- 15 Dec 2020
- Working Paper Summaries
Biased Sampling of Early Users and the Direction of Startup Innovation
New ventures catering to female customers should be aware that the underrepresentation of women among early users on digital platforms can reduce the venture’s growth and chances of survival. As a result of gaining fewer early users, these ventures reduce future product development and are less likely to raise VC funding.
- 30 Nov 2020
- Research & Ideas
COVID Not Slowing VC Investment
Despite the economic uncertainty, most venture capitalists expect their investments to outperform major equity indexes and are still funding new endeavors, says Paul Gompers. Open for comment; Comment(s) posted.
- 30 Nov 2020
- Working Paper Summaries
Short-Termism, Shareholder Payouts, and Investment in the EU
Shareholder-driven “short-termism,” as evidenced by increasing payouts to shareholders, is said to impede long-term investment in EU public firms. But a deep dive into the data reveals a different story.
- 27 Oct 2020
- Working Paper Summaries
Does Venture Capital Attract Human Capital? Evidence from a Randomized Field Experiment
Using a randomized field experiment conducted on a large online search platform, this study illustrates how investments by top venture capital investors attract potential employees and improve the pool of candidates available for the startup.
- 22 Sep 2020
- Research & Ideas
Recessions Push Some Entrepreneurs to Launch Too Soon
Research by Maria Roche looks at how past economic downturns forced job-insecure, high-tech entrepreneurs to rush their ventures to market. Will COVID-19 do the same? Open for comment; Comment(s) posted.
- 21 Sep 2020
- Working Paper Summaries
The Targeting and Impact of Paycheck Protection Program Loans to Small Businesses
Survey data on business owners collected by the Alignable network shows that lending to bank customers in better financial positions may have been prioritized, possibly crowding out less connected firms that would have benefitted more from the loans.
- 07 Sep 2020
- Research & Ideas
How to Help Small Businesses Survive COVID's Next Phase
For small businesses that have survived the coronavirus so far, what's next? Karen Mills outlines steps that business owners and government should take immediately. Open for comment; Comment(s) posted.
- 07 Sep 2020
- Working Paper Summaries
Entrepreneurs (Co-) Working in Close Proximity: Impacts on Technology Adoption and Startup Performance Outcomes
In one of the largest entrepreneurial co-working spaces in the United States, startups are influenced by peer startups within a distance of 20 meters. The associated advantages for learning and innovation could be lost using at-a-distance work arrangements.
- 26 Jun 2020
- Working Paper Summaries
Weak Credit Covenants
Prior to the 2020 pandemic, the leveraged loan market experienced an unprecedented boom, which came hand in hand with significant changes in contracting terms. This study presents large-sample evidence of what constitutes contractual weakness from the creditors’ perspective.
- 03 Jun 2020
- Research & Ideas
Who Guarantees Your Workplace Is Safe for Return?
Building health is today a top priority for owners and tenants, but how do we know our offices are safe to re-enter? John Macomber and Joseph Allen offer best practices. Open for comment; Comment(s) posted.
- 28 May 2020
- Research & Ideas
Coronavirus Could Create a 'Bankruptcy Pandemic'
An expected explosion in bankruptcy proceedings over the coming months could overwhelm the courts, says Stuart Gilson. Open for comment; Comment(s) posted.
- 18 Apr 2020
- Working Paper Summaries
How Are Small Businesses Adjusting to COVID-19? Early Evidence From a Survey
This survey of 5,819 small businesses in the United States shows that the pandemic has already caused massive dislocation among small businesses. Many businesses think they will not be able to survive if the crisis persists for the coming months. The immediacy of new funding will likely impact medium-term outcomes.
- 13 Apr 2020
- Research & Ideas
Small Businesses Are Worse Off Than We Thought
A survey of small-business owners shows that lack of liquidity and skepticism of government programs are compounding COVID crisis recovery efforts. Open for comment; Comment(s) posted.
- 24 Mar 2020
- Working Paper Summaries
Free Riding in Loan Approvals: Evidence From SME Lending in Peru
Using data from a large Peruvian bank trying to expand credit access to small and medium enterprises, this study shows that competing lenders use one another’s loan approvals as an input into their own approval process. Such “free riding” has great impact on market outcomes and might warrant policy intervention.
- 20 Mar 2020
- Research & Ideas
How Small Businesses Can Survive the Coronavirus Outbreak
COVID-19 will put many small businesses on life support. Karen G. Mills, who has been advising policymakers on aid options, offers guidance to owners on the brink of ruin. Open for comment; Comment(s) posted.
- 13 Jan 2020
- Research & Ideas
Do Private Equity Buyouts Get a Bad Rap?
Elizabeth Warren calls private equity buyouts "Wall Street looting," but a recent study by Josh Lerner and colleagues shows they have both positive and negative impacts. Open for comment; Comment(s) posted.
- 05 Nov 2019
- Working Paper Summaries
The Economic Effects of Private Equity Buyouts
Private equity buyouts are a major financial enterprise that critics see as dominated by rent-seeking activities with little in the way of societal benefits. This study of 6,000 US buyouts between 1980 and 2013 finds that the real side effects of buyouts on target firms and their workers vary greatly by deal type and market conditions.
- 15 Oct 2019
- Cold Call Podcast
Goldman Sachs’ $500 Million Bet on Small Businesses
Launched during the financial crisis in 2009, the Goldman Sachs 10,000 Small Businesses Program provided free business education, support, and access to capital for small businesses, graduating 7,300 participants. Len Schlesinger discusses the program's impact. Open for comment; Comment(s) posted.
- 02 Oct 2019
- Working Paper Summaries
The Value Potential of New Business Models
A business model determines the opportunity’s value creation potential and suggests how the resulting value might be distributed among participants pursuing that model. Strategists need to understand the interaction of elements of the job to be done and asset configuration in order to create differing strategic prescriptions.
Dog Eat Dog: Measuring Network Effects Using a Digital Platform Merger
With heated debate over antitrust regulation of online platforms, this study finds that when a larger platform acquired its greatest competitor, users were not better off with a single platform compared to two competitors, despite marked efficiency improvements experienced by the acquiring platform.