It's not easy being green, or why sustainability entrepreneurs sell their businesses
Type
presentation
Date Issued
2011-06-16
Author(s)
Nazarkina, Liudmila
Abstract
This paper presents a literature review and a preliminary conceptual model to address the following research question: What influences the choice of sustainability entrepreneurs to sell their businesses? Based on secondary data, I present several cases of sell-outs of sustainable lifestyle entrepreneurial firms to large mainstream corporations and question the motivation behind these sell-outs. Applying subjectivist perspective on entrepreneurship to resource dependence theory, I propose that entrepreneurial judgement, and more specifically perceived value of technological and marketing capabilities offered by a strategic investor, perceived financial capabilities of a single venture capital investor, perceived complexity of managing a syndicate of venture capital firms and, finally, perceived risk of competition, influence entrepreneurial decision to sell the business. These propositions are based on the assumption that sell out is an investment for growth, rather than a harvest strategy for an entrepreneur. I conclude this paper by summarising expected theoretical and practical contributions of my research.
Language
English
HSG Classification
contribution to scientific community
Refereed
No
Event Title
oikos Young Scholars Entrepreneurship Academy 2011
Event Location
Filzbach, Switzerland
Subject(s)
Eprints ID
171479