Existing finance literature is inadequate with respect to its coverage of the capital structure of small and medium sized enterprises (SMEs). This lack of coverage means that SMEs are provided with little or no guidance for optimising their cost of capital. This paper is an attempt to provide such guidance. For unlisted SMEs the cost of equity cannot be derived from the capital market, nor can ...

This paper is about …nancial contracting choices for the entrepreneur. In an incomplete contracts model, the entrepreneur can design contracts contingent on three possible control right allocations: entrepreneur-control, investor-control, and joint control, with each allocation inducing di¤erent e¤ort levels by both the entrepreneur and the investor. Four types of contract emerge as potentially...

I consider whether entrepreneurship is a distinct category within economic theory. More generally, I consider the links between discussions of entrepreneurship and philosophic debates over the nature of the aesthetic. For instance, Kant’s attempt to elevate the category of the aesthetic has much in common with Kirzner’s attempt to elevate the concept of the entrepreneur. Shackle’s theory of cho...

Existing finance literature is inadequate with respect to its coverage of the capital structure of small and medium sized enterprises (SMEs). This lack of coverage means that SMEs are provided with little or no guidance for optimising their cost of capital. This paper is an attempt to provide such guidance. For unlisted SMEs the cost of equity cannot be derived from the capital market, nor can ...

The nature of the firm and its financing are closely interlinked. To produce significant net present value, an entrepreneur has to transform her enterprise into one that is differentiated from the ordinary. To achieve the control that will allow her to execute this strategy, she needs to have substantial ownership, and thus financing. But it is hard to raise finance against differentiated asset...

Does an entrepreneur-friendly bankruptcy law encourage more entrepreneurship development at a societal level? How does bankruptcy law affect entrepreneurship development around the world? Drawing on a real options perspective, we argue that if bankrupt entrepreneurs are excessively punished for failure, they may pass potentially high-return but inherently high-risk opportunities. Amassing a lon...

This paper presents a theoretical framework in which the relationships between ethnic entrepreneurs and the communities in which they work can be understood. The nature of social ties that affect ethnic entrepreneurs is described. Drawing on concepts from the family business literature, it is proposed that entrepreneurs will have an ambivalent relationship with their employees, customers, co-et...

This study provides some empirical insight into managerial roles of chief information officer (CIO) based on Mintzberg's classic managerial role model and CSC's information systems (IS) leadership roles. A survey was conducted in Norway to investigate potential predictors of leadership roles. Statistical results indicate that CIOs find the role of entrepreneur most important, and this role has ...

prices? As it stands, the theorem provides an important benchmark and enforces careful thinking about financial markets’ workings and the imperfections that would create a world where a firm’s financial position (hence equity prices) affects its ability to engage in production. Many possible imperfections could generate such a world. This article focuses on failures of information. Suppose that...

This paper examines the logics and expectations of entrepreneurs and business angels prior to going into a relationship. Comparisons of the entrepreneurs and the business angels show difference regarding their confidence about their own mind-sets and expectations. The findings are discussed taking an institutional approach; an exogenous institutionalism is influencing the actor, as his logic an...