The Impact Of Post Involvement Of Business Angels On The Commercial Performance Of Startup Businesses (2014)

Business angels play an essential role in the economic system of United Kingdom as they create useful investment techniques in businesses through their resources and skills. In return they are able to acquire possession of the companies through buying stocks or shares. The banks in the country are quite hesitant to support little and start-up companies hence it is difficult to acquire financing in form of loans for such tasks. The banks have diverted their credit openness to more established companies which they believe have low risk due to their capability to produce income and pay back the debt.

On the other hand, business angels complete the gap that the banks create hence offer capital and skills needed to start investments. Their demand for possession of companies depicts the willingness of the business angels to add value and propel further economic growth. Business angel partnerships have emerged as a new phenomenon for enhancing the growth and performance of startup businesses. After the 2008 financial crisis, the European markets were greatly suffering financially and during this time, business angels emerged as a great resource in terms of funding, innovation and employment.

Through the help of business angels, the European markets started producing innovative products for consumers all around the world. Moreover, business angels also greatly helped startup businesses by funding their startup capital requirements and this led to the successful growth and development of various startup businesses in the European markets. These startup businesses became a source of employment for various unemployed people who were affected by the financial crisis. In short, the concept of business angels became a source of overall revival of the European economy.

The European commission established the European Business Angels Network (EBAN) which started putting extensive efforts towards financing and helping startup companies and SMEs. EBAN started the European Business Angels Week in which more than thirty four countries started participating on a weekly basis in order to enhance the performance of their businesses and to benefit from better innovative ideas and job creation opportunities.

The main problem is that for most small companies the commercial performance has not been stable in terms of productivity, market share, human capital, and profitability. Startup businesses may have insufficient social or financial capital as well as weak marketing and management strategies.

This is also occasioned by rival companies’ monopolies the markets at the detriment of the startup businesses. Inadequate profitability derives from suppressed market share because there lacks enough sales and revenues. The problem with startup businesses commercial performance could be due to the lack of post involvement of business angels. The aims of the study are:

• To find out if lack of post involvement of business angels is the cause of poor performance of startup businesses in UK
• To make recommendations about what SMEs companies must do to address the problem

• 22,000 words – 98 pages in length
• Excellent use of literature
• Good analysis of subject area
• Well written throughout
• Includes questionnaire
• Ideal for MBA students

1: Introduction
Background of the Study
Research Problem
Aims of the Research
Research Questions
Research Objectives
Hypotheses
Scope of the Research
Importance of the Research
Research Methodology
Structure of the Dissertation

2: Literature Review
Business Angels and SMEs
Business angels Benefits to Investee Companies
Helping to Overcome Funding Difficulties
Involvement
Provision of Contacts
Facilitation of Further Funding
Evaluation of Past Methodologies on Post-Involvement of Business Angels
Value Added Contributions by Business Angels
Supervision and Monitoring Role
Resource Acquisition Role
Mentoring Role
Business Angels as Facilitators for Further Finance
Conceptual Framework

3: Methodology
Overview of the Research
Research objectives
Hypotheses
Research Approach
Research Philosophy
Research Design
Research Strategies
Research Time Horizon
Sample Population
Research Instrument and Data Collection Method
The Quantitative and Quantitative Aspects
Data Analysis and Interpretation Method
Limitations of the Study
Validity and Reliability
Ethical Considerations

4: Data Results, Analysis and Discussion
Quantitative Data
Questionnaire Analysis
T-Tests
Correlations
Qualitative Data: Interview Analysis
Discussion: Linked with Research Objectives
Business Angels Post Involvement and Financial Stability
Business Angels Post-Investment Involvement and Investment Sustainability
Business Angels Enhance Business Partnerships
Business Angels Involvement and Successful Management and Leadership

5: Conclusion and Recommendations
Overview of the Study
Major Findings of the Study
Recommendations
Reflection
Future Research

References

Appendix
Questionnaire