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Sense and sensibility: The role of business incubator client advisors in assisting high-technology entrepreneurs to make sense of investment readiness status

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  • Maura McAdam
  • Susan Marlow

Abstract

For high-technology entrepreneurs, attaining an appropriate level of investment to support new ventures is challenging as substantial investment is usually required prior to revenue generation. Consequently, entrepreneurs must present their firms as investment ready in the context of an uncertain market response and an absence of any trading history. Gaining tenancy within a business incubator can be advantageous to this process given that placement enhances entrepreneurial contact with potential investors whilst professional client advisors (CAs) use their expertise to assist in the development of a credible business plan. However, for the investment proposal to be successful, it must make sense to fund managers despite their lack of technological expertise and product knowledge. Thus, this article explores how incubator CAs and entrepreneurs act in concert to mould innovative ideas into plausible business plans that make sense to venture fund investors. To illustrate this process, we draw upon empirical evidence which suggests that CAs act as sense makers between venture fund managers (VFMs) and high-technology entrepreneurs, yet their role and influence appears undervalued. These findings have implications for entrepreneurial access to much needed funding and also for the identification of investment opportunities for VFMs.

Suggested Citation

  • Maura McAdam & Susan Marlow, 2011. "Sense and sensibility: The role of business incubator client advisors in assisting high-technology entrepreneurs to make sense of investment readiness status," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 23(7-8), pages 449-468, September.
  • Handle: RePEc:taf:entreg:v:23:y:2011:i:7-8:p:449-468
    DOI: 10.1080/08985620903406749
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    Cited by:

    1. Han, Shaojie & Su, Jingqin & Lyu, Yibo & Liu, Qing, 2022. "How do business incubators govern incubation relationships with different new ventures?," Technovation, Elsevier, vol. 116(C).
    2. Li Xiao & David North, 2017. "The graduation performance of technology business incubators in China’s three tier cities: the role of incubator funding, technical support, and entrepreneurial mentoring," The Journal of Technology Transfer, Springer, vol. 42(3), pages 615-634, June.
    3. Lukeš, Martin & Longo, Maria Cristina & Zouhar, Jan, 2019. "Do business incubators really enhance entrepreneurial growth? Evidence from a large sample of innovative Italian start-ups," Technovation, Elsevier, vol. 82, pages 25-34.
    4. Vincent Blok & Sander Thijssen & Stefano Pascucci, 2017. "Understanding Management Practices in Business Incubators: Empirical Evidence of the Factors Impacting the Incubation Process," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(04), pages 1-23, August.
    5. Klofsten, Magnus & Lundmark, Erik & Wennberg, Karl & Bank, Nata, 2020. "Incubator specialization and size: Divergent paths towards operational scale," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    6. Sullivan, Diane M. & Marvel, Matthew R. & Wolfe, Marcus T., 2021. "With a little help from my friends? How learning activities and network ties impact performance for high tech startups in incubators," Technovation, Elsevier, vol. 101(C).
    7. Kuratko, Donald F. & Neubert, Emily & Marvel, Matthew R., 2021. "Insights on the mentorship and coachability of entrepreneurs," Business Horizons, Elsevier, vol. 64(2), pages 199-209.
    8. Vershinina, Natalia & Rodgers, Peter & Tarba, Shlomo & Khan, Zaheer & Stokes, Peter, 2020. "Gaining legitimacy through proactive stakeholder management: The experiences of high-tech women entrepreneurs in Russia," Journal of Business Research, Elsevier, vol. 119(C), pages 111-121.
    9. Isabel Diez-Vial & Angeles Montoro-Sanchez, 2017. "Research evolution in science parks and incubators: foundations and new trends," Scientometrics, Springer;Akadémiai Kiadó, vol. 110(3), pages 1243-1272, March.
    10. Brian J. Bergman & Jeffery S. McMullen, 2022. "Helping Entrepreneurs Help Themselves: A Review and Relational Research Agenda on Entrepreneurial Support Organizations," Entrepreneurship Theory and Practice, , vol. 46(3), pages 688-728, May.
    11. Christian Sandström & Karl Wennberg & Martin W. Wallin & Yulia Zherlygina, 2018. "Public policy for academic entrepreneurship initiatives: a review and critical discussion," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1232-1256, October.
    12. Berna Beyhan & Derya Fındık, 2022. "Selection of Sustainability Startups for Acceleration: How Prior Access to Financing and Team Features Influence Accelerators’ Selection Decisions," Sustainability, MDPI, vol. 14(4), pages 1-23, February.

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