Environmental Change and its Impact on the Venture Capital Industry: A Review of Recent Research

Abstract

Entrepreneurs can sometimes come to feel that they are not so much working for themselves as they are for a banker who is taking a smaller risk and enjoying a higher return. However, many such companies may not realise that their problem is not lack of money in the sense of debt, but a shortage of equity (Smitham, 1990). Depending on the nature of the small business this problem can be overcome‐a venture capital company could subscribe for part of the equity of their organisation. Venture capital is defined as an investment in an instrument that is not traded on a recognised stock exchange. Venture capital is not a modern phenomenon, although over the last 150 years, it has become more institutionalised within the international financial framework (Tulloch and Walsh, 1991).

Citation

Morgan, M.J. (1992), "Environmental Change and its Impact on the Venture Capital Industry: A Review of Recent Research", Management Research News, Vol. 15 No. 9, pp. 8-12. https://doi.org/10.1108/eb028259