SME’s and entrepreneurship
1 Course overview .......................................................................................................... 7
2 Introduction ................................................................................................................ 7
3 SMEs perspective ...................................................................................................... 12
4 Family businesses’ perspective .................................................................................. 25
5 Start-up’s perspective ............................................................................................... 39
6 Deep dive into Corporate Venturing Capital (CVC) ..................................................... 48
7 Kickstarting your CSC ................................................................................................ 64
8 Netwerk ondernemen – Guest session ....................................................................... 77
9 Van Marcke – Guest session ...................................................................................... 82
1
,Table of contents
1 Course overview .......................................................................................................... 7
2 Introduction ................................................................................................................ 7
2.1 Entrepreneurship............................................................................................................. 7
2.1.1 Definitions ..................................................................................................................................... 7
2.1.2 Types of entrepreneurship ............................................................................................................ 8
2.2 BMW case study .............................................................................................................. 9
2.2.1 Introduction to CSC (corporate venture capital) ......................................................................... 10
3 SMEs perspective ...................................................................................................... 12
3.1 Definition and importance of SMEs.................................................................................12
3.1.1 SME qualitative and quantitative definition ................................................................................ 12
3.1.2 Small versus Large firms .............................................................................................................. 13
3.2 Importance of SMEs........................................................................................................13
3.3 SME success and failure ..................................................................................................14
3.3.1 Vulnerable to failure .................................................................................................................... 14
3.3.2 Causes of failure among established SMEs ................................................................................. 14
3.4 SME main challenges ......................................................................................................15
3.4.1 SME research Belgium (2020)...................................................................................................... 15
3.4.2 SME research EU (2020-2021) ..................................................................................................... 15
3.4.3 SME research OECD (2020-2021) ................................................................................................ 15
3.4.4 EU small business act................................................................................................................... 16
3.4.5 Governance ................................................................................................................................. 17
3.4.6 Business financing ....................................................................................................................... 19
3.5 SME innovation ..............................................................................................................21
3.5.1 Schumpeter – creative destruction (1883 – 1950) ...................................................................... 21
3.5.2 Open innovation research ........................................................................................................... 22
3.5.3 Corporate entrepreneurship research ........................................................................................ 24
4 Family businesses’ perspective .................................................................................. 25
4.1 Introduction ...................................................................................................................25
4.2 Definition and importance of FBs....................................................................................25
4.2.1 Structural definitions ................................................................................................................... 26
4.2.2 Behavioral definitions .................................................................................................................. 27
4.2.3 System definitions ....................................................................................................................... 28
4.3 Family business importance ............................................................................................29
4.3.1 Economic importance .................................................................................................................. 29
4.4 Family business success and failure ................................................................................30
4.4.1 Uniqueness .................................................................................................................................. 30
4.4.2 Success ........................................................................................................................................ 30
4.4.3 Socio-emotional wealth (SEW) .................................................................................................... 32
4.4.4 Family business strengths and weaknesses................................................................................. 32
4.4.5 Family business vs non-family business performance ................................................................. 33
4.4.6 Family business heterogeneity .................................................................................................... 33
4.5 Family business main challenges.....................................................................................33
4.5.1 Key priorities................................................................................................................................ 33
4.5.2 Key success drivers ...................................................................................................................... 33
4.5.3 Family business succession.......................................................................................................... 34
2
, 4.5.4 Family business governance ........................................................................................................ 35
4.5.5 Family businesses and innovation ............................................................................................... 36
4.5.6 Family businesses and start-ups (collaboration) ......................................................................... 37
5 Start-up’s perspective ............................................................................................... 39
5.1 Definition .......................................................................................................................39
5.2 Importance .....................................................................................................................39
5.3 Who starts up a company ...............................................................................................40
5.3.1 Entrepreneurship myths .............................................................................................................. 40
5.3.2 Successful start-ups ..................................................................................................................... 41
5.3.3 Challenges of startups ................................................................................................................. 41
5.4 Financing of startups ......................................................................................................42
5.4.1 Private equity and venture capital .............................................................................................. 42
5.5 Cooperation of startups ..................................................................................................46
6 Deep dive into Corporate Venturing Capital (CVC) ..................................................... 48
6.1 Rise of corporate venturing ............................................................................................48
6.2 Main factors determining the waves...............................................................................48
6.2.1 A comparison across industries ................................................................................................... 50
6.2.2 A comparison across region ........................................................................................................ 50
6.3 Defining and modeling corporate venture ......................................................................50
6.3.1 CV models .................................................................................................................................... 51
6.3.2 Corporate venture differentiators ............................................................................................... 53
6.3.3 Corporate venture types ............................................................................................................. 53
6.3.4 Four bridges ................................................................................................................................. 53
6.4 Motives for corporate venturing .....................................................................................54
