Venture Risk Research Articles

Partner diversity and the survival of joint ventures

ABSTRACT This paper empirically examines how sources of partner diversity affect the duration of international joint ventures (JVs). We argue that synergy effect among multi-party JVs causes complementary advantages and business resource diversity, which is conducive to the survival of JVs relationship. Our estimation results show that partners diversity not only alleviates the death risk of joint venture, but also reduces the probability of sole proprietorship of them. Moreover, partners diversity can significantly stimulate the tendency and output of joint ventures’ R&D and innovation, wherein the joint R&D as an effective method promote joint ventures’ survival and development.

Entrepreneurial orientation and socioemotional wealth as enablers of the impact of digital transformation in family firms

PurposeThe research aims to investigate how digital transformation (DT), entrepreneurial orientation (EO) and socioemotional wealth (SEW) impact the financial performance of family firms in uncertain business environments. Drawing from existing literature, we propose that DT and EO drive firm performance. Additionally, we suggest a new role for SEW, which positively moderates this relationship in family firms, especially in terms of risk behavior and innovation for survival.Design/methodology/approachWe used the STEP Consortium’s 2020–2021 database, derived from a global survey that explored how family businesses responded to environmental shocks. Following STEP’s definitions, we proposed three hypotheses and tested two models using structural equation modeling.FindingsThe findings show that EO significantly enhances the impact of DT on family firm performance. Family businesses exhibit a notable willingness to take strategic venture risks to protect their SEW. These findings align with conclusions drawn in related literature, supporting all hypothesized relationships proposed.Practical implicationsThe study has made an applied contribution by challenging the misconception that family firms are outdated and provides insights into supporting their approach to entrepreneurship, innovation and transgenerational entrepreneurship. Furthermore, it provides business families and consultants with a new view of SEW as a strategic asset.Originality/valueOur study adds to the literature by showing how entrepreneurial orientation catalyzes the positive impact of digital transformation on firm financial performance. We also highlight the contextual influence on family firm decision-makers' risk propensity, which affects SEW development and firm outcomes. This context dependency of SEW can hinder or enhance performance, offering new research and support avenues for family firms.

Retracted: Research on the College Students’ Venture Risk Assessment Model Based on the LightGBM Algorithm

Retracted: Research on the College Students’ Venture Risk Assessment Model Based on the LightGBM Algorithm

Analysis of the Influence of Back Home to Start Undertaking and Rural Revitalization Based on Artificial Intelligence

The strategy of rural revitalization is to take measures to deal with the big problem of rural decline, mainly from the aspects of developing rural economy, getting rid of poverty, and adjusting rural structure, and changing the traditional thinking of rural development when implementing policies. With the number and scale of rural laborer’s back home to start undertaking expanding continuously, it is more important to improve the quality of rural laborer’s back home to start undertaking. On the basis of analyzing the motivation and problems of rural laborer’s back home to start undertaking, this paper puts forward a risk identification model based on artificial intelligence (AI) algorithm and explores the development path of rural laborer’s back home to start undertaking under the background of rural revitalization. Through simulation experiments, the effectiveness and superiority of this algorithm are analyzed. The results show that the accuracy rate of venture risk assessment in this paper is 93.95%, and the error is 10.24% lower than that of the back propagation neural network (BPNN). It can be seen that this method has a significant effect in the analysis of the risk and influencing factors of rural laborer’s back home to start undertaking. The overall requirements of rural revitalization strategy for industrial prosperity will inevitably encourage and attract more rural laborer’s to back home to start undertaking, and “starting a business to help the poor” will become a new path for rural poverty alleviation and development in the future.

Research on the College Students’ Venture Risk Assessment Model Based on the LightGBM Algorithm

