The Role of Collateral in Entrepreneurial Finance

Previous research has suggested collateral has the role of sorting entrepreneurs either by observed risk or by private information. In order to test these roles, this paper develops a model which incorporates a signalling process (sorting by observed risk) into the design of an incentivecompatible menu of loan contracts which works as a self-selection mechanism (sorting by private information). It then tests this Sorting by Signalling and Self-Selection Model, using the 1998 US Survey of Small Business Finances. It reports for the first time that: high type entrepreneurs are more likely to pledge collateral and pay a lower interest rate; and entrepreneurs who transfer good signals enjoy better contracts than those transferring bad signals. These findings suggest that the Sorting by Signalling and Self-Selection Model sheds more light on entrepreneurial debt finance than either the sorting-by-observed-risk or the sorting-by-private information paradigms on their own.

Bricks vs clicks: entrepreneurial online banking behaviour and relationship banking

Purpose – Little research has been conducted on the effects of information technology on financing entrepreneurial businesses or small and medium sized enterprises (SMEs). The purpose of this paper is to examine the impacts of entrepreneurial online banking and relationship banking on the severity of financial problems perceived by entrepreneurs and their interactive effect. It also investigates how characteristics of individual businesses and entrepreneurial demographics influence SMEs’ financial situation. Design/methodology/approach – An ordered logistic model is used on a UK dataset to empirically test the hypotheses derived in this paper. The empirical evidence is drawn from the 2004 UK survey of SME finances, which contains a sample of 2,500 firms. Findings – This paper finds that both entrepreneurial online banking behaviour and relationship banking alleviates the severity of financial problems perceived by entrepreneurs. The relationship affect is less evident for entrepreneurs who most frequently use an online approach to communicate with their banks than for those using traditional methods. Business and entrepreneur characteristics also have a strong impact on the severity of the financial problems suffered by SMEs. Originality/value – This paper provides evidence supporting the favourable impacts of the application of information technology on entrepreneurial finance from the perspective of entrepreneur/business. It also identifies a substitute relationship between entrepreneurial online banking behaviour and relationship banking, a relationship which contradicts existing evidence.

Myostatin is a key mediator between energy metabolism and endurance capacity of skeletal muscle

Myostatin (Mstn) participates in the regulation of skeletal muscle size and has emerged as a regulator of muscle metabolism. Here, we hypothesized that lack of myostatin profoundly depresses oxidative phosphorylation-dependent muscle function. Toward this end, we explored Mstn/ mice as a model for the constitutive absence of myostatin and AAV-mediated overexpression of myostatin propeptide as a model of myostatin blockade in adult wild-type mice. We show that muscles from Mstn/ mice, although larger and stronger, fatigue extremely rapidly. Myostatin deficiency shifts muscle from aerobic toward anaerobic energy metabolism, as evidenced by decreased mitochondrial respiration, reduced expression of PPAR transcriptional regulators, increased enolase activity, and exercise-induced lactic acidosis. As a consequence, constitutively reduced myostatin signaling diminishes exercise capacity, while the hypermuscular state of Mstn/ mice increases oxygen consumption and the energy cost of running. We wondered whether these results are the mere consequence of the congenital fiber-type switch toward a glycolytic phenotype of constitutive Mstn/ mice. Hence, we overexpressed myostatin propeptide in adult mice, which did not affect fiber-type distribution, while nonetheless causing increased muscle fatigability, diminished exercise capacity, and decreased Pparb/d and Pgc1a expression. In conclusion, our results suggest that myostatin endows skeletal muscle with high oxidative capacity and low fatigability, thus regulating the delicate balance between muscle mass, muscle force, energy metabolism, and endurance capacity.

