Isaac’s Storm by Erik Larson Essay

Isaac’s Storm is a book written by Erik Larson that describes a hurricane coming toward Galveston figuratively and literaly with his use of diction,figurative language, sentence structure, and organization of the piece. Larson starts out by describing Africa as â€Å"awakening,rose, and warmed (paragraph 1)† to bring the reader in to the chapter with the calm and tranquil presence of Africa. He continues to build on this with a shift â€Å"heat scalded the air(paragraph 2)† and â€Å"winds filled the sky with dust (paragraph 2)† to intice the reader with the sudden change in scenery. Africa was calm, tranquil but now something is forming, building up which creates suspense for the reader; capturing their interest. Paragraph three continues with the weather of not only Africa but in the U.S. with the â€Å"sea was hot (paragraph 3)† and â€Å"land was hot (paragraph3) to change the focus to the on the U.S. He does this so the reader can see how this brewing storm in Africa is effecting the U.S. Larson uses words like â€Å"wool, black, superheated (paragraph 3)† to further describe the intense heat U.S is suffering from which creates imagery. He than pulls back to Africa in paragraphs five and six with â€Å"the winds are arced (paragraph 5)† and â€Å"air filled with snow flakes and shard ice (paragraph 6)† to show the storm is only getting worse ,rising and getting stronger. Larson again move back to the U.S saying â€Å"children saw clouds†¦clouds bloomed before their eyes (paragraph 6)†to show the obliviousness the people of U.S. are about this coming storm toward them from Africa. Larson furthers his suspense with the weather in the U.S and Africa not only with his diction and figurative language but with his sentence structure. He uses short, choppy sentences to add imagery to his writing such as the â€Å"trains were hot (paragraph 2)† and â€Å"passengers roasted (paragraph 2).† Larson does this to emphasis the inescapable heat weather that is simply written but is very clear to the meaning. He uses these short sentences in the right way that gives meaning to the writing so the reader may imagine this and connect. Larson also uses parallelism to emphasize the weather with â€Å"colder and colder (paragraph 6)† and â€Å"higher and higher (paragraph 6)† he does this again for suspense to what is coming. Erik Larson describes a hurricane coming toward Galveston figuratively and literally with his use of diction, figurative language, sentence structure, and organization of the piece. To show by one naà ¯ve nature can be their very downfall in the end.

Darryl Hunt Death Penalty

My view upon death penalty before watching the video about Darryl hunt’s case, was strongly against it. I truly believe that we have no say in who is to take someone’s life. Who are we to decide who lives or dies? There is no standard that we can place on someone’s life, to determine their existence in this world. Life is a precious gift, no matter how cruel the crime may be that the person being accused of committing the crime. I strongly believe that incarceration for the reminder of their life is in my view, the most extreme decision as a society to make in determining an individuals future. After reviewing the Darryl Hunt Case, I strongly believe that the justice system went wrong when it came to Darryl Hunt’s Case. From the start, the justice system faltered in backing up the meaning of â€Å"all men are created equal. † Darryl Hunt was tried as a â€Å"Black Man† with an all white jury. He was not looked upon as a man that stood before the jury who was being accused of a crime that he pleads his innocence. He was judged as a black man that must be a criminal because of his ethnicity and his innocence that he pleaded was nothing but a lie to their ears. He was judged solely on the color of his skin, racism took over the minds of they juries an the charges they found him guilty on. It was honestly all down hill from the start. Multiple denies on appeals that Darryl filed, even after DNA diagnostics had proven that Darryl Hunt did not committee the crime that he was being held accountable for, The justice system turned away an failed to even allow the thought that this man is innocent and should be free even cross their mind. After the Man finally was caught who confessed to the crime that Darryl hunt was being accused of, Darryl was released to freedom, hat should have been given back to him from the beginning of the racial, judgmental, ignorant minded individuals who took part in taking away 20 years of this innocent mans life. I feel the death penalty should be abolished. As a Society, we are constantly changing, and re-defining the right an wrongs that we hold ourselves too. Who are we to take a life from someone, no matter the cr ime. Believing that playing â€Å"God† can be justified by society, is just as ignorant as having hope in the justice system will be perfect one day.

A Case Study About Healthcare Leadership

A Case Study About Healthcare Leadership Effective leadership is essential in health care organisations as in other organisations. It is necessary for driving innovation, effective patient care, patient safety, improving working within clinical teams, sorting out issues within emergency context and other aspects necessary for effective and efficient running of healthcare organisations. Transformational leadership has often been prescribed as the ‘gold standard’ of healthcare leadership(Gopee and Galloway 2009).This essay sets out to: briefly discuss the concept of leadership; highlight why leadership is important in healthcare; make a distinction between the closely-related concepts of leadership and management; briefly highlight how power relates to leadership; describe some leadership approaches applicable within the context of healthcare organisations; describe leadership styles visible in healthcare; present a case study set in a teaching hospital practice setting in Africa ; critically assess the leadersh ip approaches operating within the setting and its effect on organisational performance ;and make recommendations on improving leadership practice within the specified setting. What is leadership? Leadership can be defined as â€Å"the ability of an individual to influence a group of people to achieve a goal(Bryman 1992).It is also noted that ‘leadership can have four possible meanings, namely: the activity of leading; the body of people who lead a group; the status of the leader; and the ability to lead'(Gopee and Galloway 2009). Kouzes and Posner (2007) suggest some characteristics of an effective leader namely to: be more effective in meeting job-related demands; be more successful in representing their units in upper management; create higher performing teams; foster renewed loyalty and commitment; increase motivational levels and willingness to work hard; and possess high degree of personal integrity. Why leadership in healthcare? Effective leadership and management has been found to contribute to efficiency of health care services, performance (McColl-Kennedy and Anderson 2002) and satisfaction of staff employed within them.(Bradley and Alimo-Metcalfe 2008) researched the causal relationship between leadership behaviours and the performance and productivity of staff and found that ‘engaging leadership’ improved employee engagement and performance. (Morrison, Jones et al. 1997) studied the relationship between leadership style, empowerment, and job satisfaction on nursing staff at a regional medical centre. They used Bass’s Multifactor Leadership Questionnaire to measure leadership style, items from Spreitzer’s Psychological Empowerment instrument to measure empowerment, and the Warr, Cook, and Wall’s job satisfaction questionnaire to measure job satisfaction. The authors found that both transformational and transactional leadership were positively associated with job satisfaction. Some other researchers reported t hat good leadership skills impacted on patient safety and quality of care (Corrigan, Lickey et al. 2000; Firth-Cozens and Mowbray 2001; Mohr, Abelson et al. 2002).Furthermore, leadership skills are essential in the world of public health policy and leadership is one of the core competencies required of public health trainees(Faculty of Public Health 2010). Leadership versus management Relevant to this discourse is making a distinction between leadership and management. They are two similar but distinct concepts. Management is seen as seeking order and maintaining stability while leadership is seen as seeking adaptive and constructive change. Leadership in the healthcare context aims to influence practitioners towards the achievement of the common goal of quality patient care. On the other hand, management as a process coordinates and directs the activities of an organisation to ensure it achieves its set objectives. Management ensures healthcare resources (human such as doctors, nur ses and clerical staff and non-human resources like medical devices and consumables) are utilised in an efficient way whilst delivering effective healthcare service(Gopee and Galloway 2009). However, leadership is known to be complementary to management (Kotter 1999; Zaleznik 2004).

