Knowledge that Transforms

Self–employment is often seen as an attractive alternative to wage employment, despite lower welfare protection, higher risks, and more required effort than in the latter. It is then important to investigate why individuals choose self–employment. In addition to potential earnings, other factors may be considered, including displacement, uncertainty, unemployment risk, and dissatisfaction. Building on a job quits model, we propose an empirical representation of transitions to self–employment, which includes subjective evaluations of pecuniary and nonpecuniary satisfaction on the previous job. Additionally, we focus on the dynamics of job satisfaction, highlighting the role played by shocks in subjective evaluations.

The article focuses on the intention of Osmo Suovaniemi, the chief executive officer (CEO) of the family-owned biotechnology company Biohit established in Finland 1988, to pass his position to someone who do not belong to the company. Topics include the entrepreneurial career of Suovaniemi, the reflections of the managers regarding the future of the company, and the hopes of the executives for the diagnostics products of the company.

This case concerns Bio3 Research, a small biotechnology company established in Italy in 2001 that focuses on cardiovascular disorders, connective tissue regeneration, and renal disorders. The case reports on Dr. Pilato, founder and chief executive officer of Bio3 Research, while reflecting with his chief operating officer on the investments required to finance his patents and products pipeline. The case offers a discussion around the entrepreneurial process of Bio3 Research, from opportunity identification to opportunity development and exploitation. The case then reveals Bio3 Research's business model and examines its activities and management practices in the patent market. In a recessive world economy, Bio3 Research has an exciting portfolio of patents and products in high–growth markets but must decide between financial options, as the company cannot exploit all of these opportunities on its own.

Beth Reuben, charged with business development, has been with Parlance Communications (ParCom) for a little over a year. Chief executive officer and founder, Dr. Emmanuel Cole, has instructed Beth Reuben to prepare the strategy for ParCom's entry into Mexico and handle a trade show in Mexico City, Mexico, in 3 months.

Phyllis Gamble and her business partner, Mechelle Slaughter, had purchased the CLIFTEX Theatre in Clifton, Texas, in 2008 and had spent a great deal of time and money restoring this historic venue. The theater had been founded in 1916 and was the oldest continually operating theater in the state of Texas. The primary purpose for the purchase and restoration of the theater by the two women had been to give something back to a community which they had grown to love. They had never expected it to be profitable as long as they operated it; however, they had envisioned an exit strategy in which they would be able to achieve sustainability at some point for the theater so that they could hand it over to a member of the community who could use the business for his/her own livelihood. An immediate question they were facing in 2011 was whether or not to spend $75,000 to replace reel–to–reel with digital projection. The transformation would provide better sound and picture quality but would be very expensive to implement. There was the related issue of whether the digital equipment might allow them to host other events that might make the theater profitable.

This case follows entrepreneur David Belaga's journey in identifying, licensing, and commercializing a National Aeronautics and Space Administration patent for a novel beverage that helps astronauts and athletes stay hydrated. The case reviews the entrepreneurial processes of identifying an opportunity, licensing the technology, creating a supplier network, assembling a board of advisors, developing a social media strategy, and fine–tuning the marketing mix. The case ends with Belaga's major challenge of reaching new customer markets.

This case presents challenges facing a student–run venture accelerator at a major university in the United States. The student–run model has attracted much media attention for its uniqueness, but it has also raised questions about its sustainability. Signals from a new dean, not invested in the student model, are putting much pressure on the student–chief executive officer to change course—to tweak the student–run model and fight for its future or cave in to pressures to “professionalize” it and let students take a backseat in management. The case highlights challenges in entrepreneurial leadership of a student–run accelerator at the point of initial growth.

This paper analyzes whether or not the simple theory of income choice, which indicates there is a positive relationship between economic adversity and entrepreneurship, is applicable to all groups and may have been overgeneralized in entrepreneurship research. Using social stratification theory and the resource–based view, I explore how accumulated resource position differences between advantaged and disadvantaged entrepreneurial actor groups could result in their employing different strategies when exposed to economic adversity. I find that economic adversity has no relationship with entrepreneurship (self–employment rates) in advantaged or disadvantaged groups, and these groups use resources divergently due to their converse resource positions.

We explore the governance role of trusts in family firms and develop a typology that maps different configurations of boards and trustees with the longevity and efficiency of family firms. Suggestions are given for the proposed effects of these configurations, and comparisons are made with Carney, Gedajlovic, and Strike's “dead money” discussion. Recognition is given to the fact that the dynamics of family firms is inextricably linked to the life cycle of families, and that governance mechanisms need to react to changes and developments during the life cycle if the family firm is to be conserved.