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Those who would establish high-growth businesses (HGBs) in rural settings face significant challenges. We report findings from more than 80 in-depth interviews regarding the obstacles that rural HGBs face and identify approaches for overcoming these obstacles. First, interviews confirm the need for improved access to a full range of financing options to support HGBs across different development stages. Second, HGBs need in-depth, sophisticated technical assistance, which is generally unavailable in rural areas. Finally, cooperation among financial and technical service providers is vital to program success. Based on these findings, a model is proposed for successful development of HGBs in rural areas.

Using the Panel Study of Entrepreneurial Dynamics II dataset, we examine the role that household income plays in the emergence of consumer-oriented start-ups by individual (solo), family-based (family), and non-family based start-ups (team). In particular, we address the research question: Does household income impact firm emergence, and if so, is emergence impacted differently based on start-up configuration? Our results indicate that household income does have a significant impact on average firm emergence, as well as on emergence growth rates for solo and family firms, playing an especially significant role for family firms. Furthermore, we found that household income is not a significant predictor of start-up activity completion for teams. Results from our study reinforce the extant literature on the benefits of starting a firm with teams, and suggests that these enterprise types may provide a more stable platform on which to launch a start-up. Implications of these findings and opportunities for future research are offered.

There is still an ongoing debate on the value relevance of capital structure and its determinants. Recently the issue has been explored in family firms after being explored in mature firms. This paper investigates the role of institutional investors and the firm's innovation activity in influencing the firm's decision and ability to acquire debt capital.

A large sample of 700 privately-held family firms in Italy from 2010 to 2019. Two analysis techniques are used: panel analysis and path analysis. The value of debt and the debt ratio are used as leverage measures. The value of patent (as a proxy for innovation) and institutional investor are the explanatory variables.

The results show that institutional investors have no relationship with financial leverage measures except when controlling for an interaction variable (Institutional investors × Lombardy region). The patent value is positively correlated with debt; however, the ratio patent-to-asset is negatively related to financial leverage indicating higher risk exposure. The nonlinearity test demonstrates a turning point when the relationship between patent value and debt inverts.

Firms should monitor their innovation activity since excessive innovation increases risk exposure and affects financing opportunities and value. The involvement of institutional investors does not always enhance value.

Existing literature focuses separately on family firm innovations and financial leverage as outcome variables, emphasizing the role of institutional investors in both fields by adopting agency theory and socioemotional wealth framework. In this study, the authors go further by merging both relationships, investigating the dynamics of the institutional-family firm innovation relationship in influencing the firm's capital structure. The authors contribute to the ongoing debate by providing original findings on capital structure, governance and innovation, supported by rigorous methods to enhance family firms' decision-making.

This paper aims to explore the structure and underlying contracts of Islamic venture capital (IVC) and to evaluate its prospects. VC can be perceived as an investment vehicle possessing most of the desirable attributes of a Sharīʿah-compliant investment vehicle. There are certain issues involved in the formation, operations and exit strategies of these investments that are discussed in detail in this paper.

A detailed review of relevant literature is performed to identify how IVC investments can be made and how related issues may be resolved.

IVC investment has potential of incorporating Sharīʿah-compliant investment modes. Additionally, it may offer higher than average returns. These attributes can be desirable for Islamic finance industry that is currently in need of equity-based financing products. The major causes of lesser growth of IVC investments are lack of awareness among the investors and the absence of viable investment opportunities for small- and medium-scale investors. IVC may attract general public if established after extensive research aimed at introducing innovative products.

This paper provides an overview of a truly Sharīʿah-compliant investment vehicle, furnishes a synthesis of various suggestions made by industry and academia and suggests viable solutions for valuation, risk management and exit strategies.

The purpose of this study is to understand the role of the migrant entrepreneur’s social capital and specifically their family social capital in the success of their crowdfunding ventures.

This paper develops an exploratory single case study of the Persu Bag started by a Chinese migrant entrepreneur in the USA, which was documented through in-depth interviews, email communication, social media interactions and secondary documents publicly available. This paper draws on crowdfunding and social capital literature to fulfil the purpose and adopt the perspective of the migrant entrepreneur in the study.

The study shows that the crowdfunding migrant entrepreneur’s family network contributes with their operand and operant resources from both the country of residence and country of origin. Besides having financial capacity, institutional knowledge and experience from both the host and home countries, the family network in both countries make the crowdfunding immigrant entrepreneur’s families more resourceful, providing additional benefits to the crowdfunding migrant entrepreneurs in the development of the campaign and crowdfunded venture.

This study broadens the understanding of the ways migrant entrepreneurs can rely on their family social capital for building financial capacity and starting a crowdfunded venture.

The role of patents for appropriating (capturing) value from innovation investments has for decades been of major interest to both practitioners and academics in innovation management. Many studies have implicitly assumed that firms appropriate value through in-house creation and marketing of innovative products and services, and that the main function of patents is to protect the exclusive sales in product and service markets. We challenge this assumption in light of the variety of business models, strategies and markets now being available, including different organizational and market forms of open innovation.

A conceptual framework and typology of open innovation markets is developed, and the role of patents for appropriation is investigated in these markets among 172 Swedish technology-based firms.

