Business Commons^™

A Survey Of Retail Trade Patterns In South Dakota: 2012-2021, Rand E. Wergin

Faculty Publications

This paper provides an analysis of retail sales and retail trade in the state of South Dakota for the years 2012 to 2021. This analysis will provide valuable information to community leaders in the cities and towns of South Dakota. Along with measures such as unemployment and inflation, Retail Pull (RP) provides a measure of community’s economic health. For example, retail is often the largest employer in a city, particularly the smaller communities of South Dakota, and a robust retail sector provides a tax base to support community services. Thus, the economic health of the community depends on the viability …

Hytch Rewards: Incentivizing Sustainable Behavior, Jeff Cohu

Faculty Publications

Mark Cleveland, Co-founder and CEO of Hytch Rewards, was facing a dilemma. His technology- based startup, Hytch Rewards, was at a critical juncture in the company launch. The company

had just recorded its best quarter in company history, but the pandemic had placed the company’s future in jeopardy. Mark pulled together his team of advisors and investors and asked the question, “Should we pause, pivot, or continue to pursue the launch of the company?”

The team came back equally divided among the three options. “Some of our group said we should stop development work and place the company on hold …

Chasing The Entrepreneurial Dream: The Case Of The Poke-A-Dot Organizer, Jeff Cohu

Faculty Publications

This teaching case study examines the development and launch of a new consumer product by a solo entrepreneur and the challenges of achieving sales growth in a small, bootstrapped startup with limited resources. The case follows Jane Lee, founder and CEO of Poke-A-Dot, LLC, as she considers her next steps in pursuing her company launch. The narrative discusses the company’s history and challenges to achieve sustainable growth. Some major themes presented in the case include market validation, startup marketing strategy, and entrepreneurial passion and resilience.

Qalo: When Is It Time To Exit?, Jeff Cohu

Faculty Publications

The case follows the origin story of the startup company QALO from its inception and launch through the first few years of scaling up the business to a potential exit decision by a co-founder. The case is intended to be used in undergraduate entrepreneurship or sales and marketing courses at the junior and senior level. The case is designed to illustrate the challenges of scaling a fast-growing startup and to evaluate the options of a founder's exit strategy. The case is useful to demonstrate concepts such as lean startup methodology, sales channel selection, startup business model development, and exit strategy …

Underwriting Crowdfunding, Darian M. Ibrahim

Faculty Publications

Crowdfunding has more in common with an initial public offering (IPO) than may be readily apparent. Both are coordinated sales of securities to public investors (in crowdfunding's case, the "crowd"). Both rely on disclosure to mitigate information asymmetries between a company and its investors. Yet IPOs protect investors better for two reasons. First, companies undertaking an IPO have significant track records to disclose, unlike nascent startups. Second, IPOs are underwritten, meaning a reputational intermediary vouches for them.

This Essay considers applying underwriting to Regulation Crowdfunding (Regulation CF) to allow crowdfunding to mimic an IPO. It tackles questions such as: Who …

Amphibious Entrepreneurs And The Origins Of Invention, Kurt Sandholtz, Walter W. Powell

Faculty Publications

In this chapter, we examine entrepreneurs who carry ideas, technologies, values, and assumptions between previously unrelated spheres of economic or cultural activity, and in the process, change the existing order of things. We label such individuals amphibious entrepreneurs and explore their characteristics via four case studies. Their stories suggest a distinct species within the genus of entrepreneur: more pragmatic than heroic, and as likely to invent by not knowing any better as by calculative creation. We discuss their role in creating interstitial spaces, contrast them to other boundary-spanning actors, and identify directions for future research at the intersection of social …

Social Ties, Prior Experience, And Venture Creation By Transnational Entrepreneurs, Sarika Pruthi, Mike Wright

Faculty Publications

The interaction between resources, and host and home country contexts of transnational entrepreneurs (TEs), is important for understanding their strategies and hence performance of their ventures. Yet, how they deploy their unique experiences and social networks in the founding of ventures in multiple institutional contexts is less understood. Based on 15 in-depth interviews with TEs of Indian origin in the UK, and nine of their counterpart heads of transnational venture (TNV) operations, we explore the use of prior experience, and personal and industry ties in the founding of TNVs in their home country. Our findings show that the way TEs …

