Funders and founders: partners in good times and in bad?
by Mika Westerlund; Diane A. Isabelle; Risto Rajala; Seppo Leminen
International Journal of Globalisation and Small Business (IJGSB), Vol. 8, No. 3, 2016

Abstract: Based on a sample of 3097 small firms, we investigated how Finnish entrepreneurs perceive the relationship between corporate ownership structure and growth orientation. In particular, we investigated the type of ownership that entrepreneurs would provide to different types of funders in exchange for investment. Our empirical results suggest that the more growth-oriented the firm, the more accepting the entrepreneur of funders taking ownership that allows a strategic role in the company. Conversely, entrepreneurs in non-growth-oriented firms favour investors that will finance the operations without exerting power and influencing decision-making. Further, entrepreneurs in firms that are about to cease operations, generally due to weak economic conditions, are as likely to accept strategic ownership as high-growth-oriented firms. This study contributes to the literature by confirming the link between growth orientation and ownership structure in small firms, and by highlighting variations in entrepreneurial acceptance of different types of investor ownership.

Online publication date: Mon, 14-Nov-2016

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Globalisation and Small Business (IJGSB):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email