The role of management in fostering startup development with venture investments
DOI:
https://doi.org/10.51599/is.2023.07.04.11Keywords:
startup development, venture investments, effective management, investor-management, collaboration, strategic decision-making, new trends, sustainable growth.Abstract
Purpose. This article delves into the intricate interplay of startup development and venture investments, aiming to identify the critical role of effective management in managing startups to success. The purpose is to provide a comprehensive exploration of the startup ecosystem, venture investment dynamics, and the strategic responsibilities of management in fostering sustainable growth.
Results. Our research unfolds across distinct sections, starting with an overview of the startup ecosystem and the definition of venture investments. Real case studies show successful startups, emphasizing the symbiotic relationship between strategic funding and adept management. The strategic role of management is dissected, encompassing leadership, decision-making, and the creation of high-performance teams. Investor-management collaboration is scrutinized through detailed case analyses and an advanced table outlining key elements.
Scientific novelty. Scientific novelty lies in the the detailed study of the evolution of the role of management in the changing landscape of venture investments. New trends in startup development, combined with strategic recommendations, provide a forward-looking perspective. The article contributes to the scientific discourse by uncovering the intricate connections between investor relations, management strategies, and the success trajectory of startups.
Practical value. The practical value of this research extends to startups, management teams, and investors. The recommendations offer actionable insights, to direct startups to the development of adaptive thinking, prioritization of sustainable development and the use of technological innovations. The advanced table on investor-management collaboration serves as a practical tool for fostering transparent communication and balancing stakeholder interests. Furthermore, the outlined future research avenues beckon scholars and industry stakeholders to explore novel dimensions, ensuring continuous adaptation to the evolving landscape of venture investments and startup development.
References
Aljuwaiber, A. (2021). Entrepreneurship research in the Middle East and North Africa: trends, challenges, and sustainability issues. Journal of Entrepreneurship in Emerging Economies, 13(3), 380–426. https://doi.org/10.1108/JEEE-08-2019-0123.
Aminova, M., Mareef, S., & Machado, C. (2020). Entrepreneurship ecosystem in Arab world: the status quo, impediments, and the ways forward. International Journal of Business Ethics and Governance, 3(3), 1–13. https://doi.org/10.51325/ijbeg.v3i3.37.
Angulo-Guerrero, M. J., Bárcena-Martín, E., Medina-Claros, S., & Pérez-Moreno, S. (2023). Labor market regulation and gendered entrepreneurship: a cross-national perspective. Small Business Economics, 62(2), 687–706. https://doi.org/10.1007/s11187-023-00776-0.
Cacciotti, G., Hayton, J. C., Mitchell, J. R., & Allen, D. G. (2020). Entrepreneurial fear of failure: scale development and validation. Journal of Business Venturing, 35(5), 106041. https://doi.org/10.1016/j.jbusvent.2020.106041.
Calza, F., Cannavale, C., & Nadali, I. Z. (2020). How do cultural values influence entrepreneurial behavior of nations? A behavioral reasoning approach. International Business Review, 29(5), 101725. https://doi.org/10.1016/j.ibusrev.2020.101725.
Chen, H. (2022). The impact of intellectual property protection on the development of digital economy and regional entrepreneurial activity: evidence from small and medium enterprises. Frontiers in Psychology, 13, 951696. https://doi.org/10.3389/fpsyg.2022.951696.
Deloitte. (2021). VC human capital survey, 3rd ed. Available at: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/audit/vc-human-capital-survey-3rd-edition-2021.pdf.
Dutta, N., & Meierrieks, D. (2021). Financial development and entrepreneurship. International Review of Economics & Finance, 73, 114–126. https://doi.org/10.1016/j.iref.2021.01.002.
Glasner, J. (2022). “Great Resignation” drives billions in VC dollars to upskilling startups. CrunchBase News. Available at: https://news.crunchbase.com/startups/worker-upskilling-training-reskilling-startups-vc-funding-guild-education.
Hu, S., Gu, Q., & Xia, J. (2022). Problemistic search of the embedded firm: the joint effects of performance feedback and network positions on venture capital firms’ risk taking. Organization Science, 33(5), 1889–1908. https://doi.org/10.1287/orsc.2021.1513.
Kantis, H., & Federico, J. (2020). A dynamic model of entrepreneurial ecosystems evolution. Journal of Evolutionary Studies in Business, 5(1), 182–220. https://doi.org/10.1344/jesb2020.1.j072.
Kerr, W. R., & Mandorff, M. (2023). Social networks, ethnicity, and entrepreneurship. Journal of Human Resources, 58(1), 183–220. https://doi.org/10.3368/jhr.58.3.0719-10306R2.
Li, H., Ali, M. S. E., Ayub, B., & Ullah, I. (2023). Analysing the impact of geopolitical risk and economic policy uncertainty on the environmental sustainability: evidence from BRICS countries. Environmental Science and Pollution Research. https://doi.org/10.1007/s11356-023-26553-w.
Lin, L. (2022). Venture capital in the rise of sustainable investment. European Business Organization Law Review, 23(1), 187–216. https://doi.org/10.1007/s40804-021-00238-8.
Lo, J. Y., Xu, L., & Park, H. D. (2023). Hot markets, sociocognitive cues, and new market entry in the US venture capital industry. Entrepreneurship Theory and Practice, 48(2), 478–505. https://doi.org/10422587231173687.
Luchman, J. N. (2021). Determining relative importance in Stata using dominance analysis: domin and domme. The Stata Journal, 21(2), 510–538. https://doi.org/10.1177/1536867X211025837.
Nosova, S., & Norkina, A. (2021). Digital technologies as a new component of the business process. Procedia Computer Science, 190, 651–656. https://doi.org/10.1016/j.procs.2021.06.076.
Polozova, T., Kutsenko, Y., & Kanova, O. (2022). Formation of sustainable investment attractiveness of regions under the conditions of COVID-19. Problemy Ekorozwoju, 17(1), 23–35. https://doi.org/10.35784/pe.2022.1.03.
Schnitzer, M., & Watzinger, M. (2022). Measuring the spillovers of venture capital. The Review of Economics and Statistics, 104(2), 276–292. https://doi.org/10.1162/rest_a_00937.
Sokil, O., Podolchak, N., Kniaz, S., Sokil, Y., & Kucher, L. (2022). Sustainable development prediction of start-ups in Ukraine. Journal of Environmental Management and Tourism, 13(7), 1901–1910. https://doi.org/10.14505/jemt.v13.7(63).10.
The U.S. Department of State (2023). 2022 Report on International Religious Freedom. Washington, DC. Available at: https://www.state.gov/reports/2022-report-on-international-religious-freedom.
The World Economic Forum (WEF) (2022). The Global Competitiveness Index Report. Available at: https://www.weforum.org/publications/the-global-competitiveness-report-2020.
Tubadji, A., Dietrich, H., Angelis, V., Haas, A., & Schels, B. (2021). Fear-of-failure and cultural persistence in youth entrepreneurship: comparative analysis: Greece versus Germany. Journal of Small Business & Entrepreneurship, 33(5), 513–538. https://doi.org/10.1080/08276331.2019.1692999.
Ute, S., Zbierowski, P., Pérez-Luño, А., & Klausen, A. (2021). Entrepreneurship during the Covid-19 Pandemic: a global study of entrepreneurs’ challenges, resilience, and well-being. King’s Business School. https://doi.org/10.13140/RG.2.2.27289.44640.
Zhang, J., & Wang, Y. (2022). How to improve the corporate sustainable development? The importance of intellectual capital and the role of investor confidence. Sustainability, 14(7), 3749. https://doi.org/10.3390/su14073749.