Search Results (186)

Despite the underdeveloped formal institutional system in China’s capital market, the venture capital (VC) industry has continued to grow rapidly, exhibiting a clear trend of network formation. To better understand the formation of VC networks, this study systematically analyzes factors from three dimensions: endogenous network structures, multidimensional relational networks among VC firms, and informal networks of venture capitalists. Using data from the Wind database and other sources, networks are constructed based on 1317 investment events involving 157 VC firms. An exponential random graph model is applied to assess the effects of multiple network embeddings on VC network formation. The results reveal that, among endogenous structural factors, triad closure structures are more likely to be embedded in VC networks than two-path structures with brokerage functions. In terms of exogenous factors, the geographic distance network among VC firms exerts a negative effect on VC network formation, while knowledge proximity networks—i.e., those based on industry, investment stage, and region—positively influence VC networks formation. Informal networks of venture capitalists increase the probability of VC network formation. Compared with previous studies, this research is based on self-organization, market-oriented, and relational logics, integrating multiple factors—including endogenous network structures, venture capital firm characteristics, and venture capitalists—and introduces a cross-network perspective to build a novel multilevel network embedding ERGM framework to examine VC network formation. Furthermore, the study reveals how informal ties substitute for formal institutions in China’s VC network formation. Full article

This paper examines how artificial intelligence (AI) can act as a co-creation partner to foster social equity leading to social sustainability by addressing persistent barriers faced by women and minority entrepreneurs. We develop a theoretical framework integrating social capital theory and the resource-based view to analyze how AI can systematically address resource gaps across structural, relational, and cognitive dimensions while serving as a strategic capability that enables competitive advantage. Modern AI systems including ChatGPT, Claude, Gemini, and Perplexity represent practical technologies already operational for everyday entrepreneurs through accessible platforms, low-cost subscriptions, and no-code tools enabling workflow automation with minimal technical skill. While prior work has explored how social capital creates competitive advantages, little research explains how AI technologies specifically enhance both social capital development and resource-based competitive advantage simultaneously for ventures of underrepresented entrepreneurs. This study explicitly identifies the entrepreneurial venture as the unit of analysis and articulates five testable propositions on AI’s influence across structural, relational, and cognitive capital, clarifying mechanisms by which AI functions as a technological mediator that democratizes access to both network resources and strategic capabilities for underrepresented founders. Using AI-generated hypotheticals from Los Angeles demonstrating replicable processes with current technologies like retrieval-augmented generation and cloud AI workspaces, we show that AI-enhanced social capital can reduce venture development disparities while generating distinctive advantages for strategically adopting entrepreneurs. The framework requires empirical validation through longitudinal studies and acknowledges dependencies on infrastructure, ecosystem support, and cultural context, ultimately reconceptualizing AI as an active partner, illustrating that equity and competitive excellence are complementary and achievable through deliberate AI-enabled social capital development. Full article

While entrepreneurship is recognized as a key driver of economic development, barriers such as financing constraints, regulation, and inefficient capital allocation continue to limit its potential, especially in Widening countries. This study examines how different financing mechanisms contribute to improving business performance in innovative companies and whether such instruments trigger business model adaptation. A quantitative survey was conducted among 81 companies, and the collected data was analyzed using correlation analyses to test predefined hypotheses. The findings indicate that financing mechanisms significantly influence business improvement, with grants and venture capital showing the strongest effects. Financing also often induces adaptations in business models, partially confirming the hypothesis that such changes enhance financial outcomes. The analysis of the Global Entrepreneurship Index (GEI) further reveals that, although higher-ranked countries tend to perform better overall, no strong correlation exists between GEI ranking and access to financing. The study contributes to the literature by emphasizing the differentiated effects of financing instruments on firm growth and by offering theoretical insights and practical implications for policymakers seeking to strengthen entrepreneurial ecosystems in emerging regions. Full article

This study examines the impact of technological capabilities across industries on venture capital (VC) inflows. Technological capabilities were proxied by industry-level patent applications and R&D expenditures. VC inflows were derived from annual investment statistics published by the Ministry of SMEs and Startups and the Korea Venture Capital Association. Multiple regression analysis shows that industries with more patent applications are more likely to attract venture investments. Moreover, the relationships among patents, R&D, and venture inflows vary significantly across industries. In the biomedical industry, VC inflows show strong positive correlations with patent applications (r = 0.762, p < 0.001) and R&D investment (r = 0.900, p < 0.001). In contrast, in the information and communication technology manufacturing sector, the association between patent applications and VC inflows is not statistically significant (R² = 0.002, p > 0.05), implying that the conversion efficiency of technological outputs into investment differs according to the industrial structure. This study provides evidence of how technological development translates into commercialization and private investment. The findings contribute to a nuanced understanding of success factors in technology-based startups by industry and may serve as a foundation for the formulation of effective policy measures and investment strategies to promote private capital inflows. Full article

