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High Growth Enterprises: The Role of Founder Characteristics and Venture Policies 1st Edition Mathew J Manimala full chapter instant download
High Growth Enterprises: The Role of Founder Characteristics and Venture Policies 1st Edition Mathew J Manimala full chapter instant download
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High Growth
Enterprises
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The Role of
Founder Characteristics
and Venture Policies
B1948 Governing Asia
The Role of
Founder Characteristics
and Venture Policies
Mathew J. Manimala
World Scientific
NEW JERSEY • LONDON • SINGAPORE • BEIJING • SHANGHAI • HONG KONG • TAIPEI • CHENNAI • TOKYO
Published by
World Scientific Publishing Co. Pte. Ltd.
5 Toh Tuck Link, Singapore 596224
USA office: 27 Warren Street, Suite 401-402, Hackensack, NJ 07601
UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE
For photocopying of material in this volume, please pay a copying fee through the Copyright Clearance
Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA. In this case permission to photocopy
is not required from the publisher.
Printed in Singapore
To
My beloved Mother,
Marykutty James Manimala,
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Foreword
vii
mirrors.
In keeping with this line of thought, transformative enterprises recali-
brate profit and question GDP measures of production that neglect indi-
vidual and social well-being. Such an enterprise does not aspire solely to
create a financial return for itself and its shareholders, as its profits,
aligned with investment and personnel costs, are used first to sustain and
renew itself and then return the money to shareholders. Humanity needs
transformative enterprises whose development is attractive because they
do not forget the general good of getting the most out of their mobilized
resources to safeguard their interests.
Mathew Manimala’s book has the virtue of immersing those who
enter his entrepreneurial landscape in an appreciation of growth that
ensures the highest degree of prosperity for all, not as a ceaseless accumu-
lation of material wealth. Growth aims to enrich the culture and work of
the mind and spirit to live in a better world. Life allows us to safeguard
nature and enjoy the gifts it offers us. I am sure that, in view of the find-
ings of the research reported here — which has identified socially desir-
able qualities such as the pursuit of excellence, people orientation, and
reality contact as characteristics of high-growth entrepreneurs — this
book will contribute its share toward the development of a balanced and
inclusive perspective of enterprise growth with due consideration of soci-
etal and environmental concerns among academics, practitioners, and
policymakers.
Foreword ix
References
Barnes, P. (2021). Capitalism’s most grievous flaws are, at root, problems
of property rights and must be addressed at that level. EVONOMICS,
October 24.
Kawabata, Y. (2013). The Master of Go. New York: Vintage Books. (First pub-
lished in serial form in 1951).
Piero Formica
Professor of Entrepreneurship &
Senior Research Fellow,
Innovation Value Institute,
National University of Ireland,
Maynooth, Ireland
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by THE UNIVERSITY OF HONG KONG on 02/08/23. Re-use and distribution is strictly not permitted, except for Open Access articles.
Preface
faculty exchange program supported by the European Foundation for
Management Development (EFMD), I had the opportunity to listen to
Dame Stephanie Shirley, one of Britain’s greatest female entrepreneurs.
She was at MBS to deliver the Silver Anniversary Lecture. In a thought-
provoking and inspiring address, which was partly autobiographical, she
explained the issues related to entrepreneurial start-up and growth. During
the informal interactions after the lecture, in response to a query about the
impediments to venture growth, she remarked that the biggest barrier to
her own firm’s growth at that stage was herself. While this appeared to be
rather strange to me at that time, a detailed study of entrepreneurial stories
(including hers) showed that there were many stages in the growth of
ventures, and many entrepreneurs would hesitate to go further at different
stages. Many are the reasons for such hesitation, which are discussed in
this book. In the case of Shirley, many of her innovations (such as the use
of freelancers working from home and panel members in place of employ-
ees), which significantly reduced her overheads and employee costs and
thereby contributed to the initial success of the venture, had to be aban-
doned at the growth stage. Naturally, it is stressful for any entrepreneur to
repudiate their own innovations.
Another issue that is commonly mentioned in this regard is the entre-
preneurs’ desire to retain control within the family, whereas in many
cases, family members may not be interested in or competent in taking the
business forward. This was a real problem for Shirley too, as her only son
was autistic and died at the age of 35. But the lack of successors within
xi
the family did not deter her from expanding and growing her business. On
the contrary, she professionalized the business and ‘let it go’ out of her
control. Subsequently, when the study reported in this book was con-
ducted, it was found that this loosening of control was a key characteristic
of growth-oriented entrepreneurs. Although it may not always involve the
relinquishing of full control, as was the case with Shirley, there is a
change in the control orientation of the growth-oriented entrepreneur. I
describe this as a change from ‘property orientation’ to ‘entity orientation’
(the latter being the way one would deal with a son or daughter, as
opposed to one’s property). Since the case study of Dame Stephanie
Shirley illustrates the changes required of the entrepreneur and the enter-
prise at different stages of the enterprise growth process, it is included as
Appendix 1 in this book.
It was this meeting with Dame Stephanie Shirley that prompted me to
revisit the theories on entrepreneurship, especially the phenomenon of
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enterprise growth. It is true that a single case cannot be used as proof for a
theory, but it can generate hypotheses that can be tested empirically
through further research in order to modify that theory. While considering
the story of Shirley, one obvious theory that comes to mind is Everitt
Hagen’s theory that ‘status-withdrawal’, associated with disadvantaged
and marginalized groups like refugees, is the cause of entrepreneurship.