The interface between organizational learning capability, entrepreneurial orientation, and SME growth

This paper investigates the interface between organizational learning capability, entrepreneurial orientation (EO), and small business performance. It reports on the findings from 350 small and medium enterprises (SMEs) in North Cyprus operating in the services and retailing sectors. The findings indicate a positive relationship between EO and sales and market share growth, but not between EO and employment growth. There is also a positive relationship between organizational learning capability and EO. This paper contributes to the small business management literature by providing a holistic analysis of the interface between organizational learning capability, EO, and growth.

Entrepreneurial failure and economic crisis: an historical perspective

This chapter analyses the major UK economic crises that have occurred since the speculative bubbles of the seventeenth century. It integrates insights from economic history and business history to analyse both the general economic conditions and the specific business and financial practices that led to these crises. The analysis suggests a significant reinterpretation of the evidence – one that questions economists’ conventional views.

Entrepreneurial dynamics and higher education institutions in the post-communist world

This study draws on the institutional and regional entrepreneurship literature to develop a conceptual framework that analyses the impact of higher education institutions on entrepreneurial dynamics. It is used to examine the cities of the Commonwealth of Independent States (CIS) during the period 1995–2008. Extending the multi-pillar institutional concept, it is found that higher education institutions play a prominent role in fostering entrepreneurial dynamics in CIS cities through multiple channels, including human capital development, cultivating a positive attitude towards entrepreneurship, affecting the perceptions of the knowledge and skills needed to start up a successful business, and knowledge spillovers.

Entrepreneurial ecosystems in cities: establishing the framework conditions

This study focuses on regional entrepreneurial ecosystems and offers a complex model of start-ups, Regional Entrepreneurship and Development Index (REDI) and six domains of the entrepreneurial ecosystem (culture, formal institutions, infrastructure and amenities, IT, Melting Pot and demand). Altogether they capture the contextual features of socioeconomic, institutional and information environment in cities. To explain variations in entrepreneurship in a cross-section of 70 European cities, we utilize exploratory factor analysis and structural equation modelling for regional systems of entrepreneurship using individual perception surveys by Eurostat and the REDI. This study supports policymakers and scholars in development of new policies conducive to regional systems of innovation and entrepreneurship and serves as a basis for future research on urban entrepreneurial ecosystems.

INCREASED WATER STORAGE CAPACITY IN CACTUS WOOD: A STUDY IN THE TRIBE CEREEAE (CACTOIDEAE, CACTACEAE)

Secondary xylem of fibrous cactus wood is characterized by short narrow vessel elements with both simple perforation plates and large intervessel pits, libriform septate fibers, and large rays. These are present in basal cactus taxa, as well as in many other groups of the family. In Cactoideae, the most diversified and most derived subfamily, there are remarkable variations found in the secondary xylem, with the more highly derived taxa containing the greatest water storage capacity. Unlignified parenchyma is one specialization found in the fibrous wood of cacti. We observed this tissue in the secondary xylem at the base of the sterns of several Brazilian endemic species of Arrojadoa, Melocactus, and Stephanocereus, all members of the tribe Cereeae. In Arrojadoa and Melocactus the unlignified parenchyma occurs in lines and bands amongst the axial and radial xylem elements, while in Stephanocereus it is mainly restricted to the rays and does not form bands. We address the adaptive importance of the unlignified parenchyma in the fibrous wood in tribe Cereeae and the family Cactaceae as a whole.

Using gap-crossing capacity to evaluate functional connectivity of two Atlantic rainforest birds and their response to fragmentation

One of the main consequences of habitat loss and fragmentation is the increase in patch isolation and the consequent decrease in landscape connectivity. In this context, species persistence depends on their responses to this new landscape configuration, particularly on their capacity to move through the interhabitat matrix. Here, we aimed first to determine gap-crossing probabilities related to different gap widths for two forest birds (Thamnophilus caerulescens, Thamnophilidae, and Basileuterus culicivorus, Parulidae) from the Brazilian Atlantic rainforest. These values were defined with a playback technique and then used in analyses based on graph theory to determine functional connections among forest patches. Both species were capable of crossing forest gaps between patches, and these movements were related to gap width. The probability of crossing 40 m gaps was 50% for both species. This probability falls to 10% when the gaps are 60 m (for B. culicivorus) or 80 m (for T caerulescens). Actually, birds responded to stimulation about two times more distant inside forest trials (control) than in gap-crossing trials. Models that included gap-crossing capacity improved the explanatory power of species abundance variation in comparison to strictly structural models based merely on patch area and distance measurements. These results highlighted that even very simple functional connectivity measurements related to gap-crossing capacity can improve the understanding of the effect of habitat fragmentation on bird occurrence and abundance.

