DOI: 10.5716/978-981-08-9493-1_IE54
Authors: Alaa Rady and Luis J. Sanz
Abstract:
This paper starts by providing extensive literature review on entrepreneurship, starting from how to define it, to its macro-economical impact, to the different stages of entrepreneurial start-ups. The literature goes further in the resources needed to make such entrepreneurial ventures successful, and analyzes different agency problems that can arise between the entrepreneur and other financial investors. The paper is based on two case studies of new ventures in professional service firms (PSFs) analyzing the partnership mechanisms between the entrepreneur and other financial investors, highlighting potential problems that arise in real life, how to mitigate them. One of the case studies had the luck of fixing such partnership, leading to the satisfaction of all stakeholders and the creation of a sustainable entrepreneurial venture, while the other case study faced similar problems leading it to bankruptcy.
Keywords: component; Entrepreneurship; entrepreneur; casestudies; professional service firms; sweat equity; shadow equity;resources; conflict of interest; financial investors; MENA region.
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