While the rise of Stephanie Shirley (née Vera Buchthal) from her refugee
status to entrepreneurial excellence aptly illustrates the validity of Hagen’s
theory, it may be pointed out that the theory does not hold in her older
sister Natale’s case. Although Natale also came to the UK from Nazi
Germany as a refugee, she didn’t become an entrepreneur but further
migrated to Australia and settled there. Her status as a ‘double refugee’ (to
the UK and later to Australia) did not make her an entrepreneur. The
empirical researcher’s responsibility, therefore, is to show that there is a
greater proportion of entrepreneurs among refugees than among the gen-
eral population, which will provide some support to the ‘status-withdrawal’
theory. However, if all refugees do not become entrepreneurs, there will
still be a question as to what else is required to convert a refugee into an
entrepreneur. It is in this context that researchers turn their attention to the
personal characteristics (motives, traits, policies, etc.) of the individual.
A similar logic would apply to the empirical research on enterprise
growth. It is possible that enterprise growth could be facilitated by several
factors, in which case one should look for the critical factor. There are
theories linking firm growth with firm profitability on the one hand and
Preface xiii
industry growth on the other, which are but common sense and need to be
tested empirically. Similarly, cases like that of Dame Shirley suggest that
the characteristics of the entrepreneur may have a major role in deciding
the growth or stagnation of a venture. Prior research studies are, therefore,
reviewed in order to assess the extent of support for the influence of these
variables on enterprise growth. Based on the findings of this review, a
study was designed for assessing the extent to which the relevant variables
are present for high- and low-growth ventures and their founders. The
variables measured (as may be seen in the Questionnaire reproduced
in Appendix 2) were as follows: (1) Venture characteristics (which in-
cluded the assessment of firm profitability, firm growth parameters, and
industry growth, among others); (2) Management practices of the venture;
(3) Personal policies of the principal promoter; (4) Work motives of the
principal promoter; and (5) Background and early experiences of the prin-
cipal promoter. The scores for these variables were then used for comput-
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ing the growth index and the interlinkages among the variables. Based on
the relationships identified through the analysis of the above data, a model
for the emergence of growth ventures is developed in this book.
Although a few research papers were published based on this work in
the UK and the subsequent work done in India, the idea of a book came
up when I became associated with the Global Entrepreneurship Monitor
(GEM) project for two years as the leader of the India team. Being a con-
sortium of researchers from different countries, the GEM project had
more than 30 country teams working with it at that time and had a fair
representation from all the major countries. One of the interesting (but at
the same time, disappointing) findings about the global entrepreneurial
scenario was that the growth expectations of entrepreneurs were abys-
mally low. The proportion of entrepreneurs expecting to create at least
20 jobs in five years was less than 1%. The Indian scenario was even more
depressing; a large majority of start-ups were zero-employee ventures,
with the average number of employees being 0.08, while the average
number of employees expected by a start-up in five years was less than 2
(1.42, to be precise). Such low expectations for enterprise growth, espe-
cially when India had one of the highest TEA (Total Entrepreneurial
Activity) Index scores (as of 2002), second only to Thailand, and had
average or above average scores on many of the Entrepreneurial
Framework Conditions (EFCs), could naturally be interpreted as some
kind of ‘growth unwillingness’ on the part of entrepreneurs. The same was
true for most other countries involved in the GEM studies.
xv
Acknowledgments
help and guidance received from several individuals and agencies are
gratefully acknowledged.
xvii
I wholeheartedly thank all of them and the many others who could not
be mentioned here by name. Their contributions in enriching the content
and enhancing the readability of this book are greatly appreciated.
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Contents
vii
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xi
xv
xvii
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16
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45
47
48
51
53
54
54
55
56
xix
MÖBELSAMMLUNG.
Saal V. Aus dem Altertum und fast dem ganzen Mittelalter sind
nur ganz wenige Holzmöbel erhalten, ein Umstand, der sich aus der
Vergänglichkeit und dem geringen Werte des Materials erklären läßt.
In Ägypten haben sich in den erst in neuerer Zeit erschlossenen
Gräbern hauptsächlich Sitzmöbel vorgefunden, die uns schon eine
bedeutende Fertigkeit in der Art der Holzbearbeitung erkennen
lassen. Schnitzereien und Bemalung dienen zum Schmucke dieser
seltenen Stücke. Infolge der Ausgrabungen in Pompeji wurde es
möglich, Rekonstruktionen von antiken Möbeln vorzunehmen, die
nicht nur über die Form, sondern auch über die Technik wichtige
Aufschlüsse geben.
Die hauptsächlichste Quelle für die Geschichte des antiken
Möbels sind aber die Darstellungen auf den Werken der bildenden
Kunst, besonders auf den Vasen und den zahlreichen uns
erhaltenen Reliefs an den Tempeln und Grabdenkmälern.
Auch aus dem Mittelalter haben sich bis in das XIV. Jahrhundert
fast keine Holzmöbel erhalten, und wir müssen aus den Abbildungen
auf Kunstwerken dieser Zeit unsere Kenntnis schöpfen. Vor allem
sind die zahlreichen Miniaturenhandschriften weltlichen Inhaltes —
Romane, Historie usw. eine ergiebige Fundgrube. Erst vom XIV.
Jahrhundert an ist eine größere Zahl von Holzmöbeln auf uns
gekommen.[3] Das verbreitetste Möbel zur Zeit der Gotik war die
Truhe, ein langer rechteckiger Kasten mit einem nach oben zu
öffnenden Klappdeckel. Die Verbindung der Bretter geschah durch
Verzinken, das heißt durch das Aussägen und Verbinden von
fingerartig ineinandergreifenden Zacken.
Bei den ältesten Holzmöbeln entstehen die großen Flächen
durch das Aneinanderfügen einzelner Bretter, später bildet sich das
sogenannte Rahmensystem in der Weise aus, daß in einen Rahmen