Study Of The Development Of Modernity Through A Tanzanian Sandal Pair Research Paper

Study Of The Development Of Modernity Through A Tanzanian Sandal Pair - Research Paper Example An item made at a particular time contains characteristics and information about that time. There is always some inherent meaning to every item. As stated above, most communities especially Africans used art and art-like items to preserve historical information. This kind of item arrived in Africa during the 13th century. During this time, the ocean and water bodies were the main ways of doing international trade. Islamic religion had been established along the coastal region. It can be said that the inherent meaning of this item was to depict trade as a form of modernization. People were able to obtain new ideas from other places and use the ideas in conjunction with their knowledge to make improvements. According to information from the museum, Islam was a religion that was manifested not only in the way of life but also using architecture and art. This particular item could symbolize the effect of Islam and also the exchange of ideas through trade. Sandals were made even before the 13th century, but this is a sandal that used the available materials to come up with something creative. Previously, sandals were made using leather, but this item is unique in that they used ivory and wood. Tanzanian sandal pair was also prepared in such a way that it too looks like an exaggerated footprint. What could be termed as very unique in this pair of sandals is that it helped in spreading and ensuring the sustenance of Islam in an object of adornment. This was important because of the pastoralist lifestyle of African people.the East African people; they had to keep moving in search of animal pasture so the architecture was not a good way of sustaining the Islamic figurative expressions. Every piece of item mostly has a hidden meaning to it. It is created to convey a

Strengths and Weaknesses of a Theoretical Framework Centered on Term Paper

Strengths and Weaknesses of a Theoretical Framework Centered on Universal Notion of Gender - Term Paper Example Because of the situations presented to them by such a framework, members of the same gender learn to love and help each other in the society. For example, men may learn to work together and help each other as they strive for financial resources to help their families. On the other hand, women also learn to help each other in carrying out household chores. A theoretical framework that is centered on universal notion of gender has strength of helping the society maintain law and order. Once a belief concerning a certain gender becomes universally known, those concerned, that specific gender, tends to abide by what that theory states. Women for example naturally respected men and effectively take care of the family. In this case, gender roles in the society are strictly observed thus maintaining law and order. From birth, each child learns what is expected from him or her in the society. If such children learn that, that is what is universally expected of them, or that is their status in the society, they easily accept and practice it. In most western countries, though women are engaging themselves in professional jobs, they still uphold the universal believe that they are their family’s caregivers. Therefore, they ensure, at all costs, that they observe their roles at home as expected. After work, they go home to take care of chi ldren and cook for the family as men go out to enjoy themselves in bars. The weaknesses of a theoretical framework that is built on universal notion of gender include gender discrimination. In this case, if a certain gender, male or female, is universality viewed as weak, for example females, such a gender will be discriminated universally in every society because such a notion is usually believed to be a fact. The other weakness of a theoretical framework that is built around the notion of gender is that, it hinders self expression and individual strengths. In this case, individuals may fear to come out publicly and express themselves because of fear of the way the society might perceive them. For example, the African woman is believed to be inferior to the man, and is only supposed to care for the family. Such a woman may hardly express herself, and interests in the society, especially political ambitions. In Africa, women rarely stand out in the society for political or education al reasons because they can rarely succeed as almost everyone believes that that is not their role because of gender. Domestic labor among girl children has also had a negative impact on school performance among girls. They are expected to help their mothers as they learn the roles of motherhood instead of fully concentrating on education. Kinship and the Understanding of Gender Kinship is the study of links between different people that is based on descent, adoption or marriage (Vigdis, n. d.). Kinship has been a domain of definition in anthropological investigations since it was incepted in the late 19th century. Major paradigmatic changes in anthropology like feminism, cultural turn and political economy made kinship to undergo many restructuring phases. Detailed complexities in the system of kinship were considered important in the understanding of societies that were not from the west. Anthropological studies of kinship have been used to help in the understanding of gender as w ell as new forms of family, genetic development, lesbian and gay movements. In anthropological history, kinship is seen like a social institution

Ending Hunger in the Elderly Population in America Essay

Ending Hunger in the Elderly Population in America - Essay Example It is surprising to note that this problem is growing on a large scale in the United States of America that believed to be, the most powerful democracy in the world. Economists argue that this condition is specifically created by the inequity in the food distribution system of the country, and food insecurity is increasing at an exceptional rate, especially in the elder population (Nestle & Guttmacher, 1992). According to a survey conducted by Weill, (March 2008), a majority of the elderly population in the United States of America is suffering from malnutrition and food insecurity.He proposed that a solution lies in developing a better food distribution network in the United States of America which should provide food according to the needs of the individual and/or family irrespective of race, religion, or age. This solution is the most logical one based on an observation registered by (Pothukuchi & Kaufman), 1998, that points out a deficency in the food distribution system in the U nited States of America. The growing phenomenon of hunger is also causing the health standards of elders to drop significantly. The underlying fact is that the medications require healthy food intakes to maintain their effectiveness, although, elders are being provided with high quality medicines by federal agencies, but these people need healthy food. During the medical treatment, these medicines make a human body weak, for this reason, the body needs healthy and ample amount of food to survive to fight this weakness caused by medicines. But, at the same time most of the government policies to eliminate hunger are proving to be a mere lip service, many multimillion projects are not implemented to their full potential (Notz, 1971). These failed projects to eliminating hunger in elderly population is causing level of frustration in the general public of US, but the government is also facing a severe deficit in the city of New York alone, therefore, governmental financial resources ar e bearing high pressures regarding fulfilling the needs of public. Inavailability of food for elderly population is forcing them to forego at least one meal each day to fulfil their other necessities such as housing and insurance, this trend is also contributing towards making a bad condition worse in relation to the food supply for elderly population (Gomez & Ranney, 2002). Many researchers are of the view that, elders should be trained in such a way which could help therm in becoming useful members of the society, but this point of view is not a realistic one, because with the increase in age the mobility and strength of an individual is compromised rendering a person unable to work actively. Thus, it is the responsibility of federal government to work for the welfare of these people. On the other hand, international organizations, including UN, are playing a significant role in attempting to eliminate the hunger peoblem; however, their effort is less than effective, because, thes e organizations provide aid to the local government and cannot interfere in the internal affairs of a country. Due to this reason, local government utilizes these fundings in an unjust method, so these international organizations should be empowered to manage and implement these hunger elimination programs by themselves. NGOs of all kind are more than interested in their profitability, therefore human compassion is