Venture capital (VC) is vital for innovation and economic growth, providing capital and networks to early-stage firms. While research shows a generally positive impact, challenges and failures are often overlooked, potentially creating a skewed perception of success. A review of 72 articles reveals that VC investment is concentrated in developed nations and a few emerging economies, highlighting uneven growth and the need for government interventions to promote a more balanced landscape. The review emphasises the critical importance of examining contextual factors, such as institutional frameworks and technological infrastructure, in assessing the effectiveness of venture capital in various emerging economies. This systematic review offers several key contributions with practical implications for policymakers, private investors, and the business community. First, it provides evidence-based insights into the effectiveness of VC in fostering innovation and economic growth, informing the design of targeted policies to support SME development. Second, it offers a nuanced understanding of the factors that influence the success of VC-backed SMEs in emerging economies, enabling more informed investment decisions. Third, building upon existing research, this study asserts its contribution by providing valuable, practical guidance for entrepreneurs. It offers a deeper understanding of the VC landscape, outlining both its potential benefits and inherent challenges. This enables entrepreneurs to develop more informed strategies for engaging with VC funding and maximising its impact on their businesses. The study also acknowledges limitations related to database restrictions, language bias, and limitations in search terms, suggesting avenues for future research to contribute to shaping venture capital investments and overall economic growth. Full article

Venture capital investment and hedge fund investment are two asset classes of alternative investment fund portfolios. The purpose of this study was to determine whether the digital currency named bitcoin truly adds to diversification in an alternative investment fund portfolio. Vector auto regression was used to determine any unidirectional or bidirectional relationship between variables. The DCC-GARCH test was conducted to determine any conditional correlations that impact volatility transmission over a shorter and longer duration of time between variables. The results showed that there was no unidirectional or bidirectional relationship between bitcoin and FTSE venture capital index, as well as between bitcoin and the Barclays Hedge Fund Index. The DCC model showed no volatility transmission between bitcoin and the Barclays Hedge Fund Index, whereas volatility persists between bitcoin and the FTSE Venture Capital Index, connecting risk between the financial time series with only low correlations. These findings suggest that bitcoin could be used by investors, policy makers, and hedgers for diversification in alternative investment fund portfolios. Full article

The European Union (EU) has positioned itself as a global leader in digital regulation, with landmark frameworks such as the Digital Services Act (DSA), the Digital Markets Act (DMA), and relevant AI Act. These initiatives reflect the EU’s ambition to balance technological innovation with consumer protection, market fairness, and digital sovereignty. Yet, a growing body of research suggests that the EU may be lagging its global competitors—namely the United States and China—when it comes to scaling high-growth digital enterprises and attracting investment in frontier technologies. This study investigates the paradox of regulation versus innovation in the EU by comparing key performance indicators such as R&D investment, venture capital availability, and digital innovation output with those of the U.S. and China. Drawing on datasets from WIPO, the OECD, IMF, and the World Bank, the paper incorporates both cross-sectional and longitudinal analysis to assess the EU’s digital trajectory. Findings suggest that while the EU excels in institutional frameworks and research output, structural barriers—such as regulatory fragmentation and underdeveloped capital markets—limit its global competitiveness. The article concludes by discussing policy implications and the need for adaptive governance to maintain Europe’s digital leadership. Full article

Digital Entrepreneurial Capability (DEC) is the integrated and learnable capacity that equips individuals, or founding teams, to sense, evaluate, and exploit entrepreneurial opportunities within digitally intermediated, platform-centric markets. The construct synthesises four interlocking elements. First, it requires technical dexterity: mastery of data engineering, AI-driven analytics, low-code development, cloud orchestration, and cybersecurity safeguards. Second, it draws on accumulated human capital—formal education, sector experience, and tacit managerial know-how that ground vision in operational reality. Third, DEC hinges on an opportunity-seeking mindset characterised by cognitive alertness, creative problem framing, a high need for achievement, and autonomous motivation. Finally, it depends on calculated risk tolerance, encompassing the ability to price and mitigate economic, technical, algorithmic, and competitive uncertainties endemic to platform economies. When these pillars operate synergistically, entrepreneurs translate digital affordances into scalable, resilient business models; when one pillar is weak, capability bottlenecks arise and ventures falter. Because each pillar can be intentionally developed through education, deliberate practice, and ecosystem support, DEC serves as a practical roadmap for stakeholders. It now informs scholarship across entrepreneurship, information systems, innovation management, and public-policy disciplines, and guides interventions ranging from curriculum design and accelerator programming to due-diligence heuristics and national digital literacy initiatives. Full article