6.4.1 Why CV – corporates ................................................................................................................... 54
6.4.2 Why CV – Start-ups ...................................................................................................................... 54
6.5 Theoretical perspectives (6 theories) ..............................................................................55
6.5.1 Resource-based view ................................................................................................................... 55
6.5.2 Dynamic capabilities .................................................................................................................... 55
6.5.3 Open innovation .......................................................................................................................... 55
6.5.4 Ambidexterity .............................................................................................................................. 55
6.5.5 Real options theory ..................................................................................................................... 55
6.5.6 Institutional theory ...................................................................................................................... 56
6.5.7 Agency theory.............................................................................................................................. 56
6.6 Common theoretical perspectives ..................................................................................56
6.7 Gaps in theory and practice ............................................................................................56
6.7.1 Insights from research ................................................................................................................. 56
6.7.2 Family business – corporate venture research ............................................................................ 57
6.7.3 Gaps in practice ........................................................................................................................... 57
6.8 Empirical research ..........................................................................................................58
6.8.1 Most important motives.............................................................................................................. 58
6.8.2 Identified size effects................................................................................................................... 59
6.8.3 Identified size and family business effects .................................................................................. 59
6.8.4 Reasons to not set up a collaboration ......................................................................................... 60
6.8.5 Linking CSC types to outcomes .................................................................................................... 60
6.9 Case: Corporate venture in pharma industry...................................................................61
6.9.1 From closed to open pharma ...................................................................................................... 61
3
, 6.9.2 Why corporate venture ............................................................................................................... 62
7 Kickstarting your CSC ................................................................................................ 64
7.1 Network events ..............................................................................................................64
7.1.1 Motives ........................................................................................................................................ 64
7.1.2 Pros & Cons ................................................................................................................................. 64
7.1.3 Tips & Tricks................................................................................................................................. 65
7.1.4 Belgian examples ......................................................................................................................... 65
7.2 Co-organise or sponsor events ........................................................................................65
7.2.1 Motives ........................................................................................................................................ 65
7.2.2 Pros & Cons ................................................................................................................................. 65
7.2.3 Tips & Tricks................................................................................................................................. 65
7.2.4 Belgian examples ......................................................................................................................... 66
7.3 Scouting mission .............................................................................................................66
7.3.1 Motives ........................................................................................................................................ 66
7.3.2 Pros & Cons ................................................................................................................................. 66
7.3.3 Tips & Tricks................................................................................................................................. 66
7.3.4 Belgian Examples ......................................................................................................................... 66
7.4 Sharing resources ...........................................................................................................66
7.4.1 Motives ........................................................................................................................................ 66
7.4.2 Pros & Cons ................................................................................................................................. 66
7.4.3 Tips & Tricks................................................................................................................................. 67
7.4.4 Belgian Examples ......................................................................................................................... 67
7.5 Startup challenges & awards ..........................................................................................67
7.5.1 Motives ........................................................................................................................................ 67
7.5.2 Pros & Cons ................................................................................................................................. 67
7.5.3 Tips & Tricks................................................................................................................................. 68
7.5.4 Belgian Examples ......................................................................................................................... 68
7.6 Hackathons.....................................................................................................................68
7.6.1 Motives ........................................................................................................................................ 68
7.6.2 Pros & Cons ................................................................................................................................. 68
7.6.3 Tips & Tricks................................................................................................................................. 68
7.6.4 Belgian Examples ......................................................................................................................... 69
7.7 Mentoring & advisory .....................................................................................................69
7.7.1 Motives ........................................................................................................................................ 69
7.7.2 Pros & Cons ................................................................................................................................. 69
7.7.3 Tips & Tricks................................................................................................................................. 69
7.7.4 Belgian Examples ......................................................................................................................... 69
7.8 Venture clients ...............................................................................................................69
7.8.1 Motives ........................................................................................................................................ 69
7.8.2 Pros & Cons ................................................................................................................................. 70
7.8.3 Tips & Tricks................................................................................................................................. 70
7.8.4 Belgian Examples ......................................................................................................................... 70
7.9 Co-development projects................................................................................................70
7.9.1 Motives ........................................................................................................................................ 70
7.9.2 Pros & Cons ................................................................................................................................. 70
7.9.3 Tips & Tricks................................................................................................................................. 71
7.9.4 Belgian Examples ......................................................................................................................... 71
7.10 Strategic partnership...................................................................................................71
7.10.1 Motives ........................................................................................................................................ 71
7.10.2 Pros & Cons ................................................................................................................................. 71
