Using a sample of 155 IPOs that delist due to performance-related reasons shortly after going public, this paper sheds light on the motives of entrepreneurs and early investors in taking their firm public. I empirically examine the actions of insiders over the entire public life of the IPO firm...

We analyze the relationship between management support offered by venture capital firms and the performance of entrepreneurial start-ups. Based on the reasoning of the resource-based view, we use a sample of 106 German start-up companies to derive and empirically test several hypotheses. Our...

The paper deals with the issues of investment of hybrid and public venture capital funds. The results show that hybrid and public venture capital funds in Latvia in most cases are the first investors. Only a smaller part of these investments are investments of the early stages of funding. The...

This essay argues that the economic contribution of certain firms – be they small, young or rapidly growing – has to be understood in a broader context of creative destruction. Growth of some firms requires contraction and exit of some other firms to free up resources that can be reallocated...

Policymakers in several countries have recently taken steps to promote the rapid export expansion of small- and medium-sized enterprises (SMEs). The goal of these policies has been to create successful export-intensive startups, which are often referred to as born globals. These measures are...

Approximately 80% of the 9,000 wineries in the US breakeven or lose money. An even greater percentage lose money on an economic basis (i.e., after a charge for the capital employed). Tegan Passalacqua, a Californian winemaker who specializes in making “old vine” wine (i.e., wine from grape...

Businesses without employees—or nonemployer firms—make up the majority of small businesses in the United States, but little is known about their financial lives, including their business financing needs and experiences. In this paper, we discuss findings from data on nonemployer firms in the...

Many firms start as spinoff companies having the advantage of inheriting organizational routines of the parent firm. By constructing the genealogical structure of parent-spinoff relationships, one can analyze the effects of routine replication on firm success. Based on a unique dataset on the...

The contributions of the small businesses sector to the U.S. economy are often noted in periods of economic growth, and the fragility of the sector is a core focus of policy in an economic downturn. The sector is important not only because of its contributions to job growth, real economic...

This paper analyzes the relationship between corporate performance and innovative effort for a set ofSpanish companies during the 2007–2013 period. For this purpose, we use a panel data model. We findevidence that the return on equity (ROE) and, in particular, sales revenues are positively...