Business law Essay Example | Topics and Well Written Essays - 750 words

Business law - Essay Example The following are the people who were present during the court session Chief justice: I. Beverly Lake List of judges on the panel 1. Justice Sarah Parker 2. Justice Robert Orr 3. Justice Mark Martin 4. Justice Robert Edmunds 5. Justice George Wainwright 6. Justice G. K Butterfiel Bailiff: Corporal Mike Baker Various Attorneys were present during the session. The various functions of the people shortlisted above during the court session included: Bailiffs The main function of the bailiffs who were present in the room was to provide security. When they arrived at the court, they first ensured that the court room was clean. They checked for things that might have been hidden in the court, which might interfere with the security such as bombs or grenades. When people were checking into the court room, they conducted a search to ensure that no one entered the court room while armed. As the session moved on, they declared the entrance of judges in the courtroom and ordered that everyone st ands in honor of judges moving into the room. They also made sure that judges have case files and other supplies that they needed for their work. The bailiffs also apprehended anyone who tended to disrupt peaceful procedures of the court and ensured that there was no contact between the judges and the members of the public so as to enforce security. In addition, they were charged with the mandate of ensuring that people do not enter the court room when juries are giving instructions to the court. The last function that was performed by bailiffs was escorting the judges to places like restraints to keep their security after they are through with the session. Judges The panel of judges who were present in the court room had their first duty as listening to all that was said in the court room. Everyone in the court referred to the judge as â€Å"your honor† whenever they, as a matter of demonstrating respect to them. They listened carefully to whatever was said and compared it t o the law that they know with a purpose of understanding whether a crime has been committed or not. They were dressed in the court official robes meant for judges. Seated on an elevated seat that is referred to as a bench, the chief justice together with the other judges were able to control the whole courtroom and what went on. Attorneys Lawyers of each party were seated at the counsel table as the proceedings went on in the court room. They took turns when speaking to the judges and were keen not to interrupt the proceedings of the court when not allowed to speak. Whenever each lawyer was given time to speak, he or she presented facts that would have put the case at hand more favorable to them. The prosecutor who represented the government and society as a whole was also present within the court room. There were no defendants who were acting pro se in the cases that were being heard on that day. Witnesses They were concerned with giving facts about the case that was under dispute in the court room. They sat on the witness stand when they were giving out their testimonies and were asked questions by the other party that they were witnessing against. They were in most cases referred to as defense witnesses. Courtroom Deputy They were seated next to the judges and are tasked with the responsibility of administering oaths to witnesses and also marking the exhibits. They however assisted the judges in ensuring that the activities of the court ran smoothly. Court reporter They sat near the witnesses and their

I will upload the directions for this paper Research

I will upload the directions for this - Research Paper Example Melba, a teenage girl, is among the few black students selected to commence the integration of schools in adherence to the court order. The process of integration is challenging since most white people are opposed to the process. The resistance ends with the intervention of the National Guard, which enforces the Supreme Court order. Critical review of the book Initial events The initial event, which triggers the subsequent events, is a Supreme Court ruling. In Brown vs. Board of education, the court ruled that it was unlawful to for to segregate students on a racial basis. Accordingly, the state ought to begin an integration program, which will ensure that the school contain students of both races1. Initially, the book discloses the miraculous recovery of Melba who was at the verge of death owing to the negligence of a white nurse. Melba was born in a segregated society. However, she manages to overcome all hurdles that the discriminatory society puts in her ways beginning from her b irth during a Pearl Harbour day to her early adult hood. Melba struggles against her aggressors reveals a non-violent opposition towards segregation in the American society. The white majority segregated the black community was a fact that Melba came to learn later in life. A white man repeatedly harassed Melba’s mother since his father could not protect him. ... Segregation denied young black students a chance a proper education2. Resistance at the Little Rock school Violence erupted in this town as the white persecuted the minority community. This culminated in a dilemma among the black people. Owing to the loss of lives and jobs among the black people, many wondered if it was worthwhile to champion for the integration of schools. A considerable proportion of the black people opposed resistance against the status quo in the education sector. Despite the majority of the Caucasian people opposing the integration, a few helped the black students who took part in the integration process. This reveals that there were people in both communities who wanted a peaceful resolution to the above problem. Blacks opposed to the resistance to the status quo in the education were regarded as traitors. Conversely, white people who sympathised with the treatment of black people were also traitors in their community. White children attended schools that had g ood facilities while their counterparts attended schools with dilapidated facilities. Melba’s personal tribulations Melba’s actions to fights segregation had various implications on her life. He was against her decision to attend a white school since they would receive threats or risk attacks by their oppressors. Melba’s stand resulted in numerous conflicts in her family as they were exposed to attacks and constant threats. Despite her father’s opposition to her decision, her grandmother and mother seem to fully back her well aware of the dangers they will encounter. In one of the incidences, Melba and her mother receive assistance from white people who help

Are alternative energy sources the answer to ending human dependence Thesis

Are alternative energy sources the answer to ending human dependence on oil - Thesis Example As such, it is necessary to emphasize the fact that the environmental crisis is not only about environmental problems, but it is about the intertwined concerns regarding politics, economics, society and ideologies (Bodley 2008, p. 43). In this regard, this research will try to address one of the most urgent environmental issues that we are facing: are alternative energy sources the answer to ending human dependence to oil? This is a crucial question because the reality of human dependence to oil is attested by the fact that countries all over the globe have to ensure energy security to sustain their economies and in case they fail, the threat of conflict becomes inevitable (Moran and Russell, 2008). Furthermore, as of 2009, 85 percent of total primary energy consumption involves the use of fossil fuels – oil, natural gas, and coal (Statistical Review of World Energy, 2009) and this is a critical issue because oil is finite. In addition, the peril of global warming coupled with the probability of the increase in consumption in the coming years creates urgency in addressing the question are alternative energy sources the answer to ending human dependence to oil? Everybody, in one way or another, is concern with global warming and in finding the answer on how consumption of fossil fuels may be reduced. Alternative sources such as oil sands, heavy oil, and wood/other biomass, coal hydropower, shale oil, solar energy, gas hydrates, wind energy, nuclear fission, wave energy, geothermal tidal power, fusion, ocean thermal energy and conversion are all considered as alternative sources of energy. However, can they end human dependence in oil? First, as mentioned, oil is finite. There is a need to come up with alternative sources of energy because the reality of diminishing fossil fuel supplies is a fact. The fossil fuel that the world is currently using is built on 500

Cybercrimes Research Paper Example | Topics and Well Written Essays - 500 words

Cybercrimes - Research Paper Example 9). Balkin and Information Society Project (2007) in their book wrote that â€Å"cyber crime has the basic characteristics of traditional crime, but it is not territorially based† (p. 218). Unlike crime, cyber crime can easily transcend to national boundaries. The laws governing cyber crimes in several countries are unenforceable due to the lack of a means of protection that businesses and governments are able to rely on, in place they have relied on technical measures to protect themselves from those criminals who would deny access of specific information, steal or even destroy information that is valuable. Cyber crimes come in three categories: cyber crimes against a person, property or a government. Cyber crimes committed against a person include crimes like harassing an individual via email, posting, distributing or disseminating materials such as pornography, and having indecent exposure. This type of crime possesses a serious threat to the younger generation and may cause scars that are irreparable to the young if it is not prevented. While crimes such as vandalism of computers and transmission of programs that are harmful like viruses, fall under cyber crimes against property. Cyber crimes against properties often take place in organizations. For instance, an engineering company may decide to steal another company’s database by using a spy. The other is the cyber crimes against governments come about when an individual or even a group for people threatens international government by terrorist its citizens. An example of his type of crime is when an individual cracks a webs ite containing important government information. Cracking is also a cyber crime that has become common; it gives a person a dreadful feeling knowing that someone broke into your computer without the owner’s knowledge. People and the government must understand cyber