The results show that the importance of patents has a skewed distribution with some firms rating patents very important and with a fat tail of firms rating patents less important. Most importantly, the results indicate that patents are enabling exchange and technology trade in various types of open innovation markets rather than only supporting vertically integrated business models. Thus patents were found to help rather than hinder the use of open innovation markets.

The paper makes two main contributions. First a theoretical reinterpretation of open innovation with a conceptualization of open innovation markets for appropriation of innovation values. Second an empirical illustration of new roles of patents for appropriating innovation values in these markets. The paper in addition illustrates the use of a counterfactual approach to questionnaire surveys, as well as the complementarities between patents and other means of appropriation.

Given the importance of immigration and immigrant entrepreneurs in advanced economies, the authors take an entrepreneurial ecosystem perspective to study the home-country benefits possessed by immigrant entrepreneurs and how home-country entrepreneurial ecosystem factors affect immigrant entrepreneurial motivations, activities and outcomes.

This conceptual research paper follows McGaghie, Bordage and Shea's (2001) four-step new theory creation process, which suggests that new theories can be created through facts extraction from the extant literature.

The authors propose that although immigrant entrepreneurs are unable to take full benefit of the host-country entrepreneurial ecosystem due to blocked mobility, they do have capabilities to access and use their home-country entrepreneurial resources and opportunities. The authors further propose that home-country entrepreneurial capital can be systemically analyzed through the framework of the entrepreneurial ecosystem. The results imply that immigrant entrepreneurship as a social and economic phenomenon can be studied more holistically from both host- and home-country perspectives compared to the traditional research boundary of the host-country only.

The research focuses on the identification of home-country effects on immigrant entrepreneurship through the lens of the entrepreneurial ecosystem. Testable propositions provide directions for future empirical research on the field of immigrant entrepreneurship from a home-country perspective. The research concludes that a holistic immigrant entrepreneurship study should consider dual (host- and home-country) entrepreneurial ecosystems.

Immigrant entrepreneurs benefit from both host- and home-country entrepreneurial ecosystems. This paper suggests co-effects of dual entrepreneurial ecosystems lead to a high rate of entrepreneurship and business success within some immigrant groups. Policymakers can increase economic activities by developing and deploying programs to encourage immigrants to embed in host- and home-country entrepreneurial ecosystems.

Based on the framework of the entrepreneurial ecosystem, this paper brings a novel perspective to examining home-country effects on immigrant entrepreneurship. It theoretically conceptualizes that immigrants have higher entrepreneurship rates than native-born populations because they have access to extra home-country entrepreneurial capital.

Creating a new product or service promotes the status quo changes, seeking economic value and solving customer's urgent problems. Entrepreneurs play an important role in this changing process through start-ups and small and medium enterprises (SMEs), considered one of the leading forces driving an economy’s innovative and competitive power. However, despite the importance of entrepreneurs, public policies to foster entrepreneurship ecosystems could be ineffective in emerging countries. Therefore, action research proposes the qualification of entrepreneurs for the structuring of new businesses through remote orientation, connecting the country's main economic centers to emerging areas.

The study is qualitative research comprising two phases. The first phase consisted of four-month action research, connecting two researchers and three groups of specialists (from Sao Paulo), with three groups of entrepreneurs (located in Manaus in the Amazon region), through a remote orientation in entrepreneurship, lean start-up, lean product and process development (LPPD). The second phase, conducted by a third researcher, regards a case study grounded on interviews and data collection with the entrepreneurs to capture the outcomes of the remote orientation process.

The remote orientation helped shorten the geographical distance of Amazonas to approach the integration of business, research and knowledge exchange of such distinct areas in the same country. If a remote orientation program was established as public policy, it could enact subsequent cycles of the lean start-up model. Furthermore, the remote orientation could be an alternative to compose the training subsystem in the entrepreneurship ecosystem proposed by Isenberg (2011). On the other hand, a remote orientation could fail to shorten the distance of human values and beliefs, which cannot be neglected when facing a rich territory like the Amazon.

Because of the chosen research approach, a qualitative and exploratory study based on a combination of action research, interviews and case studies, the results may lack generalizability. However, further studies can replicate the remote orientation process conducted in the region of Manaus – Amazon, to obtain distinct results regarding the advantages, disadvantages and effectiveness of remote orientation as entrepreneurship ecosystem’s human capital dimension development.

The outcomes of this research have the potential to start discussions regarding the adoption of remote orientation as a public policy to develop entrepreneurship skills in emerging regions, not only in Brazil but worldwide. The Brazilian case could be a relevant benchmark due to the large territory and economic and social disparities impacting education and entrepreneurship.

Through start-ups and SMEs, entrepreneurship has innovation potential and is the most solid way to bring economic development. For emerging countries, it can be real game-changer in the economic order. The development of entrepreneurship skills through this remote orientation experience can help reduce the economic and social gaps in countries with relevant disparities like Brazil and other emerging countries.

This paper fulfills an identified need to “move the needle of entrepreneurship in the right direction” (Isenberg, 2010) by creating local solutions for global challenges. Policymakers and leaders need to continue the experiment and learn how to improve the entrepreneurship ecosystem. In this sense, the action research approach, combined with the remote orientation, proposes an alternative to promote changes in how human capital dimension can be developed in this challenging ecosystem.