scholarly journals Financing Innovation: A Complex Nexus of Risk & Reward

2021 ◽  
Author(s):  
Sourish Dutta
Keyword(s):  
Institutional Environment ◽  
Product Market ◽  
Venture Capitalists ◽  
Entrepreneurial Firms ◽  
Entrepreneurial Finance ◽  
Indian Market ◽  
Ownership Structures ◽  
Economics Of Innovation ◽  
System P ◽  
Innovative Firms

The crucial and growing role performed by different financial intermediaries such as venture capitalists and angel investors as well as more traditional intermediaries such as commercial banks in developing entrepreneurial or innovative firms and boosting product market innovations has led to great research interest in the economics of innovation and entrepreneurial finance. Besides this, there are some important factors or developments which have affected the entrepreneurial finance in general as well as its influence upon different entrepreneurial or innovative firms. Indeed, it is also true that the financial and ownership structures of the different entrepreneurial firms and the legal as well as the institutional environment, in which they operate, itself affects the product market innovations (Chemmanur and Fulghieri, 2014). Therefore, in this paper, I want to target a broad theme i.e. analysis of the mechanisms behind this scenario, especially, in the context of the Indian market system.

Financier Search and Boundaries of the Angel and VC Markets

2018 ◽  
Vol 43 (6) ◽  
pp. 1223-1249
Author(s):  
Gurupdesh Pandher
Keyword(s):  
Risk Aversion ◽  
Risk Preferences ◽  
Venture Capitalists ◽  
Entrepreneurial Finance ◽  
Initial Value ◽  
Agency Model ◽  
Investment Return ◽  
Investment Returns ◽  
Venture Funding ◽  
Funding Cycle

This paper studies how critical entrepreneurial finance outcomes such as the investment return and equity division are shaped by venture characteristics, financier risk preferences, and competitive searching. Our analysis uses a double-hazard agency model in which financiers determine the equity division to maximize the expected utility of their investment return while entrepreneurs search for the best deal. Model results provide new theoretical insights on the venture funding cycle, the coexistence of angels/venture capitalists (VCs) with heterogeneous risk aversion, and risk separation in the entrepreneurial finance market. The model predicts that financiers with higher funding capacity and advisory capabilities (e.g., VC firms) will prefer to fund at later stages as their expected investment return rises with the venture’s initial value and financier productivity. Competitive searching by entrepreneurs enables financiers with a diverse set of risk preferences to coexist profitably by reducing the advantage (disadvantage) of lower (higher) risk aversion financiers and making investment returns more similar. Further, the model shows the emergence of a risk separation cutoff beyond which only angels/VCs with lower levels of risk aversion can profitably fund riskier ventures.

scholarly journals On the 50-year research landscape of entrepreneurial finance: A sign of Western ideological homogeneity?

2020 ◽  
Author(s):  
NGUYỄN Minh Hoàng ◽  
Nguyen Thanh Thanh Huyen ◽  
Thanh-Hang Pham ◽  
Nguyen Thi Quynh Yen ◽  
Quan-Hoang Vuong
Keyword(s):  
Financial Risk ◽  
Scientific Development ◽  
Entrepreneurial Firms ◽  
Entrepreneurial Finance ◽  
Research Directions ◽  
Prestigious Journal ◽  
Survival And Development ◽  
Future Potential ◽  
Number Of Publications ◽  
Research Domains

Financing issues play essential roles in the survival and development of entrepreneurial firms. The current study, employing the bibliometric analysis of 6,903 articles from 1970 to 2019, extracted from Web of Science database, aims to provide an overview of the discipline’s landscape and major scientific domains to facilitate scientific development within the field. Entrepreneurial finance is a young and growing field with exponential growth in the number of publications (with 19.54% per year) and rising collaboration tendency among authors. Journal of Business Venturing is the most prestigious journal, while Sustainability is noteworthy for its rapid contribution to the field. We also note a sign of Western ideological homogeneity from the collaboration networks and lists of top authors, institutions, and countries. Besides, using keyword co-occurrence analysis, seven major research domains are identified: “venture capital”, “crowdfunding”, “SMEs finance”, “social entrepreneurship finance”, “financial risk”, “microfinance”, and “human-social-financial capital”. Based on these findings, we raise the concern of lacking diversity in entrepreneurial finance research and provide several recommendations for future potential research directions.

