Entrepreneurial Finance in Emerging Markets: Exploring Tools, Techniques, and Innovative Technologies

Preface
Book Objectives and Features
Book Structure
Acknowledgments
Contents
Notes on Contributors
List of Figures
List of Tables
Part I: Institutional and Economic Development in Emerging Markets
Chapter 1: Emerging Markets and Their Role in a Global Economy
Introduction
Definition of Emerging Markets
Geography of Emerging Markets
Emerging Markets’ Economic Potential
Macroeconomic Performance of Emerging Markets
Emerging Markets and Macroeconomic Stability
Potential Risk Factors
References
Chapter 2: Promise and Peril in the Age of Turbulence in Emerging Markets: Implications for Private Equity Investors
Introduction
The Promise of the Emerging Markets
The Perfect Storm
De-Globalization: The Great Unwinding
De-Industrialization: No More “Flying Geese”
De-Population: The Great Migration
Viewing the World Through a More Discerning Lens
Considerable Upside in the Future
Conclusion
Chapter 3: Economic Growth, Institutions, and Corruption in Emerging Economies
Introduction
Economic Development
Institutions and Institutional Development
Current Situation: Deglobalization?
Conclusion
References
Part II: Institutional Development and Entrepreneurship in Emerging Markets
Chapter 4: China’s Institutional Environment for Entrepreneurship
Introduction
The Development of the Institutional Environment in China and Its Relevance for Business Start-Ups
Formal and Informal Institutions: Challenges Entrepreneurs Are Facing in the Light of China’s Institutional Environment
Entrepreneurs’ Impact on and Interrelation with the Institutional Framework: Top-Down and Bottom-Up Effects
Conclusions
References
Chapter 5: China, an Emergent Innovator? A Competence Misplaced, Capability Regained
Appetite to Succeed
Catch-Up Strategies
Government Support
Walled Garden
Absorptive Capacity
Concluding Observations
References
Chapter 6: How the “Triple Helix” Can Influence the General Climate for Entrepreneurs in Brazil
Introduction
The Triple Helix Model: A New Way for Promoting Knowledge and Innovation
The Brazilian Context of University-Government-Industry Relations
Two Examples of How the Triple Helix Could Work in Brazil
A High-Technology Ecosystem Building from the Blank Page: The HT MICRON Case
A Low-Technology Cooperation Program for Small and Medium Companies: The “Programa de Cooperação” (Program of Cooperation Networks or PCN)
Conclusion
References
Chapter 7: Entrepreneurial Family Businesses in Poland: From an Emerging to a Developed Market
Introduction
The Essence of Family Entrepreneurship
Poland from an Emerging to a Developed Market
Characteristics of Polish Family Enterprises
Conclusions
References
Chapter 8: Access to Capital: Women Entrepreneurs in Emerging Markets
Introduction
Women’s Role in Economic Development and Growth
Barriers to Access to Capital for Women Entrepreneurs
Improving Women’s Access to Capital
Characteristics of Effective Access to Capital Programs
Teaching Entrepreneurs and Small Business Owners
Andragogy versus Pedagogy
Designing an Effective Access to Capital Program for Emerging Markets
The Market-Centric Approach
Provision of Relevant Skills5
Accommodation of Entrepreneur-Specific Characteristics and Constraints
Summary and Conclusion
References
Chapter 9: How Entrepreneurial Finance Is Transformed into Political Power: The Importance of “Friends with Benefits”
Introduction
Literature Review
Methodology
The Case Studies
Piñera (Chile)
Ramaphosa (South Africa)
Shinawatra (Thailand)
Hariri (Lebanon)
Discussion
Conclusion
References
Part III: Entrepreneurial Finance in the BRIC Countries
Chapter 10: An Overview of the Private Equity and Venture Capital Industry in Brazil
Development of the Brazilian PE and VC Industry
Investment Theses in Brazil
Performance and Exits of PE and VC Investments in Brazil
Limited Partners and Fundraising Activity of Brazilian Funds
Challenges and Experience of Brazilian GPs
Concluding Remarks
References
Chapter 11: Financing Architecture and Current Trends in the Development of Russian Small and Medium Enterprises
Introduction
Structural Transformation of the SME Sector and its Effectiveness
Reformatting of the SME Sector and Business Barriers to its Financing
Contraction of the SME Sector
Transformation of the Institutional Matrix of the SME Sector
Consolidation of the Microfinance Marketplace
Increased Lending to SMEs by MFIs
General Stagnant Access to Finance by SMEs
Expansion of Regional Initiatives for SME Development and Financing
Conclusion
References
Chapter 12: The Evolution of Private Equity in India
Rapid Rise, Fall, and Slow Recovery
Underdeveloped Financial Markets and Growth PE
Transition from Engines of Capital Allocation to Drivers of Firm Efficiency
Different Segments Within the Current Industry: Examples of Indian PE
Vini Cosmetics: Growth Capital
Druva Software: Venture Capital
Shriram Transport Finance: Private Placement in a Public Company
East West Gas Pipeline: Infrastructure Annuity
National Stock Exchange: Secondary Private Equity
GVK Airport Holdings Limited: Structured Credit
Atria Convergence Technologies: Control Transaction
The Future of Indian PE
References
Chapter 13: Finding New Frontiers: The Challenges of Early-Stage Indian Entrepreneurs in Accessing Finance in an Evolving Startup Ecosystem
Introduction
The Startup Boom: How It All Started?