The information capacity of hypercycles

Hypercycles are information integration systems which are thought to overcome the information crisis of prebiotic evolution by ensuring the coexistence of several short templates. For imperfect template replication, we derive a simple expression for the maximum number of distinct templates n(m). that can coexist in a hypercycle and show that it is a decreasing function of the length L of the templates. In the case of high replication accuracy we find that the product n(m)L tends to a constant value, limiting thus the information content of the hypercycle. Template coexistence is achieved either as a stationary equilibrium (stable fixed point) or a stable periodic orbit in which the total concentration of functional templates is nonzero. For the hypercycle system studied here we find numerical evidence that the existence of an unstable fixed point is a necessary condition for the presence of periodic orbits. (C) 2008 Elsevier Ltd. All rights reserved.

Saliva flow rate, buffer capacity, and pH of autistic individuals

The objective of the study was to evaluate saliva flow rate, buffer capacity, pH levels, and dental caries experience (DCE) in autistic individuals, comparing the results with a control group (CG). The study was performed on 25 noninstitutionalized autistic boys, divided in two groups. G1 composed of ten children, ages 3-8. G2 composed of 15 adolescents ages 9-13. The CG was composed of 25 healthy boys, randomly selected and also divided in two groups: CG3 composed of 14 children ages 4-8, and CG4 composed of 11 adolescents ages 9-14. Whole saliva was collected under slight suction, and pH and buffer capacity were determined using a digital pHmeter. Buffer capacity was measured by titration using 0.01 N HCl, and the flow rate expressed in ml/min, and the DCE was expressed by decayed, missing, and filled teeth (permanent dentition [DMFT] and primary dentition [dmft]). Data were plotted and submitted to nonparametric (Kruskal-Wallis) and parametric (Student`s t test) statistical tests with a significance level less than 0.05. When comparing G1 and CG3, groups did not differ in flow rate, pH levels, buffer capacity, or DMFT. Groups G2 and CG4 differ significantly in pH (p = 0.007) and pHi = 7.0 (p = 0.001), with lower scores for G2. In autistic individuals aged 3-8 and 9-13, medicated or not, there was no significant statistical difference in flow rate, pH, and buffer capacity. The comparison of DCE among autistic children and CG children with deciduous (dmft) and mixed/permanent decayed, missing, and filled teeth (DMFT) did not show statistical difference (p = 0.743). Data suggest that autistic individuals have neither a higher flow rate nor a better buffer capacity. Similar DCE was observed in both groups studied.

Radical Scavenging Capacity of Piper arboreum and Piper tuberculatum (Piperaceae)

In the scope of our ongoing researchers on antioxidant compounds, twenty four extracts and fractions obtained from Piper arboreum Aublet and Piper tuberculatum Jacq. (Piperaceae) were screened for radical scavenging capacity (RSC) by using DPPH colorimetric assay. The strongest activity was found in ethyl acetate fractions from the leaves of P. arboreum IC(50) = 5.70 mu g/mL) and P. tuberculatum IC(50) = 8.40 mu g/mL). Hydromethanol fractions of the leaves of P. tuberculatum and P. arboreum showed moderate RSC, with values of IC(50) (mu g/mL) of 11.9 and 19.2, respectively. Additionally, a brief phytochemical study of the ethyl acetate fraction of P. arboreum leaves affording quercetin (1) and quercitrin (2), two flavonols with antioxidant activity previously described in the literature.

