Risk Propensity differences between not for Profit and For-Profit Companies - Essay Example

Moreover, there are larger differences between entrepreneurs/not-for-profits companies whose primary goal is venture growth versus those whose focus is on producing family income.
The research question of the journal was clearly defined. MacMillan, Siegal, and Narshimha (1994) examined the methods that venture capitalists use to assess the senior managers of new ventures prior to making an investment decision. The lack of theory and empirical research in this area has led scholars to call for studies that examine the process of management team assessment in venture capital due diligence, as cited by Siegel, Siegel, and MacMillan, 1993.
This research article assessed that more research is needed on this subject matter, however, the research question of the journal article was clearly defined: there is a correlation between entrepreneurship behaviors and success. . This article provides a theoretical framework that, in the scope of the investigation, focuses on a subset of strategic actions. These actions are entrepreneurial behavior that brings forth change in the organization which leads to successful funding. The research articles I analyzed supported these three major themes: (1) entrepreneurial orientation, (2) satisfying multiple stakeholders’ demands, and (3) illustrating that different stakeholders support entrepreneurial behaviors in unique and unexpected ways. The articles offer insight into the complex balancing act that thriving entrepreneurism must execute to generate support from distinct stakeholder markets. The value this research provides is insight on thriving entrepreneurs/not-for-profits companies and financial success.
The correlation between successful entrepreneurs/not-for-profits companies depicts the behavior pattern of the individuals’ capacity to build relationships with private investors, foundations, venture capitalists, or Angels instead of with the stakeholder’s monies. In turn, the literature suggests that a thriving entrepreneur’s financial success is in how they treat the people who fund their cause. This reflects a dominant logic of causation; taking a particular effect as giving and focusing on selection between means to cause this effect (Sarasvathy, 2001).
The network theory, which is a social network approach, views organizations in society as a system of objects joined by a variety of relations. The goal of this empirical research analysis is to show that the behavior trait of being a builder of relationships is the cause of a thriving entrepreneur’s financial success.