Title: The role of private equity: from focus on the product to focus on value creation

Authors: Bernt Krohn Solvang, Terje Berg-Utby

Addresses: Department of Working Life and Innovation, University of Agder, Grooseveien 36, 4890 Grimstad, Norway. ' Skagerak Venture Capital AS, Box 488, 4664 Kristiansand, Norway

Abstract: As a consequence of the paradigm shift from an industrial society to an information society, the role of the entrepreneur ought to change from being an inventor of product/services to become a value creator. Hence, the focus of entrepreneurial ventures should be shifting towards creating viable business models rather than superior product/services. One major implication of the shift of entrepreneurial endeavour from product/services towards creating new business models is that hands on investors behind companies| have to be involved closer to the inception of new ventures in order to contribute to their portfolio companies.

Keywords: paradigm shift; private equity; new strategy; business logic; value creation; business concepts; resource-based view; RBV; agency theory; venture capital; future research; entrepreneurship; business models.

DOI: 10.1504/IJEIM.2009.025141

International Journal of Entrepreneurship and Innovation Management, 2009 Vol.9 No.3, pp.229 - 241

Published online: 14 May 2009 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article