Joint ventures (JVs) are an example of a government facilitated arrangement geared towards water allocation reform (WAR) designed to improve the lives of emerging farmers through participation in the agricultural economy in South Africa and other emerging countries around the world with segregated agricultural sectors. This paper will qualitatively analyse semi-structured, in-depth interviews with emerging farmers and key institutional actors to investigate the extent that JVs produced perceptible socio-economic benefits for emerging farmers in the Eastern Cape, South Africa. Socio-economic benefits are operationalised across five types of capital assets (human, natural, financial physical, social). The paper posits that an analysis of the socio-economic benefits derived from emerging farmers in JVs can be useful for informing the governance and institutional arrangements geared towards accelerating equity imperatives. The findings of the analysis, which is conducted using a sustainable livelihoods framework (SLF), reveal that factors such as level of education, formal training in agriculture, and power differentials within the partnership arrangements determine whether JVs produce tangible benefits for emerging farmers. This paper recommends the SLF be used in conjunction with concepts, tools, and modes of analysis used in other fields to address differential conditions, assets, and strategies of differentiated groups. Full article

Entrepreneurial endeavors are pivotal to development and growth. Therefore, it is critical to recognize and prioritize the need for building new, sustainable businesses that will create and offer products and services aligned with the interests of diverse stakeholders. Considering that the success of early-stage firms is shaped by both internal factors and external conditions, the aim of this study is to examine the prospects for sustainability of entrepreneurial start-ups by assessing how their strategic ecosystem influences market performance, a key metric of their capacity to successfully compete and survive. To identify performance precursors, we surveyed the founders of 108 new ventures regarding a broad range of internal determinants—including strategic factors, human resources, networking with external partners, pre-entry funding choices, and board profiles—while controlling for external influences. Our findings suggest that the performance differentials across these firms can be largely attributed to their human assets, strategic foundation, and board heterogeneity, as reflected in gender diversity in decision boards and the number of founders. Service start-ups and those that have been found in urban centers were also associated with better performance compared to manufacturing new ventures and those located in a country’s periphery. In the opposite direction, funding choices and established partnership-based networks were not related to successful market penetration. Likewise, the impact of start-ups’ industry growth, the rate of technology obsoletion, as well as several other macro-environmental influences show limited impact. Full article

Despite the acknowledged importance of capital for start-up success, gender disparities persist when trying to raise funds from external sources, including angel investors, venture capitalists, and financial institutions. Many studies have shown that gender stereotypes are harmful and prevent women from gaining access to resources, e.g., capital, distorting their start-up valuations, and influencing the resulting financing decisions. In recent years, gender-specific support measures have emerged that attempt to overcome gender inequalities in early-stage entrepreneurship, including gender-specific accelerator programs. However, there remains a lack of research on the effects of these gender-specific support programs. This study therefore investigates the influence of participating in gender-specific accelerator programs on access to angel capital, as a highly relevant source for the early financing of (women-founded) start-ups, considering signaling theory and its influence by the role congruity theory in an entrepreneurial context. A laboratory experiment involving 227 participants was conducted to explore these dynamics, reflecting perceptions of signals for angel investors. Overall, the findings suggest that gender-specific accelerator programs may positively influence perceived investment decisions by enhancing perceived team competence. Furthermore, investor gender moderates the perception of team competence. The signaling effect that (gender-specific) accelerators have on angel investors does not appear to be as great for men investors as it is for women investors. The findings contribute to signaling theory by understanding the impact of participation in (gender-specific) accelerator programs on the investment decision of angel investors while advocating for more inclusive approaches to fostering diversity and inclusivity within the start-up ecosystem. Full article

