Entrepreneurship & Finance Research Cluster

The intersection of entrepreneurship and finance presents a dynamic and evolving area of research with significant implications for both academics and practitioners. This integrated research cluster explores the multifaceted relationships among finance, venture capital, family business dynamics, innovation, and social entrepreneurship. By examining these interconnected areas, researchers can better understand how financial strategies, entrepreneurial ecosystems, and social impact initiatives converge to drive sustainable business practices and innovation.

Current trends in this field are increasingly focusing on various financial mechanisms and strategies that foster entrepreneurial growth and corporate sustainability.

Core themes in Venture Capital and Entrepreneurial Finance:

• Financial Planning & Sourcing for Startups: Research delves into the financial management practices that enable startups to secure funding, including alternative financing options and investor relations. The significance of venture capital funding in facilitating entrepreneurial growth and stability is critically analysed.
• Initial Public Offerings (IPOs): Research explores how IPOs impact entrepreneurial ventures, including timing, pricing strategies, and post-IPO performance. The role of market conditions and investor behaviour in influencing IPO outcomes is also a critical area of study.
• Mergers and Acquisitions (M&A): This topic examines how M&A activities serve as strategic tools for entrepreneurship, including the implications for innovation, resource allocation, and market expansion. Studies investigate factors driving successful M&A transactions and the integration of acquired firms.
• Capital Structure: Understanding how entrepreneurial firms optimize their capital structure remains vital. Research focuses on the decision-making process regarding debt and equity financing, the influence of market conditions, and the relationship between capital structure decisions and firm performance.
• Venture Capital: The role of venture capital in funding startups and fostering innovation is a critical area of inquiry. Research trends include the dynamics of venture capital investments, trends in funding rounds, the influence of venture capitalists on entrepreneurial strategy, and exit strategies.
• Valuation: Estimating the value of entrepreneurial firms presents unique challenges. Recent studies emphasize methodologies for assessing startup valuations, the impact of market conditions, and investor sentiment on valuation processes.
• Pension Funds: The engagement of pension funds in financing ventures is an emerging trend. Research investigates how institutional investors influence capital markets, and the risks and returns associated with their investments in startups and entrepreneurial ventures.

Core themes in International Business:

• Foreign Direct Investment (FDI): The mechanisms of FDI, including entry modes, governance structures, and the implications for multinational corporations(MNCs), are pivotal. This line of research examines how entrepreneurial firms navigate international expansions and enter foreign markets.
• Governance and Control: Understanding the governance structures of MNCs, particularly in the context of control mechanisms in international settings, is essential for successful entrepreneurial strategies. Research explores the balance between autonomy and oversight in managing international operations.

Core themes in Strategy:

• Corporate Strategy: The development of corporate strategies that emphasize innovation, scalability, and competitive advantage is vital. Research in this area focuses on strategic positioning and adaptive strategies in a rapidly changing business environment.
• Strategy Formulation: Investigating the processes of strategy formulation in entrepreneurial contexts sheds light on decision-making frameworks, stakeholder engagement, and the integration of financial insights into strategic planning.
• Advisors: The role of external advisors(consultants, bankers, lawyers, auditors) is critical in shaping corporate strategy and navigational challenges. Research trends focus on their influence in financing decisions and strategic pivots.
• Corporate Decline: Understanding the factors leading to corporate decline and the strategies employed for turnaround presents significant research potential. This area explores entrepreneurship as a mechanism for recovery and innovation within struggling firms.

Core themes in Family Business and Succession Planning:

• This area examines the unique challenges faced by family-owned businesses regarding financial management and succession. Research focuses on how effective succession planning impacts financial performance and the long-term sustainability of family enterprises.

Core themes in Entrepreneurial Ecosystem Development:

• The creation and nurturing of entrepreneurial ecosystems are vital for innovation and business success. Studies emphasize the roles of various stakeholders, including investors, government agencies, and educational institutions, in fostering a supportive environment for startups.

Core themes in Innovation and New Product Development:

• Design Thinking in Entrepreneurship: This area explores the application of design thinking principles in entrepreneurship, emphasizing user-centred approaches to product development and problem-solving.
• Rapid Prototyping and Minimum Viable Product Development: Research focuses on agile methodologies that allow entrepreneurs to quickly test ideas and pivot based on market feedback, minimizing risks and enhancing product-market fit.

Core themes in Social Entrepreneurship:

• Impact Entrepreneurship: This trend highlights the growing focus on creating social value alongside financial returns. Research investigates business models that prioritize social impact and the measurement of their effectiveness.
• Social Enterprise Models: Understanding various frameworks for social enterprises helps clarify how these organizations balance profit motives with altruistic goals. Research analyses the sustainability of these models within different industries.
• Social Innovation and Enterprise: This topic emphasizes the role of innovation in addressing social challenges. Studies explore how entrepreneurial ventures can leverage creative solutions to promote social change and improve community resilience.

By bridging these key areas, researchers will contribute valuable insights into building resilient entrepreneurial ecosystems and advancing social impact initiatives, thereby driving meaningful change across various sectors, and ultimately driving innovation and economic growth.