Title: Private equity for small firms: a conceptual model of adaptation versus standardisation strategy

Authors: Khaled Soufani, Demetris Vrontis, Panikkos Poutziouris

Addresses: Department of Finance, John Molson School of Business, Concordia University, 1455 de Maisonneuve Blvd. West, Montreal, Quebec H3G 1M8, Canada. ' Marketing Department, School of Business, Intercollege, 46 Makedonitissas Avenue, P.O. Box 24005, 1703 Nicosia, Cyprus. ' Entrepreneurship and Family Business, Cyprus International Institute of Management, 21 Akademias Avenue, P.O. Box 20378, Nicosia, Cyprus

Abstract: Private equity and venture capital are a form of financing that many small businesses benefit from at different stages of their growth and development. Small firms face many challenges relating to the raising of finance. These problems can be largely due to the lack of information about the availabilty of finance. This information gap can be bridged by the suppliers of the financial products of such private equity providers through the formulation and execution of an efficient and effective marketing strategy. The strategy can be adaptive or standardised depending on whether the financing is provided directly by the private equity and venture capital firm. Or, it can also be provided through the advisers of the small firms such as accountants and financial consultants. This paper evaluates the different aspects of the marketing strategies of the private equity firms and builds a conceptual model that takes into consideration the different stages of growth and development of small firms. The adaptation versus standardisation approach is recommended depending on who is offering the financial service.

Keywords: private equity; venture capital; marketing strategies; standardisation; adaptation; small firms; small business; business financing; growth; development; SMEs; financial services.

DOI: 10.1504/IJESB.2006.009289

International Journal of Entrepreneurship and Small Business, 2006 Vol.3 No.3/4, pp.498 - 515

Published online: 15 Mar 2006 *

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