Early-stage start-up selection is a critical yet challenging task for venture capital (VC) investors due to high uncertainty, limited historical data, and rapidly evolving business environments. Traditional evaluation processes often fall short in systematically handling multiple qualitative and uncertain factors that influence start-up success. As a result, there is a growing demand for robust decision models that can support VC firms in identifying promising early-stage ventures more accurately and consistently. This study presents a hybrid fuzzy multi-criteria decision-making approach tailored to the needs of venture capital investment under uncertainty. The model integrates expert judgment using the proportional spherical fuzzy AHP method to evaluate the relative importance of key dimensions. Then, spherical fuzzy TOPSIS is applied to rank investment alternatives based on their overall performance rankings. The proposed framework enables VC decision-makers to incorporate both subjective insights and data ambiguity in a structured and transparent way. It offers a practical tool to enhance the reliability of early-stage investment evaluations and improve the effectiveness of venture capital portfolio strategies. Full article

Access to business financing in Europe has historically been a challenge for small and medium-sized enterprises (SMEs), which represent a significant share of economic activity and employment in Europe. This issue has been significantly intensified since the global financial crisis, disproportionately affecting this segment. This study analyzes firm-level determinants influencing access to alternative financing sources, including crowdfunding, venture capital, and other non-bank channels, using data from the 2023 SAFE covering 15,855 firms across Europe. Results indicate that firm size significantly affects access, with larger, established firms more likely to secure such funding. However, younger, innovation-driven firms demonstrate a higher propensity to pursue equity and crowdfunding options, driven by their need for flexible and early-stage capital. Sectoral patterns also emerge: industrial firms more often obtain public grants, while service-sector firms lead in adopting equity-based and crowdfunding models. The findings highlight the critical role of innovation capacity and international orientation in broadening financial access. Digital platforms are identified as key enablers in democratizing funding, particularly for SMEs. This research advances understanding of SME financing dynamics within evolving financial landscapes and provides actionable insights for policymakers and practitioners aiming to promote inclusive and sustainable access to finance. Full article

Green hydrogen is gaining global attention as a zero-carbon energy carrier with the potential to drive sustainable energy transitions, particularly in regions facing rising fossil fuel costs and resource depletion. In sub-Saharan Africa, financing mechanisms and structured off-take agreements are critical to attracting investment across the green hydrogen value chain, from advisory and pilot stages to full-scale deployment. While substantial funding is required to support a green economic transition, success will depend on the effective mobilization of capital through smart public policies and innovative financial instruments. This review evaluates financing mechanisms relevant to sub-Saharan Africa, including green bonds, public–private partnerships, foreign direct investment, venture capital, grants and loans, multilateral and bilateral funding, and government subsidies. Despite their potential, current capital flows remain insufficient and must be significantly scaled up to meet green energy transition targets. This study employs a mixed-methods approach, drawing on primary data from utility firms under the H₂Atlas-Africa project and secondary data from international organizations and the peer-reviewed literature. The analysis identifies that transitioning toward Net-Zero emissions economies through hydrogen development in sub-Saharan Africa presents both significant opportunities and measurable risks. Specifically, the results indicate an estimated investment risk factor of 35%, reflecting potential challenges such as financing, infrastructure, and policy readiness. Nevertheless, the findings underscore that green hydrogen is a viable alternative to fossil fuels in sub-Saharan Africa, particularly if supported by targeted financing strategies and robust policy frameworks. This study offers practical insights for policymakers, financial institutions, and development partners seeking to structure bankable projects and accelerate green hydrogen adoption across the region. Full article

Business financing involves supplying funds or capital to initiate, expand, or maintain a business. This study investigates entrepreneurial funding in South Africa, emphasizing microloans, venture capital, and gender-sensitive grants as tools to facilitate inclusive business growth. Using a qualitative desktop research methodology, this study relies on policy documents, institutional reports, and peer-reviewed studies to assess how these funding strategies tackle access barriers for marginalized populations, specifically women, youth, and rural entrepreneurs. Guided by Access to Finance Theory, Gender Finance Theory, and Innovation Ecosystems Theory, this study indicates that microloans offer immediate funding for informal businesses but show minimal long-term effects without additional assistance. Venture capital promotes rapid innovation, yet it is predominantly based in urban regions and unattainable for underrepresented populations. Grants that address gender issues foster equity but are obstructed by institutional fragmentation and insufficient scale. The results highlight the necessity for unified financing frameworks that merge financial and non-financial assistance, facilitating scalable and inclusive business ventures. Policy suggestions involve aligning public financing tools with the National Integrated Small Enterprise Development Masterplan, integrating gender-sensitive budgeting frameworks, and utilizing digital financial platforms to enhance access. Future studies should utilize mixed-methods or longitudinal approaches to assess the ongoing developmental effects of coordinated financing models within the South African setting. Full article