Criteria used by venture capitalists to evaluate new venture proposals

A questionnaire was administered to one hundred venture capitalists to determine the most important criteria that they use to decide on funding new ventures. Perhaps the most important finding from the study is direct confirmation of the frequently iterated position taken by the venture capital community that above all it is the quality of the entrepreneur that ultimately determines the funding decision. Five of the top ten most important criteria had to do with the entrepreneur's experience or personality. There is no question that irrespective of the horse (product), horse race (market), or odds (financial criteria), it is the jockey (entrepreneur) who fundamentally determines whether the venture capitalist will place a bet at all.The question is if this is the case, then why is so much emphasis placed on the business plan? In a business plan there is generally little to indicate the characteristics of the entrepreneur—it is generally devoted to a detailed discussion of the product/service, the market, and the competition. To us, the implications are obvious—such content is necessary, but not sufficient. The business plan should also show as clearly as possible that the “jockey is fit to ride” —namely, indicate by whatever feasible and credible means possible that the entrepreneur has staying power, has a track record, can react to risk well, and has familiarity with the target market. Failing this, he or she needs to be able to pull together a team that has such characteristics and show that he or she is capable of leading that team.Factor analysis of the results indicate that venture capitalists appear to assess ventures systematically in terms of six categories of risk to be managed. These are: risk of losing the entire investment: risk of being unable to bail out if necessary; risk of failure to implement the venture idea; competitive risk; risk of management failure; and risk of leadership failure.Finally, three clusters of venture capitalists were identified: those who carefully assess the competitive and implementation risks: those who seek easy bail out; and those who deliberately keep as many options open as possible.     

Organised industrial relations in the information economy: the German automotive sector as a test case

This paper explores changes in industrial relations in the German automotive sector. Historically, this sector has generated important insights about national ‘models’ and the political economy of work. It is argued that vertical disintegration has created new market‐mediated boundaries that have undermined existing patterns of organised industrial relations.     

Financing minority economic development

Conclusions A close analysis of the capital-asset pricing model’s assumptions and implications for efficient allocation of resources to investment in capital assets can form the basis for changes in the way capital markets are regulated by the federal government and in taxing policy of the government. In particular, our analysis indicates that the value of currently marketed assets can be increased by the inclusion in portfolios of currently nonmarketed assets.Moreover, the value of nonmarketed assets emerges as a significant instrumental variable for policy makers.The government can increase the value of all currently marketed assets by increasing positive changes in the value of nonmarketed assets.This might be accomplished by requiring by legislation or rule, for example, that a certain proportion of the listed securities on any exchange be comprised of the securities of black firms and other firms whose securities are not now marketed.The government might want, by tax incentive, to promote investment in firms with nonmarketed assets.It might want to increase the funding level of institutions such as MESBIC’S supplying equality finance to small black firms.     

The Development of Community-based Tourism: Re-thinking the Relationship Between Tour Operators and Development Agents as Intermediaries in Rural and Isolated Area Communities

The purpose of this paper is to invoke a Foucauldian framework in order to re-think the development of community-based tourism by focusing on the relationship between intermediaries and rural and isolated area communities in Papua New Guinea. Foucault's concepts of power/knowledge and governmentality provide a 'way of thinking' about this relationship that challenges the dominant discourse of the tourism industry. To further elaborate these alternative concepts, the researchers lead a discussion through a number of areas that impact on the development of community-based tourism. These include the introduction of western models of management and their ability to undermine traditional forms of knowledge, the conceptualisation of the tourist destination as interactive space, and a critique of the tourism industry through poststructuralist feminist theory. From these perspectives community-based tourism or ecotourism suggests a symbolic or mutual relationship where the tourist is not given central priority but becomes an equal part of the system.     

Quantifying the positive effects of sponsor level,length, prominence and relatedness on recall and residual recall rates over time

This study is the first multi-year examination of the relative influence of the four main variables said to influence sponsorship recall. Sponsor recall data were collected from season ticket holders (STHs) of 10 professional sports teams, over periods ranging from 3 to 5 years per team. Across those teams and over that time, 309 sponsor–team relationships were examined, and sponsor recall data from over 117,000 individual STHs were collected. Sponsorship length and level were shown to have the strongest impact on recall, followed by relatedness and prominence. These variables affected both the recall of current sponsors and the decay rates of residual recall following the end of a sponsorship. The average rates of sponsor recall growth and decline have been derived from these data, giving managers a tool by which to benchmark sport sponsorship recall performance.     

Introduction: Globalization and the Workplace in Pacific Asia

Hong Kong's economic successes are evident. As ever, the interpretation of this phenomenon at the level of politics, culture, human capital and business organization is less obvious, though a familiar list of the ‘usual suspects’ of ‘explanations’ has emerged. Hong Kong now faces new and renewed challenges which are linked to shifts in the industrial structure, emerging market demands and the interconnected upgrading of both production and human resources, in addition to the implications of reunification. Key themes of national competitiveness, deindustrialization and the upgrading of production facilities and human resources are all shown to be important, but also multi-layered and hazy concepts.     

‘Madison Avenue puts on its best hair shirt’: US advertising & its social critics

This paper examines how the American advertising industry responded to its critics in the late 1950s and early 1960s. Criticism of advertising was not new. Advertising had come under scrutiny during the Progressive era and the New Deal years. What made this wave of criticism novel was that it occurred during a period of economic affluence and relative social stability. Although recent academic scholarship from authors such as Michael Schudson (1984) and Jackson Lears (1994) has challenged the social critics, popular discourse in the English-speaking world concerning advertising's social impact still reflects the views of Vance Packard (1957) and John Kenneth Galbraith (1958). Likewise, the arguments put forward by leading advertising practitioners almost four decades ago are still found in public relations initiatives on behalf of the industry.