ACE research vignette 029 : Can entrepreneurship be taught?

This series of research vignettes is aimed at sharing current and interesting research findings from our team of international Entrepreneurship researchers. This vignette, written by Professor Per Davidsson, examines the evidence on whether entrepreneurship education and training leads to more entrepreneurial action and success.

ACE research vignette 030 : Is venture capital investment the key to success?

This series of research vignettes is aimed at sharing current and interesting research findings from our team of international Entrepreneurship researchers. This vignette, written by Professor Per Davidsson, reports on a paper which synthesizes available research on the effects of VC funding on the performance of the funded firm.

Effect of an adiabatic fin on natural convection heat transfer in a triangular enclosure

Natural convection thermal boundary layer adjacent to the heated inclined wall of a right angled triangle with an adiabatic fin attached to that surface is investigated by numerical simulations. The finite volume based unsteady numerical model is adopted for the simulation. It is revealed from the numerical results that the development of the boundary layer along the inclined surface is characterized by three distinct stages, i.e. a start-up stage, a transitional stage and a steady stage. These three stages can be clearly identified from the numerical simulations. Moreover, in presence of adiabatic fin, the thermal boundary layer adjacent to the inclined wall breaks initially. However, it is reattached with the downstream boundary layer next to the fin. More attention has been given to the boundary layer development near the fin area.

The Role of Social and Human Capital Among Nascent Entrepreneurs

This study examines nascent entrepreneurship by comparing individuals engaged in nascent activities (n=380) with a control group (n=608), after screening a sample from the general population (n=30,427). The study then follows the developmental process of nascent entrepreneurs for 18 months. Bridging and bonding social capital, consisting of both strong and weak ties, was a robust predictor for nascent entrepreneurs, as well as for advancing through the start-up process. With regard to outcomes like first sale or showing a profit, only one aspect of social capital, viz. being a member of a business network, had a statistically significant positive effect. The study supports human capital in predicting entry into nascent entrepreneurship, but only weakly for carrying the start-up process towards successful completion.

Experimenting with the future of journalism : social capital as a desideratum for networked journalism research

The aim of this article is to position social capital as a theoretical framework for investigating online communities, specifically pro-am operations. It will review pertinent literature on social capital and the future of journalism in this context, and detail how the broader field of Sociology and this dynamic field of Journalism converge to produce a unique opportunity for pro-am research. Currently, much concern has been expressed regarding the future of journalism institutions in society, and while journalism itself is seen as a cornerstone of democracy, the form of structures that facilitate such practice has been questioned. Compounding this problem is a lack of research that produces data suitable for meta-analysis. For example, case-study data of start-up operations in this volatile field do not provide sufficient grounds for conclusions that could result in evidence-based policy. In response to these dynamics, this article will propose experimentation as a method of research for pro-am start-ups.

ACE research vignette 036 : SMEs, Growth, and Job Creation: Lessons from Systematic Research

This series of research vignettes is aimed at sharing current and interesting research findings from our team of international Entrepreneurship researchers. This vignette, written by Professor Per Davidsson, summarises some important, stylized facts about small and medium enterprises (SMEs), growth, and job creation. It was specially prepared for “The G20 Agenda for Growth: Opportunities for SMEs Conference” in Melbourne, June 20, 2014. For this reason its format deviates slightly from other vignettes in the series.

Are we there yet?

The political and bureaucratic discourse surrounding non-profit sector reform is centred on streamlining the regulatory framework. Phrases such as 'one-stop shop','reducing red tape' and 'duplicative, burdensome and unclear requirements' fill press releases, government reports and discussion papers. In this chapter, I examine quantitative measures of the current regulatory compliance burden facing non-profit organisations in Australia as a benchmark for measuring progress over the coming years. I focus on regulatory compliance estimates for four key stages of non-profit enterprise activity non-profit enterprise start-up and registrations; fundraising;grant paperwork; and regulation proportionate to the size of the non-profit enterprise.

Gender and entrepreneurial performance : testing a holistic framework

The aim of this study was to test a holistic framework for assessing new venture performance outcomes that incorporates the impact of gender on internal resource availability (human, financial and social capital) and how, in turn, this impacts: the entrepreneurs’ goals; the investment (both money and time) they make in their new ventures; and the performance outcomes of those ventures. Our results indicate that a majority of the paths examined (using structural equation modeling) are significant and in the expected direction. For example: an entrepreneur’s human capital (comprising management work experience, start-up experience and industry experience) is significantly related to her/his growth goal (in terms of employee numbers); the entrepreneur’s growth goal is positively related to the time invested in the new venture; and the time invested in the new venture is positively related to new venture outcomes.

An interpretative structural modeling based network reconfiguration strategy for power systems

The network reconfiguration is an important stage of restoring a power system after a complete blackout or a local outage. Reasonable planning of the network reconfiguration procedure is essential for rapidly restoring the power system concerned. An approach for evaluating the importance of a line is first proposed based on the line contraction concept. Then, the interpretative structural modeling (ISM) is employed to analyze the relationship among the factors having impacts on the network reconfiguration. The security and speediness of restoring generating units are considered with priority, and a method is next proposed to select the generating unit to be restored by maximizing the restoration benefit with both the generation capacity of the restored generating unit and the importance of the line in the restoration path considered. Both the start-up sequence of generating units and the related restoration paths are optimized together in the proposed method, and in this way the shortcomings of separately solving these two issues in the existing methods are avoided. Finally, the New England 10-unit 39-bus power system and the Guangdong power system in South China are employed to demonstrate the basic features of the proposed method.