The “Gold Rush”, the Boom, and the Period Thereafter
The Challenge of Getting Funds, but for Whom?
Why First-Time Entrepreneurs Struggled More in Accessing Finance?
The “Gold Rush” and Entrepreneurial Risk-Taking Behavior
Enabling Ecosystem to Give New Entrepreneurs a “Leg Up”
Conclusion
Chapter 14: Profiles of Chinese Business Angels
Introduction
Business Angel Investing in Institutional Voids
Angel Investing in China
Research Methods
Findings
BA Profile
BA Investing Strategy
Conclusion
References
Chapter 15: The Development of Venture Capital in China
The Development of Venture Capital in China
Fundraising and Investments
Exits in China
The Management of the Investee Firm by Venture Capital
Polices and Regulations on Venture Capital in China
The Underdevelopment of Limited Partnership
The Policies Regarding the Stock Market in China
“Regulating the Asset Management of Financial Institutions”
The Challenges of Foreign Venture Capital in China
Current Issues in China’s Venture Capital
Conclusion
References
Part IV: Entrepreneurial Finance in Selected Regions and Countries in Emerging Markets
Chapter 16: Propped up by the Government: The Recent Evolution of the Early-Stage Equity Finance Market in Hungary
The Development of Institutional and Informal Venture Capital Industry Investing in Start-ups
Development of Institutions Supporting Start-ups
Summary
References
Chapter 17: Private Equity in Central and Eastern Europe: The Early Years
Introduction
Private Equity
Setting Up a Fund in an Emerging Market
Operations
Investors and Investees
Deal Types in Emerging Markets: Challenges in Privatization Deals
Post Investment
The PE Ecosystem
Conclusion
Chapter 18: Do Bank-Firm Relationships Affect the Phenomenon of Zero-Leverage SMES?
Introduction
Literature Review and Hypotheses
Empirical Strategy
Data
Methodology
Results
Conclusions
References
Chapter 19: MENA FinTech: Exponential Growth from a Low Base
FinTech: A Game-Changer for MENA
Sandboxes: The Solution to FinTech Regulatory Concerns
FinTech in Islamic Finance, Creative Disruption
UAE: Leading the MENA FinTech Scene
Jordan: A Vibrant Startup Ecosystem
Bahrain: A Blueprint for the Region
Kuwait: Joining MENA’s FinTech Ring
Conclusion
Chapter 20: Exploring Open Banking and Banking-as-a-Platform: Opportunities and Risks for Emerging Markets
Introduction
Key Enabling Technologies and Constructs
Dissecting the Platform-Based Bank
Open Banking and Banking-as-a-Platform in Emerging Markets: Benefits and Challenges
Conclusion
References
Chapter 21: FinTech Revolution in the Gulf Countries and MENA Region
Drivers of FinTech in the MENA Region
FinTech Verticals
The Gulf Cooperation Council Landscape
Blockchain in the GCC
FinTech in the MENA—Challenges
Conclusion
References
Chapter 22: Entrepreneurship and Entrepreneurial Finance in Ghana
The Evolution of Entrepreneurship in Ghana
The Composition of the Informal and Private Sector in Ghana
Small Firms in Ghana
Sources of SME Financing at the Start-Up and Post-Start-up Stages
Bootstrapping
Bank Finance
Government Schemes and Programmes
Small Enterprises and Bank Credit: Key Challenges
Cost of Credit
Collateral Requirements
Loan Guarantee
Terms of Repayment of the Loan
Summary
References
Chapter 23: Government, Bank, and Private Capital Financing of Entrepreneurial Firms in Nigeria
Introduction
Government and Entrepreneurial Finance
Bank Financing of Entrepreneurial Firms
Private Debt Financing
Conclusion
References
Part V: Conclusions
Chapter 24: Entrepreneurial Finance in Emerging Markets: Conclusions
Entrepreneurial Finance in Emerging Markets and the Shaping of the Entrepreneurial Ecosystem
Entrepreneurial Finance in Emerging Markets and Public Intervention
The Maturation of Private Equity in Emerging Markets
Index