Entrepreneurship: no guts, no glory: 3rd edition

Entrepreneurship: no guts, no glory: 3rd edition

by Rudy Aernoudt

Paperback(Third Edition)

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Overview

Entrepreneurship: no guts, no glory is a provocative scientifically reasoned book about the impact of entrepreneurship on the economy and our quality of life. The author argues for an enterprise and entrepreneurship-friendly ecosystem in Europe, and sets out concrete guidelines to achieve this.

Product Details

ISBN-13: 9781839700033
Publisher: Intersentia
Publication date: 07/08/2020
Edition description: Third Edition
Pages: 234
Product dimensions: 6.69(w) x 9.45(h) x 0.60(d)

About the Author

Rudy Aernoudt is Professor of Corporate Finance and Enterprise Policy at the Universities of Ghent and Nancy. He was Director of Cabinet at European level, at Belgian federal level, at Walloon level and at Flemish level. He was also Director-General of One Laptop Per Child, a spin-off of the Massachusetts Institute of Technology. Secretary-General for Economy and Innovation in Flanders and Chief Economist at the European Commission.

Table of Contents

Preface v

List of tables xvii

List of figures xix

Part I Enterprise and Entrepreneurship: A Policy Issue?

Chapter 1 Entrepreneurship: A State of Mind 3

Chapter 2 Entrepreneurship Culture 5

Chapter 3 Enterprise Policy: The Four Objectives …" 9

3.1. Enterprise policy at European level 10

3.1.1. Limit 1: private sector first 10

3.1.2. Limit 2: subsidiarity 11

3.1.3. Limit 3: co-decision procedure 11

3.2. Benchmarking 12

Chapter 4 Entreprise Policy in Evolution 15

4.1. First phase: big is beautiful 15

4.2. Second phase: small is beautiful 16

4.3. A patchwork of measures 16

4.4. Third phase: from SME policy to entrepreneurial policy 18

4.5. Fourth phase: industry is no longer taboo 21

Part II Enterprise Policies

Chapter 5 Start-Up Policy 27

5.1. Translation of ideas into action: the four-step approach 28

5.1.1. First step: the idea 28

5.1.2. Second step: business development 29

5.1.2.1. Business model 29

5.1.2.2. Business plan 30

5.1.3. Third step: intellectual property rights (IPR) 31

5.1.4. Fourth step: implementation 31

5.2. Ingredients of a successful start-up 32

5.2.1. Vision 32

5.2.2. Strong team prepared to work hard 32

5.2.3. Original idea 32

5.2.4. Ecosystem and network 33

5.2.5. Finance 33

5.2.6. Supporting market 33

5.2.7. Luck 34

5.2.8. Attitude 34

5.3. The pitfalls of a start-up 35

5.3.1. No market need 35

5.3.2. Insufficient capital 36

5.3.3. Team 36

5.3.4. Get outcompeted 36

5.3.5. No clear business model 37

5.3.6. Poor marketing 37

5.3.7. Timing 37

5.4. The five types of start-up motivation 37

5.4.1. Lifestyle start-ups: work to live their passion 37

5.4.2. Small business start-ups: work to feed the family 38

5.4.3. Scalable start-ups: born to be big 38

5.4.4. Buyable start-ups: born to sell 39

5.4.5. Social start-ups: driven to make a difference 39

5.5. Barriers to start-ups 40

5.6. Policy recommendations 40

Chapter 6 Growth Enablers Policy 43

6.1. The 'guts' to grow 43

6.1.1. Ingredients for growth 44

6.1.1.1. What is the customer profile? 45

6.1.1.2. A second line of business 46

6.1.1.3. Existing customers support sustained growth 46

6.1.1.3.1. Repeated orders 46

6.1.1.3.2. Status of the brand 47

6.1.1.3.3. Viral affection 47

6.1.1.3.4. Word of mouth 47

6.1.1.3.5. Advertising campaigns 47

6.1.2. Growth multipliers 47

6.1.2.1. Unleash the entrepreneur 48

6.1.2.2. Change the game with disruptive innovation 48

6.1.2.3. Target a high growth market segment 48

6.1.2.4. Come up with a breakthrough value proposition 48

6.1.2.5. Rapid prototypes and design thinking 48

6.1.2.6. Break into new markets 48

6.1.2.7. Make your marketing revolutionary and the competition irrelevant 49

6.1.2.8. Grow your business on the internet 49

6.1.2.9. Drive growth through operational excellence 49

6.1.2.10. Act as a multiplier instead of a diminisher 50

6.1.3. Develop growth strategies 50

6.1.3.1. Market segmentation 50

6.1.3.2. Levering partnerships 50

6.1.3.3. Use checklists 50

6.1.3.4. Become the market leader, not a follower 51

6.1.4. Implementing growth strategies 51

6.1.4.1. Organisation capabilities 51

6.1.4.2. Performance management system and scorecard 52

6.1.4.3. Leadership 53

6.2. Mergers and acquisitions 54

6.2.1. Reasons and drawbacks for mergers and acquisitions 55

6.2.2. Different types of merger and acquisition: friendly or hostile? 56

6.2.2.1. A friendly takeover 57

6.2.2.2. A hostile takeover 58

6.2.2.3. A reverse takeover 58

6.2.2.4. A backflip takeover 59

6.2.2.5. A management buy-out (MBO) 59

6.3. Policy recommendations 59

6.3.1. From start-up to high-growth focus 59

6.3.2. Rationale for support to high-growth firms 61

6.3.3. Barriers to unlock the potential of high-growth firms 61

6.3.3.1. Finance growth 65

6.3.3.2. Red tape 65

6.3.3.3. Fiscal and social security 65

6.3.3.4. Mindset 66