Proposal on Energy Audit Essay Example for Free

Proposal on Energy Audit Essay Proposal Energy Audit: An energy audit is an inspection, survey and analysis of energy, flows for energy conservation in a building, process or system to reduce the amount of energy input into the system without negatively affecting the output(s). Energy audit identifies opportunities for financial savings by elimination of wasteful use of electricity, coal and fuel oil, without affecting the process or quality of product. Need for Energy Audit: It has been established that Energy savings of the order of 5 to 20% are possible by optimizing use of Energy with better house keeping, low cost retrofitting measures and use of Energy efficient equipment at the time of replacement, renovation or up gradation. Pakistan Electrical Energy Scenario: Electrical power is indeed the blood supply to the muscles of our industrial and informational societies. We take the ready availability of electricity for granted as a source of light, propulsion, heat and refrigeration and only seem to notice its importance if it is suddenly unavailable. Our information and telecommunications systems, our transport systems and modern medicine all depend on electricity as an energy source. The economic engine and the wheels of industry, agriculture and business need energy to move forward. On the social aspect, energy consumption per capita is a key indicator of the quality of life of the citizens and community. Unfortunately in Pakistan, in spite of all claims and rhetoric by all governments, real solutions to meet the energy equirements of the nation have never been formulated or achieved. As a consequence, Pakistan’s economic, industrial and social growth has been greatly constrained. Due to an increasing gap in energy demand versus capacity. The crisis, of course, needs long-term energy generation solutions. But it also needs immediate energy conservation. And one important way of doing this is through Energy audit HESCO Profile HESCO is a public utility company, providing electricity to the entire Sindh province, except for Karachi and parts of the Thatta district. HESCO was incorporated in 1998 under the Companies Ordinance 1984. My research leads to Energy Audit of particular Industry that comes in Hyderabad Circle of Hesco. Area of Operations of HESCO Hyderabad Circle-I (5 Divisions, 22 Sub-Divisions) Hyderabad Circle-II

History and Evolution of Leadership

History and Evolution of Leadership A leader. as always said, is born, not made, but leadership is certainly a continual evolution process of qualities like vision, commitment, discipline, trust, integrity, innovation, motivation, authority, dedication, humility, creativity etc., within leaders. Most of these qualities, if not all, in a leader contribute to the success of an organisation. For a reputed business school like Cardiff Business School, choosing a leader who can shape the aspirations enhancement of the institution to become ideal Business establishment is very vital. at the same time intricate. Choice of new Dean to replace Professor McNabb should be influenced inspired by the facts that how much the new Head is able to contribute towards the institutions achievement perform greatly in the new role. To evaluate this we need to have a brief idea about leadership theories performances. A look on the history of leadership finds that the literature on leadership performance can be broadly categorized into a number of important phases. (Ogbonna, 2000; Harris, 2000). Early studies on the leadership skills concentrated on identifying the personality traits which characterized successful leaders, and are known as ‘trait studies (Argyris, 1955; Mahoney et al., 1960). Trait theories assume that successful leaders are ‘born and that the leader has certain innate qualities which distinguish them from non-leaders (Stodgill, 1948). Ralf Stodgill reviewed hundreds of trait studies (1948, 1974, p.81) over a period of time, which can be summarized as the personality traits and other in-born qualities of the leader can be identified it is possible to select those individuals promote them into leadership positions, they then emerge to take power, regardless of the social organization or historical context. Another set of approach is ‘Set ‘Behavioural the ories. It summarises about the behaviour style that a leader chooses or adopts to solve problems. (Hemphill and Coons, 1957; Likert, 1961). Similarly the Viewpoint of theories like situational contingency is that leadership effectiveness is dependent on the leaders diagnosis understanding of situational factors, followed by the adoption of the appropriate style to deal with each circumstance. (Ogbonna, 2000; Harris, 2000). All the theories reviewed above illustrate that leader plays a very important role in the progress performance of the organisation. But if one critically evaluates the affect that a leader has on the organisation then, one can say that the decision a leader takes can sometimes be restrained by certain factors. Some people argue that constraints placed on leaders are due to situational factors. Although there have been few studies that have a direct bearing on this important issue, research on sports organisations has tended to support this argument. In practice however, this argument has rested heavily on the findings of just one major study that of Lieberson and OConnor (1972), which has become the most commonly cited evidence of this issue and which is widely regarded as the major counterpoint to the proposition that leadership makes a difference. (Thomas, 1988) One more key aspect to discuss here is that of sex differences in leadership, as our main concern is to look for the leader that can be Head of Cardiff Business School, we should not be biased to only one gender. Male leaders are rated as more effective conscientious then female leaders, but A Meta-analytic review of 17 studies examining sex differences in leadership indicates that male and female leaders exhibit equal amounts of initiating structure and consideration and have equally satisfied sub-ordinates. (Platz, 1986). More More women are becoming managers; this rise in trend is because of the federal implication which prohibits sex discrimination in employment. Despite this rise many individuals still believe that men are better leaders. (Bass, Krusell, Alexander, 1971; Bowman, Worthy, Greyser, 1965; Rosen Jerdee, 1978; Schein, 1973) there are some evidence to refute this argument indicating that men and women may differ in personality characteristics which affects the lea dership styles effectiveness. (Hoffman, 1972; Maier, 1970; Megargee, 1969; OLeary Depner, 1975; Templeton Morrow, 1972) Furthermore several studies have demonstrated that men and women differ in leadership behaviours also. (Bartal Butterfield, 1976; Petty Lee 1975)