There are numerous risk factors in the school students’ entrepreneurial process. In order to advance the accuracy of school students’ entrepreneurial risk assessment within entrepreneurial practice background and reduce risk management factors, a model of school students’ entrepreneurial risk assessment grounded on the LightGBM algorithm is proposed. We construct the statistical probability density distribution and constraint parameter model of college students’ entrepreneurial risk distribution in an entrepreneurial practice environment. Moreover, we adopt the factor hierarchical classification technology of the evaluation index system to realize the framework model construction and big data fusion processing of college students’ entrepreneurial risk indicators in the entrepreneurial practice environment. Then, we extract the joint similarity feature set of college students’ entrepreneurial risk factors in the entrepreneurial practice environment and adopt the LightGBM feature detection and fuzzy matching technology. The self-adaptive optimization and fuzzy clustering analysis are realized in the procedure of school students’ entrepreneurial risk assessment under the entrepreneurial practice environment, and a fuzzy Bayesian network assessment model for school students’ entrepreneurial risk assessment under the entrepreneurial practice environment is constructed. The Delphi method is used to determine the pairwise influence relationship between factors, and the LightGBM algorithm is used to optimize the evaluation of college students’ entrepreneurial risk factors under the entrepreneurial practice environment and match rough set features. According to the comprehensive evaluation of entrepreneurial risk factors, the intelligent entrepreneurial risk assessment under the entrepreneurial practice environment is comprehended. The simulation outcomes confirm that the intelligence of college students’ entrepreneurial risk assessment in the entrepreneurial practice environment is improved, and the precision of risk assessment is greater than other approaches.

Venture Risk of Small- and Medium-Sized Sci-Tech Enterprises Based on Markov Model

Small- and medium-sized enterprises are an important part of my country’s national economy. Among the small- and medium-sized enterprises, scientific and technological small- and medium-sized enterprises account for a considerable proportion and play an extremely important role. Compared with large enterprises, technology-based small- and medium-sized enterprises have small scale and weak financial strength. In R&D activities, they will encounter external environmental risks such as market change risks and government policy restrictions. At the same time, the internal technical strength and management ability of enterprises will also affect the development effect of enterprise R&D work. Therefore, this paper will study the risk of small- and medium-sized high-tech enterprises in the start-up period through Markov model and design and experiment the feasibility and accuracy of the risk prediction model. Markov model is a probabilistic model about time series, which is used in many fields such as speech and behavior recognition and fault diagnosis. The risk prediction in this paper can play a key role. In the experiment, the accuracy of environmental risk assessment and analysis reached 74.4%, which will greatly help enterprises make reasonable development strategies to deal with the pressure from different periods and places.

Factors Affecting Broiler Breeders Following the Partnership Pattern in Gelumbang Subdistrict, Muara Enim District (An Anthropological Sociological Approach)

The partnership pattern is one of the choices of business patterns faced by boiler breeders. This study aimed to describe and analyze the factors influencing the breeders to decide to follow the partnership pattern, calculate and compare the income of broiler farming business through partnership and independent patterns and analyze the perceptions of broiler breeders on the pattern to be applied to the next business cycle. The method used in this research was a survey method and stratified random sampling. The results of the study showed that the factors of venture capital, skills, result marketing and risk of loss, the marketing factor of the results were the most significant factors affecting the decision of farmers to follow the partnership pattern. It was found that the partnership pattern provided an average profit of Rp. 40,138,384.88 higher than the independent business pattern which was only Rp. 33,029,505.00 in one production period. When viewed in terms of Return Cost Ratio (R/C), livestock business through a partnership pattern was 1.19, lower than the R/C independent livestock business with a value of 1.20. Meanwhile, for the Food Conversion Ratio (FCR), both partnership and independent livestock businesses had the same value, namely 1.26. When viewed from the performance index, the livestock business through the partnership pattern had an IP of 4.25 greater in value when compared to the independent business pattern which was only 4.19. The breeders following the partnership pattern tended to decide to continue to follow the partnership pattern even though they had sufficient capital and skills, afforded to market their products independently, and faced their own risks.
 Keywords: breeders perception, partnership pattern, determinants of decision makers

Research on the Impact of Venture Risk Tolerance on R&D Investments: Based on Entrepreneur Ability

Research on the Impact of Venture Risk Tolerance on R&D Investments: Based on Entrepreneur Ability

Exam Conduction and Proctoring System Using Face Detection

The Online Examination Portal is a web application for taking an online test productively along with face recognition capabilities to perform live proctoring, and there is no time wasted for checking the paper. This report will incorporate all highlights and procedures which are required to develop this portal. This document incorporates details about the objective of the system, approximately targets of the system, system scope confinement, essential system requirements, group advancement, likely venture risks, schedule of the deployment, and finally observing and reporting mechanisms for the whole system. Online Examination Conducting Portal is exceptionally useful for Instructive Institute's to prepare a complete exam, conduct proctoring to prevent misconduct, secure the time that will take to check the paper, and plan check sheets. Online Examination Portal will help the Institutes to test understudies and develop their abilities. But the impediments for the Online Exam systems, it takes more time when the user prepares the exam at the primary time for utilization. To conduct the exam we require the number of computers with the same number of students. With the successful use of the Examination Portal, the facilitator can utilize this system to create the tests as their requirements and we can get accurate results and save time once deployed.