4
1 Course overview .......................................................................................................... 7
2 Introduction ................................................................................................................ 7
3 SMEs perspective ...................................................................................................... 12
4 Family businesses’ perspective .................................................................................. 25
5 Start-up’s perspective ............................................................................................... 39
6 Deep dive into Corporate Venturing Capital (CVC) ..................................................... 48
7 Kickstarting your CSC ................................................................................................ 64
8 Netwerk ondernemen – Guest session ....................................................................... 77
9 Van Marcke – Guest session ...................................................................................... 82
1
,Table of contents
1 Course overview .......................................................................................................... 7
2 Introduction ................................................................................................................ 7
2.1 Entrepreneurship............................................................................................................. 7
2.1.1 Definitions ..................................................................................................................................... 7
2.1.2 Types of entrepreneurship ............................................................................................................ 8
2.2 BMW case study .............................................................................................................. 9
2.2.1 Introduction to CSC (corporate venture capital) ......................................................................... 10
3 SMEs perspective ...................................................................................................... 12
3.1 Definition and importance of SMEs.................................................................................12
3.1.1 SME qualitative and quantitative definition ................................................................................ 12
3.1.2 Small versus Large firms .............................................................................................................. 13
3.2 Importance of SMEs........................................................................................................13
3.3 SME success and failure ..................................................................................................14
3.3.1 Vulnerable to failure .................................................................................................................... 14
3.3.2 Causes of failure among established SMEs ................................................................................. 14
3.4 SME main challenges ......................................................................................................15
3.4.1 SME research Belgium (2020)...................................................................................................... 15
3.4.2 SME research EU (2020-2021) ..................................................................................................... 15
3.4.3 SME research OECD (2020-2021) ................................................................................................ 15
3.4.4 EU small business act................................................................................................................... 16
3.4.5 Governance ................................................................................................................................. 17
3.4.6 Business financing ....................................................................................................................... 19
3.5 SME innovation ..............................................................................................................21
3.5.1 Schumpeter – creative destruction (1883 – 1950) ...................................................................... 21
3.5.2 Open innovation research ........................................................................................................... 22
3.5.3 Corporate entrepreneurship research ........................................................................................ 24
4 Family businesses’ perspective .................................................................................. 25
4.1 Introduction ...................................................................................................................25
4.2 Definition and importance of FBs....................................................................................25
4.2.1 Structural definitions ................................................................................................................... 26
4.2.2 Behavioral definitions .................................................................................................................. 27
4.2.3 System definitions ....................................................................................................................... 28
4.3 Family business importance ............................................................................................29
4.3.1 Economic importance .................................................................................................................. 29
4.4 Family business success and failure ................................................................................30
4.4.1 Uniqueness .................................................................................................................................. 30
4.4.2 Success ........................................................................................................................................ 30
4.4.3 Socio-emotional wealth (SEW) .................................................................................................... 32
4.4.4 Family business strengths and weaknesses................................................................................. 32
4.4.5 Family business vs non-family business performance ................................................................. 33
4.4.6 Family business heterogeneity .................................................................................................... 33
4.5 Family business main challenges.....................................................................................33
4.5.1 Key priorities................................................................................................................................ 33
4.5.2 Key success drivers ...................................................................................................................... 33
4.5.3 Family business succession.......................................................................................................... 34
2
, 4.5.4 Family business governance ........................................................................................................ 35
4.5.5 Family businesses and innovation ............................................................................................... 36
4.5.6 Family businesses and start-ups (collaboration) ......................................................................... 37
5 Start-up’s perspective ............................................................................................... 39
5.1 Definition .......................................................................................................................39
5.2 Importance .....................................................................................................................39
5.3 Who starts up a company ...............................................................................................40
5.3.1 Entrepreneurship myths .............................................................................................................. 40
5.3.2 Successful start-ups ..................................................................................................................... 41
5.3.3 Challenges of startups ................................................................................................................. 41
5.4 Financing of startups ......................................................................................................42
5.4.1 Private equity and venture capital .............................................................................................. 42
5.5 Cooperation of startups ..................................................................................................46
6 Deep dive into Corporate Venturing Capital (CVC) ..................................................... 48
6.1 Rise of corporate venturing ............................................................................................48
6.2 Main factors determining the waves...............................................................................48
6.2.1 A comparison across industries ................................................................................................... 50
6.2.2 A comparison across region ........................................................................................................ 50
6.3 Defining and modeling corporate venture ......................................................................50
6.3.1 CV models .................................................................................................................................... 51
6.3.2 Corporate venture differentiators ............................................................................................... 53
6.3.3 Corporate venture types ............................................................................................................. 53
6.3.4 Four bridges ................................................................................................................................. 53
6.4 Motives for corporate venturing .....................................................................................54