Issues of SME Entrepreneurs and Investment Aspects

Issues of SME Entrepreneurs and Investment Aspects Introduction Start-Up Entrepreneurs who wish to transform their business dreams into reality will one way or another reach out for the external finance. Many new entrepreneurial start-up businesses do not obtain start-up financing (Gruber, 2004; Mason Harrison, 2004b). Private individual investors with a high net worth, known as business angels, represent the largest source of start-up financing for new entrepreneurial businesses (Aernoudt, 2005a). Establishment of new businesses is vital to the development and growth of the countrys economy (Reynolds et al., 2003). Since the first publication on a business angel was published by (Wetel, 1981), many authors have researched on the informal investment market and studied closely monitoring business angels characteristics, investment criteria and issues related to an investment. According to (Masons Harrison, 2000), it is cited that over the past generations many researches have been carried out in different countries and compared with each other. This dissertation will discuss about the mind of an investor and how they operate in terms of investing their financial assets in a start-up business they believe in succeeding. The main reason is to broaden our understanding of investment aspects of a business angel and how an entrepreneur should respond to it. To find out information sources on business start-ups, refer (Appendix 1). Problem Discussions Many business entrepreneurs do not have the luxury of initial capital thats needed to start-up a new business as it requires a vast amount of finance equity (Clarke, 2005; Sohl, 2006). How do entrepreneurs find the initial capital and which investor will trust the business ideas and fund the company? What is the difference between a good investment and a poor decision? What are the requirements of a business angel? These are the main issues SME business starters go through in the initial stages of a business (Wiltbank Boeker, 2007). The answers for all these issues vary depending on several criteria. For example, it could vary due to the type of the business the entrepreneur wish to start, the capacity of the risk involved, the return of investment period and especially the preference of the entrepreneur working alone or with the influence of the investor (Kaplan Schoar, 2005). The dissertation tries to reach active business angels view points on the issues of SME entrepreneurs and investment aspects. The researcher is confident that this thesis will benefit both the business angels and entrepreneurs. Introduction Of The Research Subjects According to a survey conducted by the (EIRO), the governments Bolton Committee in its 1971 report clarified that there is no single definition to explain Small to medium enterprises because of the wide diversity of businesses that operate in the United Kingdom. The report also explained that small to medium business varies according to the type of sector it operates. However section 249 of the Companies act of 1985 affirms that a small company will have to attribute at least two of the following characteristics; Turnover less than GBP 2.8 million Total balance sheet less than GBP 1.4 million Employees less than 50 And a medium sized entrepreneur should operate under the following regulations; Turnover less than GBP 11.2 million Total balance sheet less than GBP 5.6 million Employees less than 250 However in real practice, business functions that operate under small to medium terms, take on a range of working definitions depending on their business objectives (Leedy Ormfod, 2001). EIRO European Industrial Relations Observatory Formal And Informal Venture Capitalists Venture Capital is also known as risk investment (Langberg, 2004). Risk investment is invested as shares and the financier expects a superior â€Å"rate of return to recompense for the amount of risk invested (Kelly Hay, 2003). There are 2 main types of venture financing in the UK and they are; formal venture capitalists (large financial institutions) and informal venture capitalists (wealthy private investors commonly known as business angels). The UK Formal Venture capitalism began in the 18th century (Harding Bosma, 2007). During that time Entrepreneurs found affluent individuals to get support for their new businesses. This informal tradition of funding eventually formed a business trade by a number of venture capital firms created by many wealthy. Currently there are over 120 venture capital establishments in the UK, which fund billions of cash annually to the UK SME market (Frielinghaus et al., 2005). Informal venture capitalists are mainly recognized as Business Angels who are wealthy individuals with a high class reputation of managing well run businesses (Masson Harrison, 2004). As investors business angels bare a larger risk than venture capital firms as they have to be liable for the loss of the investment incase the business they invest lose out. On the other hand venture capital firms have many investors who can be hand in hand to one another in a bad situation (Masson Harrison, 2004). Business angels are more common in UK where they tend to invest more on SME businesses where banks and venture capital firms decide not to, which will be further discussed under evidence analysis (Madill et al., 2005). Business angels tend to be get more closer to the entrepreneur with a higher level of involvement in the firms operations, which shows that their choice of target firms are somewhat different than venture capital firms requirements and business angels investment decisions are made solely on the basis of the relationship between the entrepreneur and the investor (Masson Harrison, 2002). Although entrepreneurs could use formal informal investors at different stages in the business as shown in the (figure 1), it shows where business angels are needed where we will further discuss later on (Aernoudt, R., 1999). Figure 1: Financial sources and their involving stages Source: (VENTURE CAPITAL, 1999, VOL. 1, NO. 2, 187 – 195) Objectives Understand a business angel, an entrepreneur and their relationship in a SME start-up businesses in UK Identify detailed requirements of business angels when it comes to an investment Determine how different countries cultures undertake investments Literature Review This literature review is concerned about the academic groundwork of the research objectives which inquires about investment categories business angels tend to invest in a small to medium sized business sector. It also looks at how different authors have elucidated about the investment natures of different countries like New Zealand, Denmark, Sweden etc. In order to give a clear structure of this academic review, it will be categorized into subsections to converse different authors views about the research objectives. First the review will discuss about the academic Theories of investments. Then it looks at Business angels and entrepreneurs in the UK. Finally the review will investigate different countries nature of investments in their own markets. 2.1 Theories of Investment There are several investment theories defined and compared by many authors. This thesis mainly focuses on informal investors who wish to invest on SME start-up businesses. Although Stock market related investment theories are irrelevant for our objectives it will be impolite to ignore discussing all investment theories. Therefore lets investigate the theories and in the later chapters discuss the practical concepts (evidence) used currently by successful investors. Among the following theories, Efficient Market Theory will be related to investment in stock listed companies and â€Å"principal-agent, prisoners dilemma framework resource based theory† will be about business angels investing in SME businesses. 2.1.1 Efficient Market Theory (EMT) According to (Burton Malkiel, 1973), the stock values that show in the stock market almost define where the company is in its territory and how well it performs compared to its competitors. He suggests that stock prices may not always be accurate but it can be correct most of the time. On the other hand few business managers disagree, explaining that there companys values are priced unfairly and stock prices do not accurately replicate the performance of their companies (Burton Malkiel, 1973). The following discussion will communicate what efficient market theory is about and explore the arguments against it. According to (Michael Firth, 1975), it is stated that there were many academic researches carried out to monitor the share price behavior by investment advisory firms and investors to obtain profitable investment strategies. What is EMT or EMH? (Burton Malkiel, 1973) explained that Efficient Market Theory (EMT) is also known as Efficient Market Hypothesis (EMH) on a more technical term. This theory is a method of defining how stock values behave the way they do in terms of investment decisions. (Eugene Fama, 1965) later categorized EMH into three sub assumptions and they are as follows; 1. Weak form (EMH) This method assumes that current stock values replicate all past information about the specific company such as performance measurements, returns etc. By analyzing the stocks price chart, it can help the investors verify as to what the future holds for the companys stock values (Eugene Fama, 1965). 2. Semi strong (EMH) The assumption built on this method is that all the publicly available information and historical information replicates the values of a companys stock prices in the market. So the investors could gain more knowledge and confidence through a companys financial statements and recent developments. It will enable the investors to judge the company future performance (Eugene Fama, 1965). 