VENTURE BUSINESS EFFICIENCY MANAGEMENT

Purpose. Since the venture business is a catalyst for structural adjustment and technological renewal of the country’s economic complex, small firms with the support of venture capital effectively create and sell innovations that become the basis of new economy sectors. Effective organization of venture activity requires analysis of the main trends in developing organizational forms of venture business and the creation of venture funds. This article aims to form a coherent system of indicators for evaluating the effectiveness of venture projects to manage the energy of venture business and the characteristics of these indicators. Scientists and their features present the analysis of available indicators or systems of indicators for evaluating the effectiveness of venture business. Design/methodology/approach. This study used both general scientific methods, empirical and theoretical, in particular, the process of analysis (in the study of indicators for evaluating the effectiveness of venture business), synthesis (in the formation of a coherent system of indicatorsfor assessing the effectiveness of venture business), generalization and explanation, classification, and also system (for coordination of the system of hands). Also, unique research methods were used, in particular, formal-logical and comparative forms ofscientific knowledge. Findings. The article’s indicators of evaluating the effectiveness of venture investments in innovative projects have been investigated and analyzed. A critical analysis of methodological approaches to assessing the effectiveness of venture capital has been done. It is proposed to evaluate the effectiveness of venture projects on such indicators as internal rate of return, modified internal rate of return, net present value, payback period, discounted payback period, the profitability of sales, average rate of return, discounted profitability index, and contribution index-adequate assessment of the balance of indicators for assessing the effectiveness of venture investments. Practical implications. The article proposes to evaluate the effectiveness of venture projects on such indicators as internal rate of return, modified internal rate of return, net present value, payback period, discounted payback period, the profitability of sales, average rate of return, discounted profit index and profit income which will contribute to obtaining a comprehensive and adequate assessment of the balance of indicators for assessing the effectiveness of venture investments. The formation of a coherent system of indicators for evaluating the effectiveness of venture projects will manage venture business efficiency. The intensification of venture activity in Ukraine requires developing an integrated approach, covering institutional development, legislation, and macroeconomic regulation. The story of venture business will contribute to achieving the most critical state goals: the improvement of the innovation sphere and increasing the competitiveness of the domestic economy by entering world markets. The practical application of methods for assessing investment effectiveness is carried out using indicators NPV, IRR, PP, and others. The formation of a portfolio of innovative projects based on linear programming’s classical problem can not be applied in full. That is why today, it is essential to solving issues related to the development and improvement of methods and models of venture risk analysis, assessing the attractiveness of innovative projects, and forming a creative portfolio by a venture company. The participation of venture investors in the capital ofstartups is attractive for several reasons: the presence of venture funds in shareholders tells partners and potential employees that the audit of the company means that the business is transparent and the funds risked their money in terms of growth prospects; venture capitalists help in management. After all, they have experience supporting and developing similar startups; you can use the fund’s companies’ expertise, for example, in organizing sales or preparing for an IPO. Finally, investor connections open up partnerships with other companies, attracting experienced professionals, such as marketing, commercial, financial, executive director. But experts go only to projects with a clear business structure, and venture funds guarantee its presence. Because venture investors, as mentioned above, have a foundational approach to the companies they finance and are initially focused on leaving the company by selling their stake to a strategic investor, company management, or the stock market, the key to success for them, in our view, is a growth company value.

Learning from Feedback: Evidence from New Ventures*

Abstract This article studies how early-stage entrepreneurs respond to negative feedback about the quality of their ventures. We use data from new venture competitions, some of which privately inform founders of their relative rank. The empirical strategy compares lower and higher ranked losers across competitions in which they did and did not observe their standing. Receiving negative feedback increases average venture abandonment by 13%. Differences in responsiveness—for example, in venture risk, venture maturity, and signal precision—are consistent with particular theories about entrepreneurship, including the importance of experimentation.

