Contradictions of Entrepreneurial Growth: The Case of VG Instruments

What happens to entrepreneurial firms as they achieve the growth that they desire? This paper argues that growth brings with it pressures that ultimately contradict the entrepreneurial stance. In particular, the 'go getting' competitive internal structure of the firm has to adapt and change to reflect the increased importance of co-operation and teamwork as such firms mature. The author examines this question in the context of a case study of an innovative and award winning British manufacturer of scientific instruments.     

Measuring and Optimizing Portfolio Credit Risk: A Copula‐based Approach*

In this work, we present a methodology for measuring and optimizing the credit risk of a loan portfolio taking into account the non‐normality of the credit loss distribution. In particular, we aim at modelling accurately joint default events for credit assets. In order to achieve this goal, we build the loss distribution of the loan portfolio by Monte Carlo simulation. The times until default of each obligor in portfolio are simulated following a copula‐based approach. In particular, we study four different types of dependence structure for the credit assets in portfolio: the Gaussian copula, the Student's t‐copula, the grouped t‐copula and the Clayton n‐copula (or Cook–Johnson copula). Our aim is to assess the impact of each type of copula on the value of different portfolio risk measures, such as expected loss, maximum loss, credit value at risk and expected shortfall. In addition, we want to verify whether and how the optimal portfolio composition may change utilizing various types of copula for describing the default dependence structure. In order to optimize portfolio credit risk, we minimize the conditional value at risk, a risk measure both relevant and tractable, by solving a simple linear programming problem subject to the traditional constraints of balance, portfolio expected return and trading. The outcomes, in terms of optimal portfolio compositions, obtained assuming different default dependence structures are compared with each other. The solution of the risk minimization problem may suggest us how to restructure the inefficient loan portfolios in order to obtain their best risk/return profile. In the absence of a developed secondary market for loans, we may follow the investment strategies indicated by the solution vector by utilizing credit default swaps.     

Reversing deforestation? Bioenergy and society in two Brazilian models

Year after year, the deforestation rates in Brazil are alarming and this country is one of largest consumers of biomass energy in the world. In order to respond to this scenario, Brazil has developed a vast forest potential that, by the other hand, has attracted the attention of environmental groups that struggle to reduce the establishment of large-scale exotic species plantations. To respond to both pressures (the productive and environmental), the non-governmental and the private sectors have developed two innovative and independent forms of social participation for addressing this matter. The non-governmental sector created the Forest Replacement Associations and the private companies created the Small-Farmers Forest Partners Program. An overview and an analysis of both models is presented here.     

The Impact of Innovation in Small Industrial Operations to Increased Competitiveness： Empirical Evidence

The present research work in the Small and Medium Enterprise （SME） and industrial sector explains the impact of the relationship among innovation in the SME operations of Aguascalientes to find the most competitive one; to this end, a questionnaire was intended for managers where the results have been analyzed using the statistical package Structural Equation Modeling Programs （EQS） support which through structural equations has responded to the objective. In this sense, it can be concluded that innovation has a positive relationship with the operations and in turn, this relationship shows a positive impact on the competitiveness of SMEs in Aguascalientes. For this study, a sample of 150 companies has been used.