3. Strong form (EMH) This method expressed that, other than publicly available information, the investors get an inside look into the company which largely reflects the stock value (Eugene Fama, 1965). Principal Agent Theory In general terms Principal Agent theory is defined as a business management framework to observe the behavior between employer contractor or employer employees (Spence and Zeckhauser, 1971; Ross, 1973). So here this theory can be applied to the business angel entrepreneur relationship and discuss its implication on the investment process (Jenson and Meckling, 1976; Harris and Raviv, 1978). In the corporate business, the principal (Business angel) usually appoints the agent (manager) or else make sure the entrepreneur works according to the principals ideas in the business (Jenson and Meckling, 1976). The principal usually make sure that the agents business intentions are as similar to him/her (www.financemind.com). In other words, the principal wishes to make sure that the business runs well and succeed the way he/she believes best (Eisenhardt, 1989). But on the other hand, over an informational advantage the agent could think otherwise for the business. This is where the problem of shared risks arises as (Eisenhardt, 1989) explains, where the Investor (principal) and the agent (manager) could end up having different opinions towards the business. The agency theory is widely used in venture capitalism (Bruton, Fried Hisrich, 2000a). Having conflicts due to differences in interests, it is essential to minimize these risks as (Bruton, Fried Hisrich, 2000b) agrees with Eisenhardt. To reduce these risks investors make sure that they actively monitor the companies they invest and build a better and close relationship with each other (Busenitz, Fiet Moesel, 2004). According to (Sweeting Wong, 1997), using a principal agent theory to evaluate a business angel investment is not highly recommended anymore. It is much better to have a mutually agreed relationship. The agency theory shows that money motivates both the principal and the agent (Busenitz, Fiet Moesel, 2004). But financial motivations or economic factors do not relate business angels relationship with the entrepreneur in this theory (Wijbenga et al., 2003). Prisoners Dilemma Framework (PDF) This is yet another theory that can be used in an investment study. In this framework there can be either a conflict or a development between the two parties involved (Cable Shane, 1997). In this theory, both parties can either go in their separate interests and gain a certain pay off or co-operate with each other and achieve a higher pay off (Bruton, Fried Hisrich, 2000). The prisoners dilemma framework promises better fitting for the business angels and the entrepreneurs because it does not presume a hierarchical relationship between the two parties (Bruton, Fried Hisrich, 2000; Cable Shane, 1997). Still the PDF theory only focuses on the investor – entrepreneur relationship and not any of the business angel investment activities or impacts. It concludes that the theory is not suitable enough to define a business angel entrepreneur relationship (Cable Shane, 1997). Resource Based Theory The resource based theory has many influences on the entrepreneurship. Business angels can contribute many resources other than cash it self. According to Freear, Sohl and Wetzet (2002), angel investors can contribute five types of resources to an entrepreneur: Human, physical, social, organizational financial. Human capital can be taken as angel investors contribution of business knowledge, skills and business experience to the firm (Erikson Nerdrum, 2001a). Social capital can be gained when business angels provide their business contacts (Angel networks). By this, the entrepreneur has the opportunity to meet other investors and extend the funding possibilities to the business. Physical resources can be machines or factories and organizational capital can be described as the influence and advice the investors can give for the business for an example making the business improve on its experience (Erikson Nerdrum, 2001b). Financial capital consists of the funding provided in the beginning of the start-up phase (Cassar, 2003). By far this presumed to be the best suited theory to define a relationship between a Business angel and an Entrepreneur where all aspects are covered (Rose, 2005). Summary Of Theories Looking back at the efficient market theory, Agency theory, Prisoners dilemma framework and Resource based theory; it seems to be that the â€Å"Resource based theory† is the most suitable theoretical framework for the Business angel investments. However the Resource based theory has to be amended with few assumptions: Human capital should be taken as the (knowledge, skills business experience) investors contribute with (Ardichvili et al. (2002). Although we discussed the above theories, many researchers have described and tried to apply other similar theories to the investor investee relationship [Example: Procedural Justice (Busenitz, Fiet Moesel, 2004), learning and knowledge-based view (De Clercq Sapienza, 2002), resource exchange theory (Gomez-Mejia, Balkin Welbourne, 1990)]. All the investment theories have a common characteristic that have only a few relevant investment features in them to the investor-investee concept. To make it applicable for the Business angels and entrepreneurs all these theories should have few amendments and adaptations (Sapienza, Manigart Vermeir, 1996). Small And Medium Enterprise (SME) William Kendall, the Chief Executive of Whole Earth Ltd stated, â€Å"SME business is a fantastic place to work. You have to think innovatively to be an entrepreneur. Its thrilling and its enjoyable.† According to (European Industrial Relations Observatory) there is no general definition for SME. But the (Governments Bolton Committee, 1971) cited that the characteristic of a SME firm is a self-sufficient business being owned by a single owner with a small market share. The report also stated that the size of the SME changes in different industries. Although it is hard to give one specific definition for SMEs, it can be measured and classified by numbers (employees revenue rates). The defining measurements are as follows: Definitions: (The Department for Business, Enterprise and Regulatory Reform – BERR, UK) has defined SME with 3 types of measurements and those are based on amount of employees: Micro firms: 0-9 employees; Small firms: 0-49 employees and Medium firms: 50-249. The (European Commission) changed the definition of the SME to increase the partnerships and innovations. The definition which took affect on 2005 is: â€Å" A Micro, Small and Medium-sized enterprise (SME) is made up of firms which employ less than 250 employees and have yearly revenue less than 50 million euro†. Importance Of SME In The Uk The country has raised the level of growth productivity in the last era reducing the competition gap between other countries like US, France Germany (BERR, 2008). Currently UK is reacting well to the global prospects and challenges. The growth of the SME market increases each year promising to boost the economy of the country. According to (European Business Angels Network (2007) Dissemination Report on the Potential for Business Angels Investment and Networks in Europe), the employment and annual revenue contribution of the SME industry as a whole is more than 50 percent of the total. The UK government provides necessary support for people to step up and start their innovative business to increase the competition level of the country (www.berr.gov.uk). The Entrepreneur Earlier it was discussed that previously recognized agency theories explains that the investor, ensuring a healthy relationship is highly regarded as a successful investment aspect in an investment (Kelly Hay, 2003). Therefore exploring more about what authors have studied about entrepreneurs and investors is vital. The difference between a formal venture capitalist and a business angel is that a venture capitalist invests looking at the company and its ability to perform (Schramm, 2004). On the other hand the business angel focuses mostly on the entrepreneur to make sure there can be a good business relationship (Mark and Robinson 2000, p138). The entrepreneur is the only key to get the funding needed for a start-up business. As an entrepreneur, it is vital to gain the investors trust and confidence in the business idea. According to (Osnabrugge Robinson 2000, p123), it is cited that during a business start-up there is a high percentage of entrepreneurs failing to make good management decisions in the initial stages. It is very sensible for an entrepreneur to seek a business angel as they pay special interest on the business they invest in with all their resources including non-financial contributions. It could help fill all the management weaknesses of an initial stage of the business and sav e huge amounts of consulting and managerial costs (Mason and Stark, 2004). Entrepreneur Evaluation (Osnabrugge Robinson, 2000) had explained that entrepreneurs should be aware that the investor not only pays attention on the business proposition but also the entrepreneur himself to ensure the safety, confidence, enthusiasm and the ability to depend on the entrepreneur. Trust is something investors work hard to find in an entrepreneur, because they invest large amounts of financial resources on a person they met in a short period of time (Osnabrugge Robinson 2000, p125). According to a study conducted by Stedler and Peters; entrepreneurs capability to convince the business angel to invest is very important and showed that 81% of business angels has expressed that a positive first impression established in the first meeting as important (Stedler and Peters, 2000). When it comes to angel investment decisions being made, business angels need to ensure that the entrepreneur should be a proficient manager (Gerald and Joel, 2000). Loyalty, leadership, reliability and personality are important characteristics that angel investors look into when they evaluate entrepreneurs. An entrepreneur should be able to have those qualities to gain an influence of the investor (Aernoudt 1999 Sappa 2006). The characteristics that separate a good ownership from a poor is, that if the entrepreneur is able to establish trust and leadership skills with confidence and make the employees follow him/her (Micah Baldwin 2007). Investors find it comforting to know that the entrepreneurs have invested partly on the business before seeking external investment. This gives the investor the idea that the entrepreneur has given all the effort in the involvement of the process and that the financial value of the business is appreciated (Osnabrugge Robinson 2000, p127). According to (Sappa 2006), business angels take lots of time and effort into finding out background information on the entrepreneur to ensure that the owner has the right expertise to manage the business he proposes. (Haines and Riding 1998) corroborates furthermore by adding that the entrepreneur sharing his/her previous business experiences and being much more practical about the business brings more information and confidence to the investor. Finally all the above characteristics that were discussed are very important for a new start-up entrepreneur to influence investments from professional business