How Do Principles Textbooks Treat The Return To Entrepreneurship? The Missing Factor, John Estill, Tom Means

Faculty Publications

Principles textbooks have improved in incorporating entrepreneurship intheory. However, they still generally lack simple demonstrations of theentrepreneurial input, particularly when teaching the theory of a normal rateof return. Many texts are unclear over the definition of a normal return andits constituent parts. Our paper (1) reviews the theory of the entrepreneurialinput; (2) sorts how popular textbooks calculate a normal rate of returnconsistent with their definition of the entrepreneurial input; and (3)provides a simple numerical example that incorporates the entrepreneurialinput, which can be more fully developed in intermediate texts.

Manu Militari: The Institutional Contingencies Of Stakeholder Relationships On Entrepreneurial Performance, Shon R. Hiatt, W. Chad Carlos, Wesley D. Sine

Faculty Publications

This study examines how ventures can leverage relationships with heterogeneous government stakeholders to enhance survival in different institutional environments. We consider how the distinct resources provided from venture ties to military and political actors represent complementary strategic assets that differentially influence performance in varying political and economic environments as well as under conditions of violence and political conflict. Empirically, we examine the effect of these respective stakeholder relationships on new venture survival across 10 countries over a 65-year period. By distinguishing between the resources obtained through relationships with different types of government stakeholders and showing how the value of these …

Capabilities, Human Development, And Design Thinking: A Framework For Gender-Sensitive Entrepreneurship Programs, Tonia Warnecke

Faculty Publications

This paper discusses the ways that capabilities and human development theory can guide the creation of entrepreneurship programs, utilizing a framework of human-centered design thinking. It is well known that a variety of institutional factors shape gender outcomes and gender inequality within entrepreneurship, particularly with regard to necessity versus opportunity entrepreneurship and informal versus formal sector entrepreneurship. Failure to understand the diversity of entrepreneurial activity among women, and the connection (or lack thereof) of such activity to human freedom, leads to biased entrepreneurship programs. This paper links social economic theory and practice by: (1) discussing the ways that capabilities and …

Plastic Fantastic: The Fiberglass Boatbuilding Industry In Holland, Michigan, Geoffrey D. Reynolds

Faculty Publications

Plastic Fantastic: The Fiberglass Boatbuilding Industry in Holland, Michigan is a chapter concerning the use of fiberglass reinforced plastic (FRP) to build boats starting in the 1940s. In the 1950s boat builders discovered that fiberglass would allow them to design boats that would lead to new boat sales and increased profit margins for years to come. This technology steadily spread throughout American boat manufacturing plants, including Holland, Michigan, placing the town among the leaders in the industry.

From Woods To Water: Reviving A G-W Invader, Geoffrey D. Reynolds

Faculty Publications

From Woods to Water: Reviving a G-W Invader is an article concerning the full restoration of a 1972 G-W Invader 10.3' Rally fiberglass boat by high school students Peter Reynolds, Gurjinder Sandhu, and instructor Geoffrey Reynolds, during May and June 2016.

Un Estudio Comparado Del Valor Económico Y Social De Dos Universidades Adventistas, Gus Gregorutti

Faculty Publications

This study seeks to understand the key factors that contribute tothe successful continuation of the food industries of two Adventistuniversities in Colombia and Peru. These factories have been contributingsocially and economically through employment opportunitiesfor students from lower social strata. The study gathered data froma series of interviews with managers of both factories. The resultsshowed that the success of continuity and contribution is relatedto efficient administrative relations between universities and factoriesand a culture of innovation that seeks to have the best humanresources to adapt to markets. Respondents also expressed someconcerns for the future performance of the current model of university-industry. The …

Are The Parents To Blame? Predicting Franchisee Failure, Ilan Alon, Michèle Boulanger, Everlyne Misati, Melih Madanoglu

