Third, unlike previous literature, this paper considers family control and its control degree, and through comparison and analysis with non-family enterprise venture capital effects on family enterprises and testing of how family control in venture capital affects the role of family enterprises, explores and explains the role of family enterprise venture capital with an emphasis on equity financing. Therefore, the influence of external equity financing from venture capital on enterprise growth will be constrained by the organizational control characteristics of the enterprise itself. Organizational structure represents a type of internal environment that can promote and hinder the management process. Second, organizational structure is very important for enterprises.
As the resources and organizational structure of family enterprises are special, it is particularly important to compare the behaviours of family enterprises and non-family enterprises. This article’s possible contributions are as follows: first, studies of venture capital in family enterprise research are still in their infancy, and the present theory based on the assumption of homogeneity does not sufficiently cover family enterprise features in research. Examining the effect of venture capital financing in family enterprises from the perspective of family enterprise heterogeneity is helpful to explore and explain the influence of venture capital on the growth of family enterprises. In particular, the influence of the degree of family control on the growth performance of venture capital involvement in family enterprises also highlights the characteristics of family enterprises that distinguish them from non-family enterprises. Thus, in China’s immature capital market, does venture capital have an impact on the growth and transformation of family enterprises? And is this impact different under family control? What causes any differences? How people should coordinate the interest relationship between family enterprises and venture capital firms to achieve the goal of win-win cooperation is a question worth exploring. In addition, venture capital firms are more focused on short-term benefits and financial returns, while family enterprises are more focused on longevity and social emotional wealth. Therefore, family enterprises are affected by the degree of family control in the process of venture capital financing, which makes the problem of venture capital financing for family enterprises different from ordinary enterprises.
Moreover, as an organizational form with dual characteristics of enterprise and family, family enterprises have unique control characteristics, which are highlighted by the degree of family control in different family enterprises. However, at present, there are few research results on the external equity financing of venture capital with family enterprises, a topic that needs to be tackled through theoretical research. Family enterprises will embrace venture capital due to financing constraints and growth transformation, and venture capital investment in family enterprises has become a remarkable phenomenon.
Venture capital can not only ease the financing constraints of enterprises but also provide other non-capital appreciation services such as management support so as to help enterprises grow. Among them, venture capital is a good equity financing method for family enterprises. According to statistics from PwC’s 2018 Global Family Enterprises Research Report, 93% of family enterprises will achieve transformation and growth through external financing in the future. With the increase in the development of family enterprises, more and more of them are seeking external financing. In the context of China’s economic transformation, family-controlled enterprises play an important role.
0 kommentar(er)