angels. Business Angels As we have gone through the theories of business angels it is important to know who business angels are in the minds of researchers. A business angel is a highly prosperous individual who can be a business person and willing to invest part of his/hers finance on a promising entrepreneur who has a potential to succeed (Isakssin 2000, Helle 2004). According to (Harrison Manson, 1999), there are three eras of business angel researches conducted in the investment business: First era of business angel research was conducted by United States of America in early 1980s. Authors like; (Landstrom, 1993) from Sweden and (Harrison Manson, 1992) from United Kingdom repeated the same work by giving out similar results. In this era it was solely concentrated on business angels thoughts, activities and characteristics (Freear, Sohl Wetzel, 2002). Second era enabled researchers to go deep into business angels by investigating their post investment involvements. Theory building up and applying for business angels began in this era. Although there were theories built for business angels, it wasnt developed enough to be completely suitable for the activities of angel investors (Connolly et al., 2006). Third era will be the era about the future researches of business angels. There were many faults in the previous researches done and they need to be taken in a new direction to make sure the researches investigated will produce good results (Arenius Minniti, 2005). This would finally make us understand the minds of business angels and match the Business angel – Entrepreneur relationship under changing economy, culture competition (Connolly, OGorman Bogue, 2006). By the help of (Harrison Mason) Swedish researchers like (Sorheim 2005) will enable to investigate on the changing environment of Business angels. This also mean that the theories being found in the previous eras could finally be developed enough to apply on the business angels current investment methods and get positive results (Gompers Lerner, 2007). Characteristics Of Business Angels Almost all the business angels who actively invest on new businesses have few common characteristics. They all have the main motive to increase the potential of their financial capital (Duxbary, Haines Riding 1996). But (Landstrom 1993, Osnabrugge and Robinson 2000) explained that all business angels should not be profiled in a similar way because cultures and person to person could make them different to each others ways in terms of making a personal investment decision. Although there could be many differences between business angels, (Osnabrugge and Robinson, 2000) also stated that there are general motives behind all business angels when it comes to a certain result they expect out of an investment. When Venture capitalists and business angels are taken together it is wide clear that Business angels are individuals who prefer to invest less financial capital than of the formal investors who invest large amounts. Business angels also prefer to invest their money mainly on initial stages of a business (Osnabrugge and Robinson 2000). When it comes to formal investors, they are selective in industries they invest on depending on a lot of information and research. But the Business angels invest on the entrepreneur regardless of what industry sector the business idea would succeed on. They do little research on the industry but heavy research on the entrepreneur they expect to build a trust worthy relationship, because they depend on the entrepreneur mu ch more than the venture capitalists that only rely on the market and the performance of the company (Osnabrugge and Robinson 2000, p63). Furthermore a research conducted in the Norwegian angel market and studies conducted in the US have identified several angel categories. There could be cultural and economical differences among countries like (UK, Sweden Singapore) but angel investors do have likely investment standards in those countries (Landstrom 1993). (Freeny, Haines Riding 1998) explained that the markets which business angels are currently active are where they are wiling to invest more on. There could be many differences in Business angels personalities and points of views of the whole investment process. There are studies that showed the â€Å"most regular business angel†. It is stated that the age, where successful individuals decide to invest their money on a business is when they get to their 50s. This shows that it is almost a retirement phase from a business point of view. This can be confirmed by a research carried out in Germany where it stated that 95% of BAs were male individuals, 56% were directors or owners of their businesses and 17% were individuals who were in the director board on other organizations (Stedler Peters, 2003). Even (Osnabrugge and Robinson 2000, p156) supported Stedler and Peters by explaining that the individuals were in director posts and had good business experiences before they decide to move on into personal investments. Most business angels involve themselves heavily during the initial stages of start-up businesses. They wish to invest near to their homes to make sure of convenience. And Business angels are well educated, wealthy beyond a certain average and expect to have a good life with their feet up on a desk holding a glass of wine, which we all hope to achieve one fine day (Freeny, Haines Riding 1998). Although this thesis aims to look at the characteristics of UK business angels, it was clear by all previous studies that there are common statistics about their decisions and behaviors. This tells us that, UK angel investors too are not far from what was described before in the theories. Still it is important to point out few common characteristics of UK business angels; Common Characteristics Of UK Business Angels According to (Ardichvili et al., 2002), Business angels in the UK have been or still are active business owners. They invest in more similar markets to what they are operating in, which saves them a lot of time trying to understand the market and the operations. Like all business angels, UK investors are highly motivated by the return of their investments and the effort (non financial motives) they have put in to the start-up business. They do enjoy being a part of a new business hoping to succeed for the better part of the community and the country (Landstrom 1993). Furthermore UK business angels prefers and makes sure they invest on new businesses that they could visit regularly, which means they invest in promising firms which will locate geographically near to where they reside (Ardichvili et al., 2002). BAs would rather invest in firms within their residing area, than investing in a location where they find it hard to meet the entrepreneur even though it would double their investments (Harrison, Mason Robson, 2003). Most British angels prefer their entrepreneurs operate within 100 miles of their homes although investors who invested on technological businesses are willing to travel long distances (www.bbaa.org.uk). According to Mason, British angels mostly prefer to invest on small businesses during its initial stages where it is not too late to put in not just their finance sources but their advice and experience to get things on the right track. This, in a way gives them satisfaction of being a part of a promising business (Mason, 2002). After going through the common characteristics of British Angel Investors, it is quite clear that there isnt a major difference compared with the international countries like Sweden and Denmark which will be discussed later. We discussed about Business angels and it is vital to know the categories of their investments. Investment Aspects Of A Business Angel One of the objectives of this thesis is to find out how Business angels in UK and other similar countries decide to invest on a certain investment they find it promising. An investor looking for good reasons to decide on an investment is known as Investment Aspects or Investment Criteria (Landstrom, 1993). It is a way of evaluating the business and the entrepreneur to ensure the security and the profitability of the business proposal. According to the venture capitalism and angel investment comparison carried out by (Osnabrugge Robinson 2000), it revealed that although there were similarities among their attributes in their investment standards there were a certain amount of dissimilarities which makes business angels favorites for a new start up business. For an example, venture capitalists are prepared to invest almost in all stages of a business and therefore they look into all the past and probable financial records of the company. On the other hand the business angels much prefer to invest on a start-up phase of a new business where past financial experiences are not so important to them (Osnabrugge Robinson 2000). Most business angels give similar priorities to investment aspects, when it comes to making a decision. With much researches conducted over the past years (Osnabrugge Robinson 2000) has come up with a selected summary that illustrates the criteria of an investment. The following (Table 1) of twenty-five selective factors are prioritized by well known angel investors; Priority order Priority factors for an investment 1 passion of the industrialist 2 Dependability of the industrialist 3 Sales prospective of the product 4 proficiency of the industrialist 5 Entrepreneur(s) first impression 6 Development prospective of the market 7 Quality of the product 8 Benefits Issues of SME Entrepreneurs and Investment Aspects Issues of SME Entrepreneurs and Investment Aspects Introduction Start-Up Entrepreneurs who wish to transform their business dreams into reality will one way or another reach out for the external finance. Many new entrepreneurial start-up businesses do not obtain start-up financing (Gruber, 2004; Mason Harrison, 2004b). Private individual investors with a high net worth, known as business angels, represent the largest source of start-up financing for new entrepreneurial businesses (Aernoudt, 2005a). Establishment of new businesses is vital to the development and growth of the countrys economy (Reynolds et al., 2003). Since the first publication on a business angel was published by (Wetel, 1981), many authors have researched on the informal investment market and studied closely monitoring business angels characteristics, investment criteria and issues related to an investment. According to (Masons Harrison, 2000), it is cited that over the past generations many researches have been carried out in different