© 2006 Jason Olim |
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SelectingEntrepreneursVenture capitalists, business development centers and others have a desire to identify who will be a successful entrepreneur. Their success depends on their ability to select who will be successful from among a pool of people who present themselves as entrepreneurs. Everyone has their own approach to entrepreneurial selection. The issue is raised at different stages in the entrepreneurial lifecycle, from pre-emergence (who in this group should receive counseling about their business idea, a la Wharton's VIP program) to later-stage venture financing of established businesses with existing management teams. MacMillan 1985 talks about what VC look for in a business. The aspects that relate to the entrepreneur him/herself are: Other literature relating to selection? We can use the job analysis, competency model and individual differences to select. Review basic principles of selection?. Emergence-related selection. Angel/seed-stage selection. Series A selection. Mezzanine selection. Late lifecycle selection (topping-out issues). Some issues on VC After 14 years, VC become poorer decision makers. They begin to use heuristics and expend too little cognitive effort in decision-making. Shepherd 2003 VCs tend to be overconfident. Zacharakis Shepherd 2001? A brief overview of assessment methodologies is provided by Garman Phillips 2006?, covering Human Capital (Geoffrey Smart), Psychological (Wonderlic and Miner). Baum Silverman 2004 evaluate whether or not VC focus more on picking firms or developing them. Smart 1999 provides a crummy study based on a questionnaire of how VC evaluate entrepreneurs. Zacharakis Meyer 2000 Discusses the use of actuarial models in decision-making as a method for improving investment decisions. |