Foundation evidence of the relationship between entrepreneurs, financial issues and financial advisers

In this study financial advisers’ relative influence on entrepreneurs’ decisions have been investigated. Financial advisers are advisers, included in entrepreneurs’ discussion networks, with whom entrepreneurs discuss financial issues. The concept of financial adviser includes a range of different people with different functions, irrespective of whether these people provide the entrepreneur with finance or not. It may include people such as venture capitalists, business angels, bankers, accountants, advocates or management advisers. Based on follow-up surveys completed in relation to the Danish participation in Global Entrepreneurship Monitor (GEM), it was found that financial advisers only play a minor role in the two early phases of the entrepreneurial process before the venture is actually started. Entrepreneurs might have relationships with financial advisers in these stages, but only few of them are included in the discussion network. It was further revealed that the ties between financial advisers and entrepreneurs often are weaker than the ties entrepreneurs have with others in their discussion network. Two practical implications for financial advisers emerged from the study. First, they need to re-consider their role in the early phases of the entrepreneurial process in order to increase their influence and benefit from the co-operation. Second, they need to find a way to create a closer relationship with the entrepreneurs they advise.