6.4.1 Why CV – corporates ................................................................................................................... 54
6.4.2 Why CV – Start-ups ...................................................................................................................... 54
6.5 Theoretical perspectives (6 theories) ..............................................................................55
6.5.1 Resource-based view ................................................................................................................... 55
6.5.2 Dynamic capabilities .................................................................................................................... 55
6.5.3 Open innovation .......................................................................................................................... 55
6.5.4 Ambidexterity .............................................................................................................................. 55
6.5.5 Real options theory ..................................................................................................................... 55
6.5.6 Institutional theory ...................................................................................................................... 56
6.5.7 Agency theory.............................................................................................................................. 56
6.6 Common theoretical perspectives ..................................................................................56
6.7 Gaps in theory and practice ............................................................................................56
6.7.1 Insights from research ................................................................................................................. 56
6.7.2 Family business – corporate venture research ............................................................................ 57
6.7.3 Gaps in practice ........................................................................................................................... 57
6.8 Empirical research ..........................................................................................................58
6.8.1 Most important motives.............................................................................................................. 58
6.8.2 Identified size effects................................................................................................................... 59
6.8.3 Identified size and family business effects .................................................................................. 59
6.8.4 Reasons to not set up a collaboration ......................................................................................... 60
6.8.5 Linking CSC types to outcomes .................................................................................................... 60
6.9 Case: Corporate venture in pharma industry...................................................................61
6.9.1 From closed to open pharma ...................................................................................................... 61
3
, 6.9.2 Why corporate venture ............................................................................................................... 62
7 Kickstarting your CSC ................................................................................................ 64
7.1 Network events ..............................................................................................................64
7.1.1 Motives ........................................................................................................................................ 64
7.1.2 Pros & Cons ................................................................................................................................. 64
7.1.3 Tips & Tricks................................................................................................................................. 65
7.1.4 Belgian examples ......................................................................................................................... 65
7.2 Co-organise or sponsor events ........................................................................................65
7.2.1 Motives ........................................................................................................................................ 65
7.2.2 Pros & Cons ................................................................................................................................. 65
7.2.3 Tips & Tricks................................................................................................................................. 65
7.2.4 Belgian examples ......................................................................................................................... 66
7.3 Scouting mission .............................................................................................................66
7.3.1 Motives ........................................................................................................................................ 66
7.3.2 Pros & Cons ................................................................................................................................. 66
7.3.3 Tips & Tricks................................................................................................................................. 66
7.3.4 Belgian Examples ......................................................................................................................... 66
7.4 Sharing resources ...........................................................................................................66
7.4.1 Motives ........................................................................................................................................ 66
7.4.2 Pros & Cons ................................................................................................................................. 66
7.4.3 Tips & Tricks................................................................................................................................. 67
7.4.4 Belgian Examples ......................................................................................................................... 67
7.5 Startup challenges & awards ..........................................................................................67
7.5.1 Motives ........................................................................................................................................ 67
7.5.2 Pros & Cons ................................................................................................................................. 67
7.5.3 Tips & Tricks................................................................................................................................. 68
7.5.4 Belgian Examples ......................................................................................................................... 68
7.6 Hackathons.....................................................................................................................68
7.6.1 Motives ........................................................................................................................................ 68
7.6.2 Pros & Cons ................................................................................................................................. 68
7.6.3 Tips & Tricks................................................................................................................................. 68
7.6.4 Belgian Examples ......................................................................................................................... 69
7.7 Mentoring & advisory .....................................................................................................69
7.7.1 Motives ........................................................................................................................................ 69
7.7.2 Pros & Cons ................................................................................................................................. 69
7.7.3 Tips & Tricks................................................................................................................................. 69
7.7.4 Belgian Examples ......................................................................................................................... 69
7.8 Venture clients ...............................................................................................................69
7.8.1 Motives ........................................................................................................................................ 69
7.8.2 Pros & Cons ................................................................................................................................. 70
7.8.3 Tips & Tricks................................................................................................................................. 70
7.8.4 Belgian Examples ......................................................................................................................... 70
7.9 Co-development projects................................................................................................70
7.9.1 Motives ........................................................................................................................................ 70
7.9.2 Pros & Cons ................................................................................................................................. 70
7.9.3 Tips & Tricks................................................................................................................................. 71
7.9.4 Belgian Examples ......................................................................................................................... 71
7.10 Strategic partnership...................................................................................................71
7.10.1 Motives ........................................................................................................................................ 71
7.10.2 Pros & Cons ................................................................................................................................. 71
4
