We consider a risk-averse entrepreneur who invests in a project with idiosyncratic risk. In contrast to the literature, we assume the entrepreneur is unable to get a loan from a bank directly because of the low creditability of the entrepreneur and so an innovative financial contract, named equity-forguarantee swap, is signed among a bank, an insurer, and the entrepreneur. It is shown that the ...

We consider the combined impact of agency problems and behavioural factors on venture capital/entrepreneur contracting and performance. Particularly, we develop a behavioural game-theoretic model in which a venture capitalist and an entrepreneur negotiate over their respective equity shares, and then exert value-adding efforts in running the business. Double-sided moral hazard exists in that bo...

Based on specific analysis of necessity to cultivate current college students' entrepreneur traits, this paper analyzes the feasibility of using consulting-type class to cultivate the entrepreneur traits of students. We aim to proof the effectiveness and innovation significance of using consulting-type class to cultivate students’ entrepreneur traits, which greatly mobilizes students’ exploring...

The aim of this article is to apply the Austrian analysis of the entrepreneur to the political process. By distinguishing the political process from the economic process, we will endeavour to show to what extent an analysis in terms of the political market process is both possible and relevant. The existence of an information conveyance which can be assimilated to a price system within the poli...

Entrepreneurship is a subject of great interest, a process in which more and more people want to take part. The main character of entrepreneurial process is the entrepreneur. He is motivated by various factors and, with certain abilities, competences, attitudes and skills he can develop a sustainable business. In this study, the author aims to develop a profile of technological entrepreneur, st...

We analyze the nature of financial contracting when an entrepreneur can choose the specificity of investments and financial contracts are incomplete. Investing in projectspecific assets increases productivity but decreases liquidation value. This creates a strategic incentive to specialize assets to decrease the bargaining power of the financier when debt financing is used. By contrast, equity ...

We test the theory that personal financial resources are an important factor in becoming an entrepreneur. Using data from the Panel Study of Entrepreneurial Dynamics (PSED), we examined the role of financial resources (e.g., household income and wealth) and human capital (e.g., education, prior work and entrepreneurial experience, and influence from family/friends) on the decision to become an ...

Solution The unique pure strategy subgame perfect equilibrium is (Rr, r). 2. (30pts.) An entrepreneur has a project that she presents to a capitalist. She has her own money that she could invest in the project and is looking for additional funding from the capitalist. The project is either good (denoted g) (with probability p) or it is bad (denoted b) (with probability 1− p) and only the entrep...