Power between Entrepreneurs and Investors: A Case Study

Authors

Oskari Lehtonen, Swedish School of Economics and Business Administration

Abstract

Two main approaches have been utilized to explain the relationship between entrepreneurs and their investors. The first is based on the separation of ownership and management i.e. the so-called principal-agent approach. The second emphasizes trust and cooperation in the relationship. This article offers new perspectives from which to analyze the relationship by utilizing power constructs such as dependency, power balance/imbalance and different power sources in the setting. The data are based on the author’s eighteen month period of observation as a business angel in one entrepreneurial venture.

JEL Codes

G31, G32, L26, M13

Keywords

Capital Budgeting, Fixed Investment, Inventory Studies, Capacity, Financing Policy, Risk Management, Capital Structure, Value of Firms, Goodwill, Entrepreneurship

Recommended Citation

Lehtonen, Oskari (2006) "Power between Entrepreneurs and Investors: A Case Study," Journal of Entrepreneurial Finance and Business Ventures: Vol. 11: Iss. 1, pp. 51-75.
DOI: https://doi.org/10.57229/2373-1761.1233
Available at: https://digitalcommons.pepperdine.edu/jef/vol11/iss1/6