Faculty Publications

The Small Business Administration (SBA) supports franchising by backing up loans issued by regular lending organizations. However, the SBA does not directly consider firm strategies as part of its lending process. To appreciate how franchisor characteristics influence franchisee failure, we developed a heuristic model using the methodology and power of predictive analytics. We use multi-year data from the World Franchising Council’s surveys on franchisors’ characteristics and from the SBA on franchisee loan defaults. The data cover 271 diverse US franchise chains that are present in both databases. Our model predicts potential defaults of SBA-backed loans issued to American franchisees and …

The Clash Of Missions: Juxtaposing Competing Pressures In South Africa's Social Enterprises, Emmanuel T. Kodzi

Faculty Publications

Social enterprises seek critical resources to fulfill their mission in a defined domain of action. However, this quest also constitutes a distraction that complicates the operations of any social enterprise. By analyzing the logic of control versus the logic of empowerment for operating scenarios in South Africa, we examine the process trade-offs that enhance or limit social impact. Our findings prioritize efficiency in resolving process trade-offs, since the focus on value creation diminishes the replenishment cycle for value capture. We propose that value chain processes be controlled to the extent that the enterprise acts as a custodian of community empowerment …

Law And Entrepreneurial Opportunities, D. Gordon Smith, Darian M. Ibrahim

Faculty Publications

No abstract provided.

From Craft To Industry: The Boat Builders Of Holland, Geoffrey D. Reynolds

Faculty Publications

The article From Craft to Industry: The Boat Builders of Holland is an article concerning the history of ship and boat building in the Holland, Michigan area from 1836-2013.

Should Angel-Backed Start-Ups Reject Venture Capital?, Darian M. Ibrahim

Faculty Publications

The conventional wisdom is that entrepreneurs seek financing for their high-growth, high-risk start-up companies in a particular order. They begin with friends, family, and "bootstrapping" (e.g., credit card debt). Next they turn to angel investors, or accredited investors (and usually ex-entrepreneurs) who invest their own money in multiple, early-stage start-ups. Finally, after angel funds run dry, entrepreneurs seek funding from venture capitalists (VCs), whose deep pockets and connections lead the startup to an initial public offering (IPO) or sale to a larger company in the same industry (trade sale).

That conventional wisdom may have been the model for start-up success …

Targeting The ‘Invisible’: Improving Entrepreneurship Opportunities For Informal Sector Women, Tonia Warnecke

Faculty Publications

In the wake of global economic downturn, policymakers in many developing countries are turning their gaze upon two things: private sector-led strategies for economic growth and women’s potential to contribute to this growth. As a consequence, female entrepreneurship has been an area of particular interest to policymakers, businesses, and non-governmental organizations, and many female-targeted policies and programs have been implemented, ranging from microfinance and subsidized loans to training and incubator programs. However, the focus on entrepreneurship as a development strategy conceptualizes entrepreneurship in a particular way—as opportunity entrepreneurship. Opportunity entrepreneurs can identify available opportunities and exploit them; they are often …

Amphibious Entrepreneurs And The Emergence Of Organizational Forms, Walter W. Powell, Kurt Sandholtz

Faculty Publications

We study the emergence of organizational forms, focusing on two mechanisms—reconfiguration and transposition—that distinguish the founding models of the first 26 biotechnology companies, all created in the industry's first decade, from 1972 to 1981. We analyze rich archival data using hierarchical cluster analysis, revealing four organizational variants of the dedicated biotech firm (DBF). Three were products of reconfiguration, as executives from Big Pharma used past practices to incorporate new science. One DBF variant resulted from 'amphibious' scientists who imported organizing ideas from the academy into their VC-funded start-ups. We argue that such transpositions are fragile, yet charged with generative possibilities. …

How Do Start-Ups Obtain Their Legal Services?, Darian M. Ibrahim

Faculty Publications

This Essay is the first to examine, using responses to online surveys, the use of in-house versus outside counsel by rapid-growth start-up companies. It also explores, from the vantage point of the start-up’s entrepreneur, some reasons for that choice. The Essay tests several hypotheses derived from the economic and entrepreneurship literatures about the benefits of in-house versus outside counsel in the unique context of start-up firms.