Antioxidant Capacity and Larvicidal and Antifungal Activities of Essential Oils and Extracts from Piper krukoffii

The leaves and twigs of Piper krukoffii, collected in the Carajas National Forest, north Brazil, yielded essential oils (2.0% and 0.8%), the main constituents of which were myristicin (40.3% and 26.7%), apiole (25.4% and 34.1%) and elemicin (2.8% and 3.0%). The antioxidant activities of the oils, methanol extract and its sub-fractions were evaluated. The DPPH EC(50) values varied from the ethyl acetate sub-fraction (73.4 +/- 3.7 mu g/mL) to the methanol extract (24.9 +/- 0.8 mu g/mL), and the ABTS TEAC values ranged in the same order from 265.7 to 349.2 mu Mol TE/g. These results indicated a significant antioxidant activity for the plant. The lignans (-)-kusunokin, yatein, (-)-hinokin and cubebin were identified in the methanol extract. The hydro-methanolic sub-fraction showed a high value for total phenol content (106.5 +/- 0.7 mg GAE/g), as well as (1)H NMR signals for sugar moieties. Crude extracts and sub-fractions were also able to inhibit beta-carotene bleaching, varying from 22.4 to 47.1%. The oils from the leaves and twigs showed strong larvicidal (21.4 and 3.6 mu g/mL) and fungicide (0.5 and 0.1 mu g/mL) activities.

Sugarcane spirit extracts of oak and Brazilian woods: antioxidant capacity and activity

Sugarcane spirit extracts of six different Brazilian woods for potential use in manufacturing aging casks were compared with similar extracts of five oak samples from different geographic origin and heat treatment regarding: (1) content of phenolics and copper; (2) radical reducing capacity and reactivity toward 2,2-diphenyl-1-picrylhydrazyl radical (DPPH center dot); and (3) effect on the rate of oxygen depletion rate in a peroxidating lipid model system. Total phenolic contents of the Brazilian wood extracts ranged from 0.65 (canela-sassafras) to 6.4 (jatoba) mmol(GAE) L(-1) and from 1.39 to 2.87 mmol(GAE) L(-1) for oak extracts. Flavonoids ranged from 1.54 x 10(-4) (ipe) to 6.5 x 10(-2) (oak) mmol(rutin) L(-1), and tannins from below the detection limit to 0.22 (jatoba) mmol(tannic acid) L(-1). Correlation was observed for the antioxidant capacity versus phenolics/flavonoids/tannins content, where oak extracts exhibit the highest radical scavenging capacity compared to Brazilian woods. Rate constant for radical scavenging by the extracts ranged from 4.9 x 10(3) M(-1) s(-1)(canela-sassafras) to 9.7 x 10(4) M(-1) s(-1) (oak). The oxygen consumption index showed the Brazilian woods amendoim and jatoba to be more efficient inhibitors than the oak extracts for lipid autoxidation initiated by metmyoglobin, despite that the oak extracts seem to be more efficient to scavenge DPPH center dot. No simple correlation with phenolics or copper content could be established, and a prooxidative tendency was observed for the extracts of canela-sassafras, castanheira, and louro-canela.

Electrochemical determination of the antioxidant capacity: The ceric reducing/antioxidant capacity (CRAC) assay

The CRAC assay is a direct electron transfer test of antioxidant capacity for several organic compounds. The ability of eight different compounds in reducing Cc 41 was studied by chronoamperometric measurements of the remaining Ce(3+) species. The following antioxidant classification was observed: tannic acid >> quercetin > rutin > gallic acid approximate to catechin > ascorbic acid > BHA > Trolox. These results agree with others already published and a good correlation (R(2) = 0.937) was found with the classical spectrophotometric FRAP assay. The CRAC assay is simple, fast, free from sample pretreatment and applicable to nontransparent samples.