scholarly journals Entrepreneurship, finance entrepreneurs and job creation: Evidence from panel data

2017 ◽  
Vol 8 (2) ◽  
pp. 44
Author(s):  
Manuela Vega-Pascual ◽  
Filippo Di Pietro ◽  
Rafaela Alfalla-Luque
Keyword(s):  
Panel Data ◽  
Capital Structure ◽  
Institutional Environment ◽  
Job Creation ◽  
Entrepreneurial Activity ◽  
Entrepreneurial Finance ◽  
Access To Finance ◽  
Public And Private ◽  
Business Context ◽  
The Relationship

<p>Within the line of research in entrepreneurship and economic development that defends the entrepreneurial activity as a tool for job creation and activation of the economy, we will perform an empirical analysis in Spain of the relationship between the institutional environment, specifically the entrepreneurial finance variable , capital structure and growth of young firms. To this end, this study focuses on the business context of young Spanish SMEs and uses information from the GEM and SABI databases for the period 2008-2015. Using the panel data methodology, empirical evidence is provided that access to finance favors the indebtedness of young Spanish SMEs, and leverage is an explanatory factor of job creation. The data is consistent at the country and regional levels. Therefore, an institutional effort, both public and private, that facilitates financing entrepreneurs will favor the creation of employment and economic growth. The authors have contributed equally to this research. </p><p>[Emprendimiento, financiación para los emprendedores y creación de empleo: Evidencias a través de datos de panel]</p><p>Dentro de la línea de investigación en emprendimiento y desarrollo económico que defiende  la iniciativa emprendedora como herramienta de creación de empleo y activación de la economía, vamos a realizar un análisis empírico en España de la relación entre entorno institucional, concretamente de la variable apoyo financiero, estructura de capital y crecimiento de jóvenes empresas. Para ello, este estudio se centra en el contexto empresarial de las jóvenes PYMES españolas y utiliza información de las bases de datos GEM y SABI para el horizonte temporal 2008-2015. Mediante la metodología de datos de panel se aporta evidencia empírica de que el apoyo financiero favorece el endeudamiento de las jóvenes PYMES españolas, y el apalancamiento es un factor explicativo de la creación de empleo. Los datos son consistentes a nivel país y a nivel regional. Por tanto, un esfuerzo institucional, tanto público como privado, que facilite el acceso a la financiación empresarial favorecerá la creación de empleo y el crecimiento económico. Todos los autores han contribuido de igual manera en esta investigación.</p>

Impact of Entrepreneur's Environmental Attitudes on Corporate Environmental Responsibility

2017 ◽  
Vol 2 (2) ◽  
pp. 23-38 ◽  
Author(s):  
Vallari Chandna
Keyword(s):  
Strong Influence ◽  
Environmental Attitudes ◽  
Institutional Environment ◽  
Personal Characteristics ◽  
Environmental Responsibility ◽  
Business Practices ◽  
Entrepreneurial Firms ◽  
Corporate Environmental Responsibility ◽  
The Impact

The impact of personal characteristics, beliefs, values and attitudes of the entrepreneur on firm's culture and business practices, is substantive. These aspects of the founder coupled with the institutional environment of the firm, affect the investment, efforts and involvement of the firm in a multitude of activities. With regard to activities that impact the natural environment, this paper argues that the environmental attitudes of entrepreneurs have a strong influence on the corporate environmental responsibility (CER) of the firm that are in turn moderated by the need for legitimacy by new entrepreneurial firms. The role of imprinting is examined to understand how founders' attitudes impact their firm's CER activities. A further contribution is the creation of a taxonomy of sub-categories of CER activities that illustrate the level of engagement of the firm.

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.

Sign in / Sign up

Export Citation Format

Share Document