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The purpose of this paper is to investigate the impact of social capital of non-resident family members on small business debt financing. Recent literature in entrepreneurship suggests that small businesses can borrow social capital to improve their access to debt financing.

Micro-entrepreneurs from India were interviewed regarding their ability to raise capital from family members as well as their relationship with banks and politicians.

The survey indicates that small business entrepreneurs are able to borrow social capital from non-resident Indians. Results also suggest that these small businesses are more likely to be connected to banks and politicians facilitated by their non-resident family members, which not only improves micro-entrepreneurs’ access to debt financing but also reduces their cost of borrowing.

This is a co-relational study that investigates the association between social capital of non-resident family members and small business debt financing. There is not necessarily a causal relationship between the two. The findings of this study may only be generalized to firms similar to those that were included in this research.

This study contributes to the literature on the factors that improve the access to small business debt financing. The findings may be useful for financial managers, investors, financial management consultants, entrepreneurs, and other stakeholders.

The chapter covers the legal landscape and roadmap of legal aspects for venture capital (VC) investments and financing.

Mexico’s VC industry is composed by 63 Mexico-based fund managers plus another 50 foreign firms that have done at least one transaction on the past four years. In sum, they have committed over $1.64 billion USD to be invested in the venture space, distributed over a diverse pool of VC stages and industries. As many of 46 funds are focused on seed capital, leaving the rest for later stages.

Regarding deal activity, AMEXCAP has record of 782 VC transactions for a total of $834 million USD invested from 2010 to September 2017. The industry saw its best year in its history in 2016 with the largest number of transactions with 182, representing $209 million USD of capital invested. Of these, 55% of all deals were in the seed stage, 40% in series A and B, and 5% were in later stages.

This study aims to examine which categories of management control systems (MCSs) in startups are most important to external financiers. Furthermore, this paper investigates how equity and debt financiers differ in their perceptions of MCS categories and examines the relevance of MCSs for their investment decisions.

This study collects data through a cross-sectional survey sent to equity and debt financiers actively investing in startups. The results are based on survey responses from 73 financiers.

The results show that financial MCSs are considered most important, followed by strategic MCSs, while human resources MCSs are perceived as only moderately important. This paper finds significant differences in the perceived importance of MCS categories between equity and debt providers, which can be explained by differing risk profiles and monitoring needs. Although debt financiers consider financial and strategic MCSs to be less important for their portfolios’ startups than equity financiers do, debt financiers perceive MCSs as more important for their initial investment decisions.

The study sheds new light on the importance of different MCS categories in startups by analyzing external financiers’ perceptions. Overall, the empirical study provides insights that are particularly valuable for startups seeking external financing for company growth.

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.

The purpose of this paper is to investigate the relationship between capital structure and business process management (BPM) within ambidextrous firms. In particular, referring to the listed companies in the Mercato Telematico Azionario (MTA) and Mercato degli Investment Vehicles (MIV) markets with large- and mid-sized capitalization, divided into ambidextrous and non-ambidextrous companies, the authors examined the capital structure to fill a gap in the current literature.

This study uses a mixed-method sequential exploratory design. In particular, a qualitative study was conducted to identify some Italian-listed companies, called ambidextrous firms, which have implemented incremental (exploitative) and radical (explorative) innovations in an ambidexterity perspective of process management. A quantitative study was designed to provide insights into the different degrees of leverage of the listed companies selected by the qualitative analysis.

The research is based on an empirical analysis undertaken with 69 companies listed on Italian markets (starting from the MTA and MIV Italy 100 – large- and mid-sized capitalization). In particular, the authors highlight 11 companies that, based on the literature, can be defined as ambidextrous organizations. These firms, in each year analyzed (2014, 2015, and 2016), have more leverage than non-ambidextrous ones. Considering that firms today need to constantly revisit their portfolio of debt and equity, ambidextrous organizations could evaluate the largest debt available in order to implement new BPM tools.

To the authors’ knowledge, this is the first exploratory study based on capital structure and the simultaneous exploration and exploitation of knowledge (ambidexterity) that also is informed by a BPM perspective. The paper presents evidence from Italian-listed companies that are referred to as ambidextrous and have different degrees of leverage.

The purpose of this study is to investigate sequences of event and the resulting innovation paths and trajectories followed by a university spin-off organization.

A single longitudinal case study methodology was applied to analyze innovation events and paths along the trajectory. Narrative methods were used to analyze actor perceptions on innovation processes/events.

The study categorizes events and paths in two categories, technical and commercialization, and finds that lock-in events matter for convergence of an innovation trajectory. The results indicate that understanding critical events may assist timely interventions in the innovation paths, thus potentially avoiding disruptions of the development of an innovation trajectory. The temporal processes reveal contrasting convergence–divergence patterns in the trajectory, depending on the types of events that occur.

Using a single case data may limit the applicability of the findings, which calls for future research.

Industries could monitor the technical and commercialization paths as a strategy to reduce “vulnerability” of the innovation trajectory and possible negative impacts. Knowledge about the role of the CEO is key for a university spin-off organization.

This study presents a new typology of events and paths, identifies and characterizes lock-in events and shows the relatively fragile dexterity between convergent and divergent paths along an innovation trajectory.

The case presents a financing dilemma at a fast growing, Brazilian construction company. The growing demand for residential and commercial real estate in Brazil, coupled with the capital intensive nature of the industry generates the need for a considerable external financing. The students are invited to take the perspective of the financial manager and evaluate three financing alternatives – an issue of debentures, a seasoned equity offering, and a capital-raising ADR offering. In their evaluation and final recommendation students need to consider the implications of each of the financing alternatives on firm value, equity risk, cost of capital, financial leverage, issuance costs, and ownership structure. The case also presents a valuable opportunity to discuss the interdependence between the institutional development of an economy and the development of its capital markets.

The chapter provides a practical guide to identify and define different funding sources for entrepreneurial and innovation endeavors, including a methodology to describe return on investment expectations from funding sources. Also, the authors provide recommended key performance indicators and valuation methods when pitching to potential investors.

Communicating vision of science and technology to inform and educate the nation is absolutely a way to expand science and technology literacy and promote industry growth. The scientific and progressive society has become one of the important agendas in realizing Malaysia to become a developed country. In line with the country’s agenda, this study focuses to discuss the concept of scientific and progressive society as stated in 2020 Vision and also to identify the gaps and challenges of the science and technology policies. The purpose of this paper is to focus on the relations between shared vision attributes and the effect of leadership styles of leaders within science and technology industry.

The study discuses about conceptual framework to analyze different leadership styles through the lenses of qualitative textual analysis and theoretically linked to shared-vision theory, leadership theories and performance theories.

The study identify gaps and challenges of the science and technology policies in Malaysia and proposed the conceptual framework with questioning the notion of shared vision as a principle theories, leadership styles and performance, significant to further assess the assumptions.

The study and its proposed framework is based on the literature reviews that may enhance knowledge and may help in identifying gaps in the policies of the science and technology industry in Malaysia.