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Showing posts from December, 2018

Resilience and entrepreneurship

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What is the resilience theory? Resilience is the ability to get up after you fall down, whether it be physically, psychologically, cognitively, financially, socially, or economically. Resilience is expected to be an important capability of entrepreneurs because they typically face numerous failures on their way to eventual success. The idea of resilience as a virtue for entrepreneurs is appealing because it soothes the failed or failing entrepreneur. It involves a belief that continuing on despite setbacks is better than withdrawing from entrepreneurial activities. For example, the popular idea of the pivot implies the need to change directions as reality comes into focus. Ayala and Manzano (2014) find that Spanish small business owners are more resilient than the general population, highlighting the sub-construct of resourcefulness.  Bullough, Renko and Myatt (2014) focus on entrepreneurs during times of war, who show great resilience in the face of conflict. Entrepreneurial

Spinout versus spinoff: What's the difference?

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When we talk to private sector entrepreneurs and managers, there is much confusion about the difference between employee spinouts and corporate spinoffs. This confusion is due to the ambiguous use of these terms both in practice and in academia (Laplume & Yeganegi, 2024).   Employee spinout ("spinout") is the outcome of the independent decisions of employees that leave employment to start a new venture. Neither the parent organizations, nor their investors typically receive any ownership shares in a spinout. Spinouts are owned and controlled by the former employees and their own investors (often venture capitalists or angel investors). Because they often are not "authorized" or "sanctioned" by their parent organizations, spinouts may be met with hostility from parent firm managers and owners (Walter, Heinrichs, & Walter, 2014). Parent organizations may litigate against spinouts for violating fiduciary duties, breaching non-competes, non-solicitati

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