Alternative Models Of Funding Higher Education: Past And Present Trends, Gus Gregorutti

Faculty Publications

The present study is built around the following general research question: why is Adventist higher education in a tight budget? This is approached using a comparative time frame analysis of past and present needs and characteristics affecting funding tertiary education. The main idea throughout this paper is that the different funding systems are setting up models of Adventist higher education that aren’t always the best fit for the institutional ideology and organization. Possible alternatives to shift into a more suitable funding system are provided and discusses as well.

The New Exit In Venture Capital, Darian M. Ibrahim

Faculty Publications

No abstract provided.

Financing The Next Silicon Valley, Darian M. Ibrahim

Faculty Publications

Silicon Valley’s success has led other regions to attempt their own high-tech transformations, yet most imitators have failed. Entrepreneurs may be in short supply in these “non-tech” regions, but some non-tech regions are home to high-quality entrepreneurs who relocate to Silicon Valley due to a lack of local financing for their start-ups. Non-tech regions must provide local finance to prevent entrepreneurial relocation and reap spillover benefits for their communities. This Article compares three possible sources of entrepreneurial finance—private venture capital, state-sponsored venture capital, and angel investor groups—and finds that angel groups have distinct advantages when it comes to funding innovation …

Almost Famous: The Foster Boat Company, Geoffrey D. Reynolds

Faculty Publications

Almost Famous: The Foster Boat Company is an article concering the history of the Foster Boat Company of Charlevoix, Michigan, from 1940-1952. The company made plywood boats for the American consumer, storm boats used in Germany during World War Two, and boats and other equipment for use in the Korean War conflict in the early 1950s. People associated with the company included Gar Wood, Jr., Harry G. Foster and Preston Tucker.

Tao Of Downfall: The Failures Of High-Profile Entrepreneurs In The Chinese Economic Reform, Wenxian Zhang, Ilan Alon

Faculty Publications

Through historical reviews and case studies, this research seeks to understand why some initially successful entrepreneurs failed in the economic boom of past decades. Among various factors contributed to their downfalls are a unique political and business environment, fragile financial systems, traditional cultural influences and personal characteristics. Notwithstanding that these factors should be further tested through empirical studies, those high-profile entrepreneurs are oblivious but essential actors in the grand theatre of China's economic transformation and their failures have contributed to the swift development of the Chinese entrepreneurship over the last 30 years.

The Big 5-0: Pretty Slick Turns Fifty, Geoffrey D. Reynolds

Faculty Publications

The Big 5-0: Pretty Slick Turns Fifty is an article concerning the full restoration of a 1959 SlickCraft 16' Premiere (built in Holland, Michigan by the Slick Craft Boat Company) molded plywood boat by Geoffrey Reynolds for owner, Catherine Dinco, from 2008-2009.

Developing And Assessing A Case Study For Teaching Engineering Entrepreneurship At San Jose State University, Anuradha Basu, Minnie Patel

Faculty Publications

In this paper the authors share their experience of developing a case study for teaching engineering entrepreneurship and subsequently developing assessment and instructional material for the case. We also present the lessons learned from that experience. The authors developed the case study in question on the basis of a survey of engineering students’ perceptions of entrepreneurship6. Our survey showed that many students were interested in entrepreneurship, but were hesitant about starting their own business. We proposed two complementary approaches to learning, namely, case studies and active learning, to enhance the engineering students’ understanding of the entrepreneurial process and dispel some …

The (Not So) Puzzling Behavior Of Angel Investors, Darian M. Ibrahim

Faculty Publications

No abstract provided.

Entrepreneurs On Horseback: Reflections On The Organization Of Law, Darian M. Ibrahim, D. Gordon Smith

Faculty Publications

“Law and entrepreneurship” is an emerging field of study. Skeptics might wonder whether law and entrepreneurship is a variant of that old canard, the Law of the Horse. In this Essay, we defend law and entrepreneurship against that charge and urge legal scholars to become even more engaged in the wide-ranging scholarly discourse regarding entrepreneurship. In making our case, we argue that research at the intersection of entrepreneurship and law is distinctive. In some instances, legal rules and practices are tailored to the entrepreneurial context, and in other instances, general rules of law find novel expression in the entrepreneurial context. …