RETRACTED: Big data simulation for financial risk assessment of real estate bubble based on embedded system and artificial intelligence algorithm

The land is accepted as having oscillation examples and slacks from business change. Driving pointers and a few slacks of each wheel somewhat increase the risk of backing acceptance and silly desire inland giving companies. The board should consider the risks from diversity and desire and the risks from business tasks and administrations. Different types and risk levels for land board companies may differ from single financial experts. The administration of these business activities' risk is exceptional between the sizes of the companies, the scope of administration, and the geographical area and board of less land, working on and adjusting to private property. Therefore, options regarding land venture valuation should not simply be considered. Benefits, yet additionally accurately assess risk. The advantages and disadvantages are simultaneous—the more important, the more noticeable the comparable risk. Many domestic and unknown developing and economists are concerned about this problem. Develop a hypothesis and strategy for land venture risk - this will give land speculators some significant help in their venture options.

The attractiveness of investments in railways in Brazil

We analyze the main factors influencing the attractiveness of public-private partnerships (PPP) applied to Brazil. Considering the Brazilian regulatory framework, the risks involved in a railroad PPP in Brazil are quantified and the attractiveness of this investment is evaluated through Monte Carlo simulations. Results suggest that Capex and regulatory risks are the main obstacles to PPP projects in Brazil. In addition, measures have been proposed to be implemented by the government to improve the return of these enterprises. New attractiveness analyses confirm a reduction in venture risk with the proposed measures.

Effectiveness of Joint Venture for Local Contractors in a Mega Project Construction

Mega Construction Projects are defined as a very large investment construction project, or aggregate of projects, characterized by magnified cost, extreme complexity, increased risk, lofty ideals, and high visibility, in a combination that represents a significant challenge to the stakeholders, a significant impact to the community and pushes the limit of construction experience. The main objective of this study was to assess effectiveness of joint venture for local contractor to construct a mega project construction. The specific objective of this study was to determine the effective way of formation and implementation procedure, to determine legal procedures and steps of joint venture between local contractors, to analyze different kinds of joint venture among local contractors and to analyze risk of joint venture among local contractors to construct a mega project construction. The study used both qualitative and quantitative research, and data collection method used was interview, close ended questionnaires’, different books, articles, and web sites. The study uses also purposive sampling technique. The study revealed that the most motivation factor and reason to form a Joint Venture in construction is to obtain technology transfer, the most selection criteria to select a construction JV partner is ability, experience and skills of JV partner and to succeed in JV performance a JV management should be strong. The study indicated that some of the articles form the commercial code explains about JV need an amendment. The study also indicates legal issues should be considering in Ethiopian commercial code to facilitate formation construction JV. This study also revealed the best JV type suitable for local contractors to establish domestic JV is a contractual JV type. Finally, the study shows that the most factors to create a problem in construction JV is unclear partner roles and the dominant risk factor associated with construction JV is partner parent company in financial problem. Also, the study came up with conclusion that the existing legal norm context about CJV should be revised with amendment of some of the articles from the existing commercial code of Ethiopia.

Identification of Least Risk Path using GA-SVM for the Software Project Management

Risk management is an important part of the development cycles for high quality applications. Most specific threats are incidents that may adversely affect the plan or organizational climate growth. The major risk factors contains time, budget and resources can affect adversely by events. Important considerations such as plan, time and cost are generally impacted. Essentially, risk assessment includes recognizing, assessing, preparing and monitoring incidents that affect the atmosphere of the project. Risk is the danger of volatility, lack of knowledge regarding events, activities and lack of appropriate technologies for managing measures and activities. Therefore, both exogenous and endogenous influences contribute in the venture risks and uncertainties. The high task failure rates due to poor planning of project which can limit the teams and future wealth creation, while project managers should allow for the plan being to anticipate potential risks when preparing their project achievements based on their own past experiences. This paper addresses the Supervised Learning mechanism with multi-label Support Vector Classifier (SVC) to predict the project risks and apply Genetic algorithm for providing avoidance action as recommendation.

Risk, capabilities, and international venture capital syndication in China

PurposeThe purpose of this paper is to advance a holistic model of venture capital (VC) firms’ syndication decisions in an emerging economy. When considering syndication with local partners, VC firms consider multiple sources of risk related to firm-specific characteristics (life-cycle, operational and political). In conjunction with these risk factors, they also consider their own capabilities, namely, their knowledge breadth and knowledge depth. Knowledge breadth stems from a VC firm’s network position and knowledge depth is a result of its prior industry expertise. Together, these capabilities have competing impacts on VC firms’ desire to syndicate. From one perspective, VC firm capabilities may help deal with risk such that syndication may not be perceived as necessary. Alternatively, VC firm capabilities may signal attractiveness to a local partner and allow the VC firm to syndicate more easily.Design/methodology/approachFuzzy-set qualitative comparative analysis is conducted on a sample of 111 US VC firms investing in China between 1993 and 2010.FindingsLower VC firm capabilities are associated with a tendency not to syndicate with a local partner when venture risk factors are low. This pattern may arise because of such VC firms’ relative lack of experience with partnership management or weaker appeal to local partners.Originality/valueThis study is one of the earliest attempts to develop a neo-configurational perspective within the VC literature and thus contributes to a more nuanced understanding of international VC firms’ strategic behaviour in emerging economies by examining multiple risks and capabilities simultaneously and in conjunction.

