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The growth of business groups by habitual entrepreneurs: the role of entrepreneurial teams

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Author Info

  • Donato Iacobucci

    ()
    (Dipartimento di Ingegneria Informatica, Gestionale e dell’Automazione, Università Politecnica delle Marche)

  • Peter Rosa

    ()
    (Centre for Entrepreneurship Research, Management School & Economics, University of Edinburgh)

Abstract

Previous research demonstrates that entrepreneurial processes underpin the growth of business groups. A business group is a set of companies controlled by the same entrepreneur. Case studies of portfolio entrepreneurs suggest that one of the main reasons for business group formation is the need to create an entrepreneurial team, which is achieved by giving minority shares in the new ventures to others, mainly former employees. This enhances the portfolio entrepreneur’s ability to grow and diversify the businesses under their control. The paper identifies and discusses the different types of entrepreneurial teams developed by portfolio entrepreneurs, and their dynamics.

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File URL: http://193.205.129.80/repec/cme/wpaper/cmetwp_04_2009.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by c.MET-05 - Centro interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione in its series Working Papers with number 0904.

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Length: 35 pages
Date of creation: Aug 2009
Date of revision: Nov 2009
Handle: RePEc:cme:wpaper:0904

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Web page: http://www.cmet.it
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Keywords: Business groups; entrepreneurship; entrepreneurial teams;

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Cited by:
  1. Anaïs HAMELIN, 2013. "Does Size Matter? Firm And Business Group Size Influence On The Benefits Of Group Affiliation," Working Papers of LaRGE Research Center 2013-10, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
  2. Erik Stam, 2010. "Growth beyond Gibrat: firm growth processes and strategies," Small Business Economics, Springer, vol. 35(2), pages 129-135, September.

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