We characterize the properties of optimal accounting rules in a signaling game where an impatient entrepreneur sells shares to competitive investors. The entrepreneur can signal her private information about the fundamental of the rm by retaining a fraction of the shares. In addition, she can commit to disclosing information according to a set of accounting rules chosen ex ante. Information dis...

The development of entrepreneurial skills within the education system increases the possibility of producing more entrepreneurs in future. Many economists now believe that entrepreneurship plays an important role in economic growth of a country. Entrepreneurial education can be used as a mediation tool for impacting attitude of people towards entrepreneurship. A Mentor plays an important role i...

We study the motivation of an entrepreneur to provide disclosure that works primarily to reduce investors’assessment of the firm’s idiosyncratic risk. We refer to this disclosure as “idiosyncratic disclosure.”We assume that the firm’s cash flows are determined by both idiosyncratic and systematic events. The model shows that when the entrepreneur faces a capital market where competition to acqu...

From the perspective of poverty alleviation, socially relevant, or pro‐poor, rural innovation is of particular interest in a country like India since it is in rural areas that most of the poor live. Pro‐poor innovation in rural areas is more likely to occur through small‐scale ventures and entrepreneurs than industrial research and development. The Indian banking system does not su...

Fear of failure can dominate the choices of individuals. We model its role in the decision to become an entrepreneur and subsequent investments made in pursuit of success using the framework of loss aversion. We show that when the threshold for success is suffi ciently high, fear of failure motivates additional sacrifices by entrepreneurs. When the threshold for success stems from foregone outs...

Field Editor: P. Phan When and why one type of entrepreneur (franchisor) attracts to its ventures another type of entrepreneur (franchisees) instead of passive investors is a central concern in entrepreneurship literature. Based on the informativeness principle of the principal–agent model, we claim that franchisees are not such an expensive financial tool as has been argued in the literature b...

Most potential funders wish to see a business plan as a first step in deciding whether or not to invest. However, much of the literature on how to write a business plan fails to emphasize that different types of funder look at business plans from different perspectives. Using a real time methodology this article highlights the different investment criteria of bankers, venture capital fund manag...

This paper focuses on the relationship between the venture capitalist and the entrepreneur. In particular, it analyses how both players’ unobservable effort levels affect the equity share that the entrepreneur is willing to cede to the venture capitalist. We solve the entrepreneur’s maximization problem in the presence of double-sided moral hazard. In this scenario, we show that the venture cap...

The topic of entrepreneurship has been the subject of a considerable amount of academic interest over the last twenty years. Despite a vast amount of published work there have been very few attempts to study the entrepreneurial process. In other words, we know little of the what happens as an entrepreneur moves from idea to the objective reality of a fully functioning business. A more recent ph...

OBJECTIVE The present study aimed to identify and characterize nursing companies managed by entrepreneur nurses registered at the Commercial Registry of São Paulo by 2011. METHOD It's a descriptive, exploratory study, whose data collection, made throughout January 2012, was carried out on the Commercial Registry of Sao Paulo website. This non-governmental body has the function of registering ...