venture capital and other sources of entrepreneurial funding. The results of this study indicate that the essential benefit that venture capitalists offer to entrepreneurs after financing consists of their involvement, monitoring and advising. This paper highlights the main points that can assist entrepreneurs in understanding the role of venture capital better.

scholarly journals Revisiting The Certifying Role Of Financial Intermediaries On IPOs

2012 ◽  
Vol 28 (5) ◽  
pp. 1017 ◽  
Author(s):  
Kyojik Song ◽  
Young-Soo Choi ◽  
Jong Eun Lee
Keyword(s):  
Venture Capital ◽  
Commercial Banks ◽  
Small Firms ◽  
Investment Banks ◽  
Venture Capitalists ◽  
Bank Debt ◽  
Ipo Underpricing ◽  
Partial Adjustment ◽  
Complementary Role

This paper re-examines the role of commercial banks, investment banks, and venture capitalists in monitoring and certifying the value of the firms that went public in the 2000s. We find that investment banks that have better reputations are associated with larger underpricing for venture-capital-backed IPOs, but not for non-venture-capital-backed IPOs. The partial adjustment phenomenon observed in Carter et al. (2001) exists only for venture-capital-backed IPOs. The presence of venture capital is inversely related to IPO underpricing only when venture capitalists certify small firms. We do not find that the presence of bank debt reduces IPO underpricing. In addition, we do not find any substitutive or complementary role between commercial banks and venture capitalists in certifying IPOs.

Risk capital constraints to innovation in services

2014 ◽  
Vol 29 (6) ◽  
pp. 476-486 ◽  
Author(s):  
Mark Freel ◽  
Paul J. Robson ◽  
Sarah Jack
Keyword(s):  
Venture Capital ◽  
Innovation Policy ◽  
Service Firms ◽  
Risk Capital ◽  
Business Services ◽  
Multivariate Statistical ◽  
Innovation Studies ◽  
Content Type ◽  
Advanced Economies

Purpose – This paper aims to understand the factors associated with perceptions of venture capital as a barrier to innovation in an important subset of knowledge-intensive service firms – technology-based business services. A general and longstanding neglect of services in studies of innovation and a common focus of innovation studies on the availability of, and demand for, risk capital has been noted. Design/methodology/approach – In exploring these issues, the authors draw on survey data collected from 264 technology-based service firms located in Scotland and Northern England. The data are subjected to bivariate and multivariate statistical analyses to help explore the extent of demand-side risk capital concerns. Findings – It was found that smaller, faster growing and R&D-intensive firms perception greater equity barriers. Moreover, firms who are relatively happy about the managerial competencies available to them, but who identify deficiencies in marketing skills and the availability of external debt finance (which may say something broadly about their financial neediness), are shown to be “needy”. Originality/value – Studies of venture capital demand are relatively rare. Studies involving innovative service firms are rarer still. Given the prominent role of service firms in advanced economies and the changing perspective of the role of services in innovation, studies of financial constraints to innovation in services are timely. Innovation policy in advanced economies continues to be premised on patterns identified in manufacturing industries. This paper contributes to a broader perspective that views [technology-based] business services as dynamic innovation actors.

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