The stimulation of entrepreneurship through venture capital and business incubation

Gaspar, Fernando C.

doi:10.1504/ijeim.2009.024587

Cited by 10 publications

(8 citation statements)

References 11 publications

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“…The cooperation mechanism between the incubator and the venture capitalist has received little attention in existing research. Gaspar [22] confirms that the incubator's network and the venture capitalist's funds enable the new venture to develop further. Avnimelech et al [11] perform the empirical work to examine whether the interaction between the incubator and the venture capitalist is beneficial for the new venture.…”

Section: Literature Reviewmentioning

confidence: 84%

Revenue and Knowledge Cooperation Mechanisms between Business Incubators and Venture Capitalists for Collaborative Start-Ups

Wu¹,

Han²

2017

TEL

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Business incubators and venture capital are effective instruments for supporting the development of new firms. The purpose of this paper is to explore cooperation mechanisms between business incubators and venture capitalists and find the equilibriums of the mechanisms. Also, this paper puts forward three mechanisms, revenue sharing mechanism, cost sharing mechanism and knowledge sharing mechanism, to discuss the cooperation between business incubators and venture capitalists. Meanwhile, we consider the effect of the business incubator's altruism and compare the three cooperation mechanisms with and without altruism. The results indicate that the mechanism of revenue sharing leads to the highest incubator's revenue sharing proportion. Additionally, the incubator's revenue sharing proportion decreases even though its final profit increases when considering altruism. Therefore, the nonprofit incubator can be better for cooperating with the venture capitalist than the profit incubator. Finally, financial returns can influence their cooperation.

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Section: Literature Reviewmentioning

confidence: 84%

Revenue and Knowledge Cooperation Mechanisms between Business Incubators and Venture Capitalists for Collaborative Start-Ups

Wu¹,

Han²

2017

TEL

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“…The role of the entrepreneurship development in promoting economic growth, innovation and employment creation has been extensively debated over a long period, in both advanced and emerging economies (Abubakar, 2015;Ahlstrom & Garry, 2006;Gaspar, 2009;Finkle, 2012;Si et al, 2020;Santos et al, 2021). Considering the growing interest of researchers in high-growth entrepreneurship as a pillar for economic growth for emerging economies, new study areas have emerged to adequately address these research gaps.…”

Section: Introductionmentioning

confidence: 99%

“…Previous studies document that to sustain entrepreneurship development, Africa demands a broad spectrum of sustainable funding models and state effective involvement that can inspire foreign investors. In the context of feasible equity financing sources, many scholarly articles support VC investment for the continued contribution to the emergence of global famous entrepreneurship model centres, for instance, the United States (US) model of Small Business Page │1178 Investment Companies (SBIC) and Yozma fund in Israel (Virtanen, 2001;Gaspar, 2009;Lerner, 2010;Gu et al, 2018;Iriyama et al, 2010;Dai et al, 2022). Albeit, the abundant empirical data presented on the VC's role is largely from US and European countries, as this is where utmost consistent data is available (Tykvova, 2018;Gompers et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Venture Capital Financing as A Driver for Entrepreneurship Development in Africa. A Literature Review and Future Research Agenda

Idi

Chiloane-Tsoka

2022

ijebd

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Purpose: Several academics and practitioners have observed entrepreneurship development as a critical pillar for the prosperity of high-growth entrepreneurial ventures, new job opportunities, promotion of exports, and improvement of tax revenue across all countries. However, little is known about the role of VC in stimulating entrepreneurship development in Southern and East African regions. Design/methodology/approach: Therefore, we reviewed 121 articles in international accredited journals from 2001 to 2022 to provide insights into this field of study. Findings: Our results show that 90% of the reviewed articles were empirical, and 10% were theoretical. Furthermore, only 7% of the articles support the role of VC investment in entrepreneurship development. Colossal studies present beneficial results on this topic, but they are mainly from developed economies in Latin America and Europe, thus widening the literature gaps in Africa. Research limitations/implications: Whereas the VC industry has received growing attention from emerging economies lately, it is still divided and restricted to technology entrepreneurship sector. Practical implications: To the best of our understanding, this is the first multidisciplinary and integrative analysis that delivers a current thematic overview and insights into the explicit fields to create instincts for further empirical studies on the role of VC investment in entrepreneurship development in developing countries. Second, our literature analysis discloses significant literature gaps. Lastly, the authors improve the current literature by suggesting future research directions centred on an integration of exceeding Venture capital investors’ technological skills to foster entrepreneurship development. Paper type: Research paper

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“…However, incubator firms in Portugal viewed having the support of an incubator as even more critical (Gaspar, 2009) with 87% of the entrepreneurs saying that they could not have created their firms without this support.…”

Section: What Is Known About Availability and Usage Of Provisions?mentioning

confidence: 99%

An affordance lens on the influence of incubators on firms’ strategy development

Douché¹

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<p>Business incubators provide resources to help create successful new ventures (Hackett & Dilts, 2004b). However little is known about how the strategies of the incubated firms develop and the specific role of incubators in this process. While incubators have received increased attention in academic literature in recent years, most of this research has focused on the economic benefits of incubators, the firms’ survival rates, and on the incubators’ provisions to firms. There has been minimal attention on how incubators influence what firms actually do and about strategy development in new entrepreneurial firms. This thesis explores how incubators influence firms’ strategy developments. The theory of affordances (TOA) recognises that objects allow for varying opportunities for action (Gibson, 1977) and provides the theoretical lens for this study. This lens was chosen due to its inherent acknowledgement of the complexity of relationships between objects, actors and the environment. First the TOA, incubator, and strategy development literature are examined. This examination concludes with the development of a conceptual model to operationalise incubators’ provisions and firms’ strategy developments. The conceptual model highlights that the relationship between incubators’ provisions and firms’ strategy developments may not simply be one of cause and effect; it takes into account how the affordances of the provisions are perceived and realised, and how this is related to the incubators’ influence on the firms’ strategy development. The conceptual model also identifies contextual factors that could impact this process. A mixed methodology approach was employed which involved in-depth interviews and a survey. The participants were from all six incubators that were in the New Zealand Government’s incubator support programme and included both the incubators and their firms, enabling a triangulated analysis of this primarily qualitative data. The application of the TOA aided the contribution to incubator knowledge. It was found that firms’ judged the value of provisions differently depending on use, and the affordances arising from the provisions varied in scope and changed over time. The firm’s product type, governance structure, duration-factors and the breadth of focus of the incubators, may be associated with how the firms perceived and realised affordances from the incubators’ provisions and, in turn, how their strategies were influenced. In the process of applying the TOA in organisational studies three underlying themes emerged regarding its application; the specificity of affordances, the substitutability of objects and path dependency. Based on these three themes, contributions to the TOA are also proposed. Knowledge gained from this study could inspire further use of the TOA to gain a greater understanding of its application, particularly in organisational settings. From a practice standpoint, knowledge gained should lead to enhancements and greater efficiencies in the incubation sector.</p>

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The stimulation of entrepreneurship through venture capital and business incubation

Cited by 10 publications

References 11 publications

Revenue and Knowledge Cooperation Mechanisms between Business Incubators and Venture Capitalists for Collaborative Start-Ups

Revenue and Knowledge Cooperation Mechanisms between Business Incubators and Venture Capitalists for Collaborative Start-Ups

Venture Capital Financing as A Driver for Entrepreneurship Development in Africa. A Literature Review and Future Research Agenda

An affordance lens on the influence of incubators on firms’ strategy development

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