Valuing an Entrepreneurial Enterprise
AbstractThis paper focuses on valuation issues and methods that are related to a closely-held entrepreneurial enterprise. This focus is motivated by the fact that the number of small closely held business start-ups, which we refer to broadly by the term entrepreneurial enterprises, continues to grow year after year, and new business ventures remain the primary source for employment growth in the United States and most industrialized nations. And, the topic of the valuation of an entrepreneurial enterprise has for the most part been ignored. The traditional approaches to the valuation of small closely held entrepreneurial enterprises are, in our view, wanting in a number of important respects. Simply, traditional valuation methods are modeled in a manner that is applicable to a going-concern business with a history of sales and revenues. That is not the case for an entrepreneurial enterprise as we define it, and thus the use of traditional valuation methods is questionable.
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Bibliographic InfoPaper provided by University of North Carolina at Greensboro, Department of Economics in its series Working Papers with number 11-20.
Length: 17 pages
Date of creation: 10 Nov 2011
Date of revision:
Entrepreneurship; Valuation; Closely-held Business;
Other versions of this item:
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-21 (All new papers)
- NEP-CSE-2011-11-21 (Economics of Strategic Management)
- NEP-ENT-2011-11-21 (Entrepreneurship)
- NEP-SBM-2011-11-21 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Audretsch & Albert Link, 2012.
"Valuing an entrepreneurial enterprise,"
Small Business Economics,
Springer, vol. 38(2), pages 139-145, February.
- Zoltan Acs & Pamela Mueller, 2006.
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Papers on Entrepreneurship, Growth and Public Policy
2006-23, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Zoltan Acs & Pamela Mueller, 2008. "Employment effects of business dynamics: Mice, Gazelles and Elephants," Small Business Economics, Springer, vol. 30(1), pages 85-100, January.
- Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-46, September.
- Audretsch, David B. & Link, Albert N., 2012.
"Valuing an Entrepreneurial Enterprise,"
Oxford University Press, number 9780199730377.
- David Audretsch & Albert Link, 2012.
"Entrepreneurship and innovation: public policy frameworks,"
The Journal of Technology Transfer,
Springer, vol. 37(1), pages 1-17, February.
- Audretsch, David B. & Link, Albert N., 2011. "Entrepreneurship and Innovation: Public Policy Frameworks," Working Papers 11-19, University of North Carolina at Greensboro, Department of Economics.
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