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The economic significance of business angels: toward comparable indicators

PublicationBook chapter
Affärsänglar, Företagandets villkor, Hans Landström, Sofia Avdeitchikova

Abstract

In the chapter the authors revisit one of the original topics in business angel research: to measure the scope of the business angel market and evaluate its impact on the economy, especially the financial contributions of business angels at the macro (market) level. This is an issue that has considerable policy relevance. Most policy initiatives to support business angel activities have been introduced without any strong empirical justification nor evidence to inform on the appropriateness of different types of policy measures. In this chapter, the authors summarize our knowledge about the size of the business angel market in different countries. The authors then turn their attention from the size of the market to its ‘significance’; in other words, shifting from a concern with measuring the size of the market to a concern with the relative importance of business angels for funding new and growing ventures in the economy. The authors propose two sets of indicators to evaluate the significance of the business angel market – one that focuses on the supply perspective, that is, the relative importance of business angel finance compared to other sources, and the other that focuses on the demand perspective, that is, the extent to which business angel finance is available in relation to the demand for capital in the small and medium-sized entrepreneur sector.

Avdeitchikova, S., & Landström, H. (2016). The economic significance of business angels: toward comparable indicators. In H. Landström, & C. Mason (Eds.) Handbook of Research on Business Angels (pp. 53–75). Cheltenham, UK: Edward Elgar Publishing Limited. DOI: 10.4337/9781783471720.00008

Related content: Working paper No. 248

Based on content

The economic significance of business angels: toward comparable indicators
BokkapitelPublication
Avdeitchikova, S., & Landström, H.
Publication year

2016

Abstract

In the chapter the authors revisit one of the original topics in business angel research: to measure the scope of the business angel market and evaluate its impact on the economy, especially the financial contributions of business angels at the macro (market) level. This is an issue that has considerable policy relevance. Most policy initiatives to support business angel activities have been introduced without any strong empirical justification nor evidence to inform on the appropriateness of different types of policy measures. In this chapter, the authors summarize our knowledge about the size of the business angel market in different countries. The authors then turn their attention from the size of the market to its ‘significance’; in other words, shifting from a concern with measuring the size of the market to a concern with the relative importance of business angels for funding new and growing ventures in the economy. The authors propose two sets of indicators to evaluate the significance of the business angel market – one that focuses on the supply perspective, that is, the relative importance of business angel finance compared to other sources, and the other that focuses on the demand perspective, that is, the extent to which business angel finance is available in relation to the demand for capital in the small and medium-sized entrepreneur sector.

Reaping Value from Digitalization in Swedish Manufacturing Firms
Book chapterPublication
Mähring, M., Wennberg, K., & Demir, R.
Publication year

2018

Abstract

Excerpt: In this chapter, we take a fresh look at what is actually happening in the area of digitalization, with a particular focus on the Swedish manufacturing sector. […] We particularly focus upon patterns in the ways in which they seek to develop innovations and explore new business models from their activities related to product sensors and wireless data, cloud-based data warehouses, computer-aided manufacturing and 3D printing, big data technologies, and application programming interfaces (APIs). Our findings suggest that while many Swedish industrial firms have developed a strong edge through a combination of high-quality products, international presence, and decentralization, the latter in particular poses challenges when it comes to digital transformation. Digitalization may necessitate large investments across business segments, standardisation, and knowledge sharing regarding both customers and digital solutions in order to create new customer offerings. Points for reflection are then discussed, along with recommendations for scholars that are seeking to develop new and relevant knowledge by studying the transformation of Swedish industry, as well as for managers seeking to benchmark their digitalization activities to others.

Pre- and post-entrepreneurship Labor Mobility of Entrepreneurs and Employees in Entrepreneurial Firms
Book chapterPublication
Nyström, K.
Publication year

2018

Abstract

This chapter provides a literature review of existing research and identifies research gaps related to the labor mobility of both entrepreneurs and employees in entrepreneurial firms. Regarding entrepreneurs, there is a lot of research on their individual characteristics, including prior experience, and how the individual characteristics and experiences influence the performance of the firm. However, less is known on the post-entrepreneurship employment activity of entrepreneurs and how their prior experiences influence their future labor market careers.
Regarding the labor mobility of employees in entrepreneurial firms, there is an emerging stream of literature on the individual characteristics of these employees. However, many issues related to their prior experience remain unexplored. Furthermore, labor mobility after working with an entrepreneurial firm is relatively less explored at this point. Accordingly, this chapter intends to summarize current research and outline avenues for future research regarding a) pre-entrepreneurship labor mobility of entrepreneurs and b) post-entrepreneurship labor mobility of entrepreneurs, as well as c) pre-entrepreneurship labor mobility of employees in entrepreneurial firms and d) post-entrepreneurship labor mobility of employees in entrepreneurial firms. In addition, the role of institutions and, in particular, employment protection laws (EPLs) for labor mobility of entrepreneurs and employees in entrepreneurial firms are discussed.

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