Search results

The literature documents a shortage in the supply of external funding to small- and medium-sized enterprises (SMEs) in general and to innovative SMEs in particular. This study separates cognitive from financial constraints on innovative SMEs’ growth opportunities. Using data gathered through in-depth interviews with the CEOs of 115 SMEs, we reveal that over and above a problem with supply, there exists a twofold problem on the demand side. Specifically, we document that there is a tendency for these companies to avoid approaching external funding sources, especially ones that gear their investments toward innovation. Our results reveal a cognitive bias (over-pessimism) affecting the entrepreneurs’ (lack of) demand for external financing over and above other firm-specific factors. CEO tenure — our proxy for human and social capital — is significantly lower (higher) in firms that did (did not) pursue external funding. This finding may provide some support for our hypothesis regarding the cognitive bias and over-pessimism of the more veteran CEOs who have had negative experiences regarding recruiting external resources. The impact of this entrepreneurial cognition is shown to be economically detrimental to the enterprise. Nevertheless, the negative effects are not limited to the micro level, but have implications at the macro level as well, due to under-realization of the potential for employment, productivity, and growth of the firms comprising the vast majority of the economy.

In response to recent public library funding deficiencies, many people both inside and outside the field of librarianship have suggested that public libraries need to rely less on traditional government funding and more on alternative funding sources. This chapter reports the results of a review of the research and professional literature relating to government and alternative funding for US public libraries and presents a case study of the West Chester (PA) Public Library, which relies heavily on non-tax funds for its operations. It concludes with an analysis of the major arguments for and against alternative funding for public libraries and a consideration of the implications for public librarianship in the United States.

In the era of the knowledge economy, universities are expected to contribute to the economic development of their countries. Therefore, their research agendas must be relevant to the local context and geared, though not uncritically, to the national educational agenda. To do this diligently requires research autonomy. However, due to the low government investment in research on the African continent, universities have had to rely on other sources of funding, which usually come with strings attached. Our study investigates the case of Ghana, in particular, the University of Ghana, the leading research university in the country. We drew on resource dependence theory, which suggests that, despite external pressures on universities, they can enhance their autonomy through the implementation of strategic measures. Primarily, we analyzed documents such as research reports, journal articles and speeches in the light of Clark’s (1998) model of the “entrepreneurial university,” which, if adapted with care and in a localized form in Ghana, may contribute to the research autonomy of its universities. We found that, although research autonomy in Ghanaian universities is limited due to their over-reliance on external donor funding, it is likely to be strengthened if the government of Ghana follows through on plans to increase research funding and universities continue with measures to diversify their funding sources.

Limited access to capital is a classic issue in and a burden to micro, small and medium enterprises (MSMEs) in Indonesia. The existence of the problem with information asymmetry and agency conflicts that are predominant at the level of small businesses, increasingly hampers the opportunity to obtain funds from various external sources. Especially for businesses that are at the pioneering stage, entrepreneurs are required to think creatively, have the courage to take risks, and be independent in fulfilling resources to realize business opportunities. The availability of funds certainly has an impact on business performance, either directly or indirectly. Based on a literature review, business performance is categorized into financial and non-financial dimensions with various measurement proxies. However, some of the models and measurements proposed are not always suitable in assessing the performance of MSMEs, especially in the startup phase. Therefore, this chapter concurrently describes the funding patterns and the funding alternatives to measure the performance of new businesses based on the existing literature. Theoretically, this research adds a perspective in the field of entrepreneurial finance regarding funding patterns that can be implemented by startup businesses in Indonesia and provides a proposal for measuring the concept of performance that is more adaptive and comprehensive for businesses in the startup stage. The implication of this research for entrepreneurs leads to the need to adjust funding decisions according to the changing stages of the business lifecycle and to expand the funding window to support the sustainability of small businesses.

This chapter traces the history of digital libraries (DLs) in the United States through the funding sources that have supported DL research and development over the past decade and a half. A set of related questions are addressed: How have the mission and goals of funding agencies affected the types of projects that have been funded? What have been the deliverables from funded projects and how have the goals of the funding agencies shaped those deliverables? Funding agencies have exerted strong influence over research and development in DLs, and different funding agencies have funded different types of projects, with varying sets of concerns for driving the various fields that feed into DLs. This chapter will address the impact that DL funding has had on the development of research in the field of Library and Information Science, as well as on the practice of librarianship.

Policymakers have long supported the development of venture capital markets on the basis that venture capital fills a perceived gap in the availability of early stage seed capital funding for new technology-based firms (NTBFs).¹ Support from policymakers, however, has not been matched by academic research on NTBF financing. This is a major concern because NTBF financing is not well understood. The theoretical focus of this chapter is the life cycle or stage model of financing, which has proved the dominate paradigm in the analysis of financing in NTBFs. It is particularly relevant to this study, as the stage model is explicitly endorsed by venture capitalists who structure deals in phases in order to effectively monitor the investee firm's progress (Sahlman, 1990).

It is not rare to read positive comments about North American higher education from higher education stakeholders in Europe, particularly policy-makers and institutional managers. The aspects of the system which are most often praised are the degree of institutional competition and the benefits this brings in terms of institutional flexibility, responsiveness, and adaptability. Moreover, those voices also enhance the resourcefulness of North American higher education institutions in finding alternative sources of funding to cope with the steady decline in public funding. In recent decades European higher education has felt the impact of the aforementioned trends and the effects have been not altogether dissimilar from the ones identified in North American higher education. Moreover, the growing integration of European higher education systems has also contributed to enhance some convergence with some of the trends identified in the American case. In this paper, we reflect on the impact of the increasing marketization of funding and governance mechanisms on the European higher education landscape and compare it with the impact of those trends discussed in the papers by Irwin Feller and George W. Breslauer.