agreements, 60–61
buy-sell, 72–73, 86–87, 90–93
drafting, 76–77
employment, 61–62, 75
innovations, 62–64
new corporation, 77–80
noncompetition, 65–66
nonsolicitation, 65–66
option, 66–67
shareholders, 75–77, 82–85
voting/pooling, 81–83
ambiguity, tolerance for, 7–8
arbitration clauses, 85–86
attachment, dimension, 100
autocracy model, 104
autonomy and responsibility, 46
Bandura, A., 9
board composition, 135–136
bureaucracy model, 103
business
existing, 48–50
launching new, 44–46 (see also entrepreneur, role of)
ownership (see business
ownership)
business ownership
autonomy and responsibility, 46
community involvement, 47
earnings potential, 46
financial risk, 48
job security, 47
resources, 48
skill development, 47
supervisory and mentoring opportunities, 47
time commitment, 48
buy–sell agreement, 86–87
events, 92–93
forms of, 90–91
restrict, 72–73
“call” right, 90
career experience and functional background, 130–133
Cauthorn, R. C., 22, 37
commitment model, 103
committing resources, 29–30
community involvement, 47
compensation and reward policies, 33–34
control of resources, 30–32
co-sale agreements restrict, 73
crosspurchase agreement, 91–92
dilemmas, 50–56
disclosure, 59–60
drive, 11
duty, current and former employers, 58–59
earnings potential, 46
egoistic passion, 11–12
election of directors, 83–84
employment agreement, 61–62, 75
employment relations model
autocracy, 104
bureaucracy, 103
commitment, 103
engineering, 102
on firm evolution, 107–109
selection of, 105–107
star, 102–103
engineering model, 102
entrepreneur, role of, 17–18
committing resources, 29–30
compensation and reward policies, 33–34
control of resources, 30–32
management structure, 32–33
in new organizations, 19–21
philosophies of management, 21–23
strategic orientation, 24–27
strength and speed of commitment, 27–29
entrepreneurship, 1–2
drive, 11
egoistic passion, 11–12
independence, 10–11
locus of control, 8–9
motivational traits and effect, 2–4
need for achievement, 4–5
research and suggestions, 12–15
risk taking, 5–7
self-efficacy, 9–10
tolerance for ambiguity, 7–8
equity financing, demand for, 137–138
ethical and professional considerations, 88–89
existing business, 48–50
financial management skills, 41
financial risk, 48
Gartner, W. B., 1, 12, 14–15, 17–18, 19, 21
human resource skills, 41
hybrid agreement, 92
independence, 10–11
initial public offering (IPO), 116, 123–129
age, 133–134
board composition, 135–136
board member, 140–141
career experience and functional background, 130–133
equity financing, demand for, 137–138
leadership at, 129–130
outside blockholder ownership, 136–137
size of founding team, 134–135
top management team, 136
venture capital participation, 138–140
innovations agreement, 62–64
Isenberg, D., 43–44
Jain, B., 124, 128–130, 132–139
job security, 47
Joseph A., 35–36
Kirzner, I.M., 37
launching new business, 44–46. See also entrepreneur, role of
locus of control, 8–9
management
of new business, 73–75
philosophies of, 21–23
structure, 32–33
managerial intensity, 112
mandatory obligation, 90
McClelland, D., 4–5
Miller, B., 116
Mintzberg, H., 19
motivational traits and effect, 2–4
need for achievement (nAch), 4–5
negotiation considerations, 87–88
new corporation agreement, 77–80
new organizations, 19–21
noncompetition agreement, 65–66
nondisclosure, 62–64
nonsolicitation agreement, 65–66
opportunistic behavior, 24–25
option agreement, 66–67
organizational and management skills, 41–42
organizational culture, 95–97
blueprint, 99–101
cultural elements, 97–98
design, 110–115
employment relations (see employment relations model)
networks, 115–118
and professional managers, 118–122
Stanford Project on Emerging Companies, 99
organizational structure, 100–101
outside blockholder ownership, 136–137
ownership interests, 70–72
personality traits, 35–38
philosophies of management, 21–23
pooling agreement. See voting
professional managers, 118–122
promoter-type orientation, 33–34
purchaser, 91–92
“put” right, 90
redemption agreement, 91
relationships, 69–70
research and suggestions, 12–15
resolution procedures, 85–86
resources, 30–32, 48
restrictions, 72–73
return of property, 60
right of first refusal restrict, 72
risk taking, 5–7
sales and marketing skills, 39–40
Sarasvathy, S., 25–26
scale-up entrepreneur, 43–44
Schein, E., 95–98, 118–122
Schumpeter, J. A., 35–37
Scott, W., 112
self-efficacy, 9–10
Shane, S., 12, 14
Shapero, A., 37
shareholders agreement, 75–77, 82–83
and election of directors, 83–84
shareholders voting arrangement, 80–81
skill development, 47
skills inventory, 38–39
financial management, 41
human resource, 41
organizational and management, 41–42
sales and marketing, 39–40
stress management, 42–44
Sokol, L., 37
Stanford Project on Emerging Companies (SPEC), 99
star model, 102–103
stock purchase, 66–67
strategic orientation, 24–27
strength and speed of commitment, 27–29
stress management skills, 42–44
supermajority shareholder quorum, 84–85
supervisory and mentoring opportunities, 47
Tabak, F., 124, 128–130,
132–139
The Theory of Economic Development (Joseph), 35–36
time commitment, 48
tolerance for ambiguity, 7–8
top management team (TMT), 136
transfer restrictions, 72–73
trustee-type orientation, 34
Van de Ven, A. H., 18
venture capital participation,
138–140
voluntary lifetime transfers, 89–90
voting
arrangement, 74, 80–83
requirement, 84–85
Wall Street Journal, 39
Wasserman, N., 50–56, 123, 125, 127–129, 140–141
Weber, M., 110