The dual nature of information systems in enabling a new wave of hardware ventures: Towards a theory

Hardware ventures are emerging entrepreneurial firms that create new market offerings based on development of digital devices. These ventures are important elements in the global economy but have not yet received much attention in the literature. Our interest in examining hardware ventures is specifically in the role that information system (IS) resources play in enabling them. We ask how the role of IS resources for hardware ventures can be conceptualized and develop a framework for assessment. Our framework builds on the distinction of operand and operant resources and distinguishes between two key lifecycle stages of hardware ventures: start-up and growth. We show how this framework can be used to discuss the role, nature, and use of IS for hardware ventures and outline empirical research strategies that flow from it. Our work contributes to broadening and enriching the IS field by drawing attention to its role in significant and novel phenomena.

ACE Research Vignette 042: Nascent ventures’ surprising resistance to macroeconomic crisis

This series of research vignettes is aimed at sharing current and interesting research findings from our team of international entrepreneurship researchers. This vignette, written by Professor Per Davidsson, reports findings on how the onset of the Global Financial Crisis affected “nascent ventures”, i.e., on-going business start-up efforts.

Nascent Entrepreneurship

Research on nascent entrepreneurship concerns itself with the emergence of new business ventures. The research aims to capture the pre-operational stage, from first idea or action to the point where the process ends either in the establishment of a viable new business or in termination of the start-up attempt. Although the label “nascent entrepreneur” is commonly used, it should be noted that it is really the venture that is nascent. The founder(s) may or may not have prior entrepreneurial experience.

Birth and expansion of innovation ecosystems: A case study of copper production

Despite the growing attention innovation ecosystems have received from scholars and practitioners, rather little is known about the crucial birth and expansion phases that these ecosystems experience. Through a single case in the complex product system (CoPS) environment, this paper investigates the development of an innovation ecosystem between 1980 and 2007. The findings demonstrate that the ecosystem’s birth phase includes sub-phases, namely, invention and start-up, where the ecosystem is reconfigured to find the appropriate form and the proper actors to satisfy the first customer’s requirements. Moreover, the duration of the expansion phase is found to be remarkably long, suggesting that within the CoPS setting, expansion may also include two or more sub-phases.

The success of the diversified farm : resource-based view

Farms and rural areas have many specific valuable resources that can be used to create non-agricultural products and services. Most of the research regarding on-farm diversification has hitherto concentrated on business start-up or farm survival strategies. Resource allocation and also financial success have not been the primary focus of investigations as yet. In this study these specific topics were investigated i.e. resource allocation and also the financial success of diversified farms from a farm management perspective. The key question addressed in this dissertation, is how tangible and intangible resources of the diversified farm affect the financial success. This study’s theoretical background deals with resource-based theory, and also certain themes of the theory of learning organisation and other decision-making theories. Two datasets were utilised in this study. First, data were collected by postal survey in 2001 (n = 663). Second, data were collected in a follow-up survey in 2006 (n = 439). Data were analysed using multivariate data analyses and path analyses. The study results reveal that, diversified farms performed differently. Success and resources were linked. Professional and management skills affected other resources, and hence directly or indirectly influenced success per se. In the light of empirical analyses of this study, tangible and intangible resources owned by the diversified farm impacted on its financial success. The findings of this study underline the importance of skills and networks for entrepreneur(s). Practically speaking all respondents of this study used either agricultural resources for non-farm businesses or non-farm resources for agricultural enterprises. To share resources in this way was seen as a pragmatic opportunity recognised by farmers. One of the downsides of diversification might be the phenomenon of over-diversification, which can be defined as the situation in which a farm diversifies beyond its optimal limit. The empirical findings of this study reveal that capital and labour resource constrains did have adverse effects on financial success. The evidence indicates that farms that were capital and labour resource constrained in 2001 were still less profitable than their ‘no problems’ counterparts five years later.

The context of enterprise education: Insights into current practices

This paper presents the results of an investigation into contextual differences in the development and delivery of enterprise education in higher education globally. Using information gathered from an online survey distributed to enterprise educators, distinct differences in the provision of enterprise education are identified, as are differences of opinion among enterprise educators. The findings demonstrate that although enterprise education is highly diversified in terms of presentation, content and style, there are clear commonalities with regard to expected student outcomes. The respondents reported low levels of business start-up activity among students during enterprise education and/or within one year of graduation. Over 75% of the educators surveyed had personal start-up experience, and there was limited reliance on academic literature, with a preference for referencing broader stakeholder perspectives. With regard to the practical implications of this research, the international metric of enterprise education appears to be a broad set of enterprising skills that equip and enable students to recognize and exploit opportunities in order to navigate future unknowns. The commonly employed metric of business start-up appears less valid in light of this investigation.