Modelling the impact of entrepreneurial venture risk taking on solid waste collection capacity in Abuja, Nigeria

This research, investigated the impact of entrepreneurial venture risk taking on solid waste collection capacity in Abuja, Nigeria. The study utilised a multi-methods approach consisting of direct field observations, key informant interviews and questionnaire survey for primary data collection. Data collected were analysed using the statistical program for social sciences, SPSS version 17.0 software. Results indicate that entrepreneurial activities can be used to optimise efficiencies in sustainable solid waste management. In particular, the study found that entrepreneurial venture risk taking has a positive correlation on solid waste collection capacity with a strong significance value of 0.001. It is recommended that government should formulate policies that encourage entrepreneurial venture risk taking in order to enhance sustainable solid waste collection capacity within the case study area.

Constraints faced by small, medium and large farmers in mushroom cultivation

Mushroom cultivation is one of the most economical ways of upgrading income of the farmers other than field crops, which ultimately increase human resource directly or indirectly. Mushroom cultivation as a self-employment venture is now being promoted by various Government Department, State Agricultural Universities, and National Research Centre of Mushroom (NRCM) and NGOs. But, in this venture various risk are also involved which must be considered. This paper observes the major constraints faced by mushroom growers during various stages of mushroom cultivation such as awareness regarding procurement of raw material, lack of physical facilities like cold storage and infrastructure, financial constraints like difficulty in borrowing loans and lack of proper marketing channels etc.

Crop Diversification Strategy to Improve Economic Value in Brazilian Sugarcane Production

Core Ideas The authors evaluated economically different treatments for sugarcane renewal. The authors present the impact of the diversification on sugarcane production on venture risk. The authors used the real options theory with a polynomial approach to model the managerial flexibility in exchanging sugarcane with soybean. Crop diversity is beneficial to rural properties in terms of reducing business risks and increasing agricultural revenues. In sugarcane (Saccharum spp) farming, crop diversity using rotation or succession planting remains a paradigm for rural producers, largely because the productive cycle of sugarcane differs from that of annual crops, obliging farmers to grow it for between 4 and 6 yr to compensate for the high initial investment in planting. Sugarcane producers in Brazil only plant another crop at the end of the cycle to renew the plantation. The present study questions this paradigm by using the real options theory to capture the value of managerial flexibility in diversifying production to minimize risk and increase revenue by alternating between sugarcane and soybean (Glycine max) crops, considering a polynomial model that combines market and yield volatility. To that end, the research data were based on an experiment performed over 6 yr using different sugarcane succession systems on a rural property in the region of Jaboticabal, São Paulo, Brazil. Results suggest that succession planting of soybean/crotalaria/soybean/sugarcane exhibited the best agronomic and economic–financial performance and that diversifying crops using the portfolio theory increased the value of the project. Greater return on investment was obtained by replacing sugarcane with soybean, making it possible to opt for the crop change at the third cane cutting, a completely new scenario in Brazil, the largest sugarcane producer in the world.

Modelling the Impact of Entrepreneurial Venture Risk Taking on Solid Waste Collection Capacity in Abuja, Nigeria

This research, investigated the impact of entrepreneurial venture risk taking on solid waste collection capacity in Abuja, Nigeria. The study utilised a multi-methods approach consisting of direct field observations, key informant interviews and questionnaire survey for primary data collection. Data collected were analysed using the statistical program for social sciences, SPSS version 17.0 software. Results indicate that entrepreneurial activities can be used to optimise efficiencies in sustainable solid waste management. In particular, the study found that entrepreneurial venture risk taking has a positive correlation on solid waste collection capacity with a strong significance value of 0.001. It is recommended that government should formulate policies that encourage entrepreneurial venture risk taking in order to enhance sustainable solid waste collection capacity within the case study area.