6.4. Case study: Flanders' gazelles' policy 67

6.4.1. What is a gazelle? 68

6.4.2. The entrepreneurs' view 68

Chapter 7 Bankruptcy and Second Chance 71

7.1. Bankruptcy versus liquidation 71

7.1.1. Exception 1: the three-year period 72

7.1.2. Exception 2: the personal guarantee 72

7.2. Prebankruptcy and early warning 75

7.3. Out-of-court settlements 76

7.4. Bankruptcy procedures 77

7.5. Post-bankruptcy and conditions for a second chance 78

Chapter 8 Retention and Reshoring Policy 81

8.1. Concepts: offshoring and reshoring 81

8.2. From offshoring to reshoring 82

8.3. Offshoring 83

8.4. The reshoring phenomenon: policy matters 84

8.5. Reshoring in the USA 86

8.6. A European reshoring policy? 87

Part III Entrepreneurship and Financing

Chapter 9 The Finance Paradox 93

9.1. Financing: a resolved issue? 93

9.2. The financing gap 95

9.2.1. The loan gap 97

9.2.2. The equity gap 99

9.3. Demand side: real entrepreneurs versus lifestyle entrepreneurs .100

9.3.1. Lifestyle entrepreneurs 100

9.3.2. Real entrepreneurs 103

9.4. Supply side 104

9.4.1. Bankers: collateral prevails over confidence 104

9.4.2. Risk capital: more capital than risk 104

9.5. The paradox explained 108

9.6. Plea for a mix of financial instruments 111

9.7. Creating awareness 113

9.7.1. Investor readiness 113

9.7.2. Mutual understanding between bankers and SMEs 114

9.7.3. Integrated finance approach 115

9.8. Conclusion 116

Chapter 10 Is the Crowd Entrepreneurial? 119

10.1. Back to the roots 119

10.2. Crowdfunding; position in the financial landscape 121

10.2.1. Crowdfunding: where does it fit? 121

10.2.2. What is crowdfunding? 122

10.2.3. Different types of crowdfunding 122

10.3. Crowdfunding platforms 123

10.4. Some examples of crowdfunding platforms 125

10.5. Recommendations for investors, investees and government 126

10.6. Conclusions 127

Chapter 11 Equity Financing: Angels and (Ad)Ventures 129

11.1. Formal or informal: what makes the difference? 129

11.2. Business angels 132

11.2.1. The investors' criteria 132

11.2.2. The investees' profile 133

11.2.3. The business angel network 133

11.2.4. Business angel academies 135

11.2.5. Policy recommendations 137

11.2.6. By way of conclusion 139

11.3. (Ad)venture capital 140

11.3.1. European financial support 143

11.3.1.1. European Investment Bank 143

11.3.1.2. European Investment Fund 144

11.3.1.3. European Commission 144

11.3.2. Five ways to promote venture capital 145

11.3.2.1. The public funds 145

11.3.2.2. The co-investment schemes 147

11.3.2.3. Fund-of-funds approach 147

11.3.2.4. Covering working costs 148

11.3.2.5. Guarantees as a tool to promote risk capital 149

11.3.3. Future action required 149

Chapter 12 Guarantees: Obsolete or Sexy? 151

12.1. Lack of collateral as the main obstacle 151

12.2. Loan guarantee scheme and mutual guarantee scheme 154

12.2.1. The share covered 156

12.2.2. Risk-sharing models 156

12.3. Policy recommendations linked to credit guarantees 157

12.4. Equity guarantee systems 159

12.5. The US equity guarantee scheme 161

12.5.1. SBIC, Tesla and Apple 163

12.5.2. Equity culture 164

12.6. The EU equity guarantee scheme 164

12.7. Policy recommendations linked to equity guarantees 165

12.8. By way of conclusion 166

Part IV Entrepreneurship: Capita Selecta

Chapter 13 Starters, Incubators, Accelerators and Hackethons 171

13.1. The concept 171

13.2. Types of incubators 173

13.3. American incubators 175

13.4. European incubators 177

13.5. Incubatio 180

13.6. Final considerations on incubators 183

13.7. Accelerators 183

13.8. Hackathons 185

Chapter 14 The Gender Gap: An Untapped Growth Potential? 187

14.1. The gender issue 187

14.2. A gender-unbalanced entrepreneurial ecosystem? 187

14.3. Female entrepreneur ship: less but better 188

14.4. Venture capital and women-led businesses: the venture capital market 190

14.5. Venture capital and women-led businesses: supply and demand 191

14.6. Venture capital and women-led businesses: subsequent financial rounds 192

14.7. Women angels 193

14.8. Conclusion: investor and policy recommendations 194

Chapter 15 Zombies, Exnovation and Innovation 197

15.1. Zombies 197

15.1.1. Impact on economy 198

15.1.2. Policy recommendations 199

15.2. Zombies and exnovation 199

15.3. Innovation 200

15.3.1. A common vision at the relevant territorial level 201

15.3.2. Ensure active involvement of residents 202

15.3.3. Create an adequate legal and fiscal framework 202

15.3.4. Encourage the development of radical innovation 203

Chapter 16 Delocalisation and the Scale-Up Gap 205

16.1. Companies leaving Europe 206

16.2. From small equity gap to scale-up gap 207

16.3. Policy options 209

16.3.1. Fund-of-funds approach 210

16.3.2. Government-backed lending schemes 212

16.3.3. Comparison of the policy options 213

16.4. Conclusion 214

Overall Conclusion 217

References 219

Other publications 229

Index 231

About the author 233

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