countries and compared with each other. This dissertation will discuss about the mind of an investor and how they operate in terms of investing their financial assets in a start-up business they believe in succeeding. The main reason is to broaden our understanding of investment aspects of a business angel and how an entrepreneur should respond to it. To find out information sources on business start-ups, refer (Appendix 1). Problem Discussions Many business entrepreneurs do not have the luxury of initial capital thats needed to start-up a new business as it requires a vast amount of finance equity (Clarke, 2005; Sohl, 2006). How do entrepreneurs find the initial capital and which investor will trust the business ideas and fund the company? What is the difference between a good investment and a poor decision? What are the requirements of a business angel? These are the main issues SME business starters go through in the initial stages of a business (Wiltbank Boeker, 2007). The answers for all these issues vary depending on several criteria. For example, it could vary due to the type of the business the entrepreneur wish to start, the capacity of the risk involved, the return of investment period and especially the preference of the entrepreneur working alone or with the influence of the investor (Kaplan Schoar, 2005). The dissertation tries to reach active business angels view points on the issues of SME entrepreneurs and investment aspects. The researcher is confident that this thesis will benefit both the business angels and entrepreneurs. Introduction Of The Research Subjects According to a survey conducted by the (EIRO), the governments Bolton Committee in its 1971 report clarified that there is no single definition to explain Small to medium enterprises because of the wide diversity of businesses that operate in the United Kingdom. The report also explained that small to medium business varies according to the type of sector it operates. However section 249 of the Companies act of 1985 affirms that a small company will have to attribute at least two of the following characteristics; Turnover less than GBP 2.8 million Total balance sheet less than GBP 1.4 million Employees less than 50 And a medium sized entrepreneur should operate under the following regulations; Turnover less than GBP 11.2 million Total balance sheet less than GBP 5.6 million Employees less than 250 However in real practice, business functions that operate under small to medium terms, take on a range of working definitions depending on their business objectives (Leedy Ormfod, 2001). EIRO European Industrial Relations Observatory Formal And Informal Venture Capitalists Venture Capital is also known as risk investment (Langberg, 2004). Risk investment is invested as shares and the financier expects a superior â€Å"rate of return to recompense for the amount of risk invested (Kelly Hay, 2003). There are 2 main types of venture financing in the UK and they are; formal venture capitalists (large financial institutions) and informal venture capitalists (wealthy private investors commonly known as business angels). The UK Formal Venture capitalism began in the 18th century (Harding Bosma, 2007). During that time Entrepreneurs found affluent individuals to get support for their new businesses. This informal tradition of funding eventually formed a business trade by a number of venture capital firms created by many wealthy. Currently there are over 120 venture capital establishments in the UK, which fund billions of cash annually to the UK SME market (Frielinghaus et al., 2005). Informal venture capitalists are mainly recognized as Business Angels who are wealthy individuals with a high class reputation of managing well run businesses (Masson Harrison, 2004). As investors business angels bare a larger risk than venture capital firms as they have to be liable for the loss of the investment incase the business they invest lose out. On the other hand venture capital firms have many investors who can be hand in hand to one another in a bad situation (Masson Harrison, 2004). Business angels are more common in UK where they tend to invest more on SME businesses where banks and venture capital firms decide not to, which will be further discussed under evidence analysis (Madill et al., 2005). Business angels tend to be get more closer to the entrepreneur with a higher level of involvement in the firms operations, which shows that their choice of target firms are somewhat different than venture capital firms requirements and business angels investment decisions are made solely on the basis of the relationship between the entrepreneur and the investor (Masson Harrison, 2002). Although entrepreneurs could use formal informal investors at different stages in the business as shown in the (figure 1), it shows where business angels are needed where we will further discuss later on (Aernoudt, R., 1999). Figure 1: Financial sources and their involving stages Source: (VENTURE CAPITAL, 1999, VOL. 1, NO. 2, 187 – 195) Objectives Understand a business angel, an entrepreneur and their relationship in a SME start-up businesses in UK Identify detailed requirements of business angels when it comes to an investment Determine how different countries cultures undertake investments Literature Review This literature review is concerned about the academic groundwork of the research objectives which inquires about investment categories business angels tend to invest in a small to medium sized business sector. It also looks at how different authors have elucidated about the investment natures of different countries like New Zealand, Denmark, Sweden etc. In order to give a clear structure of this academic review, it will be categorized into subsections to converse different authors views about the research objectives. First the review will discuss about the academic Theories of investments. Then it looks at Business angels and entrepreneurs in the UK. Finally the review will investigate different countries nature of investments in their own markets. 2.1 Theories of Investment There are several investment theories defined and compared by many authors. This thesis mainly focuses on informal investors who wish to invest on SME start-up businesses. Although Stock market related investment theories are irrelevant for our objectives it will be impolite to ignore discussing all investment theories. Therefore lets investigate the theories and in the later chapters discuss the practical concepts (evidence) used currently by successful investors. Among the following theories, Efficient Market Theory will be related to investment in stock listed companies and â€Å"principal-agent, prisoners dilemma framework resource based theory† will be about business angels investing in SME businesses. 2.1.1 Efficient Market Theory (EMT) According to (Burton Malkiel, 1973), the stock values that show in the stock market almost define where the company is in its territory and how well it performs compared to its competitors. He suggests that stock prices may not always be accurate but it can be correct most of the time. On the other hand few business managers disagree, explaining that there companys values are priced unfairly and stock prices do not accurately replicate the performance of their companies (Burton Malkiel, 1973). The following discussion will communicate what efficient market theory is about and explore the arguments against it. According to (Michael Firth, 1975), it is stated that there were many academic researches carried out to monitor the share price behavior by investment advisory firms and investors to obtain profitable investment strategies. What is EMT or EMH? (Burton Malkiel, 1973) explained that Efficient Market Theory (EMT) is also known as Efficient Market Hypothesis (EMH) on a more technical term. This theory is a method of defining how stock values behave the way they do in terms of investment decisions. (Eugene Fama, 1965) later categorized EMH into three sub assumptions and they are as follows; 1. Weak form (EMH) This method assumes that current stock values replicate all past information about the specific company such as performance measurements, returns etc. By analyzing the stocks price chart, it can help the investors verify as to what the future holds for the companys stock values (Eugene Fama, 1965). 2. Semi strong (EMH) The assumption built on this method is that all the publicly available information and historical information replicates the values of a companys stock prices in the market. So the investors could gain more knowledge and confidence through a companys financial statements and recent developments. It will enable the investors to judge the company future performance (Eugene Fama, 1965). 3. Strong form (EMH) This method expressed that, other than publicly available information, the investors get an inside look into the company which largely reflects the stock value (Eugene Fama, 1965). Principal Agent Theory In general terms Principal Agent theory is defined as a business management framework to observe the behavior between employer contractor or employer employees (Spence and Zeckhauser, 1971; Ross, 1973). So here this theory can be applied to the business angel entrepreneur relationship and discuss its implication on the investment process (Jenson and Meckling, 1976; Harris and Raviv, 1978). In the corporate business, the principal (Business angel) usually appoints the agent (manager) or else make sure the entrepreneur works according to the principals ideas in the business (Jenson and Meckling, 1976). The principal usually make sure that the agents business intentions are as similar to him/her (www.financemind.com). In other words, the principal wishes to make sure that the business runs well and succeed the way he/she believes best (Eisenhardt, 1989). But on the other hand, over an informational advantage the agent could think otherwise for the business. This is where the problem of shared risks arises as (Eisenhardt, 1989) explains, where the Investor (principal) and the agent (manager) could end up having different opinions towards the business. The agency theory is widely used in venture capitalism (Bruton, Fried Hisrich, 2000a). Having conflicts due to differences in interests, it is essential to minimize these risks as (Bruton, Fried Hisrich, 2000b) agrees with Eisenhardt. To reduce these risks investors make sure that they actively monitor the companies they invest and build a better and close relationship with each other (Busenitz, Fiet Moesel, 2004). According to (Sweeting Wong, 1997), using a principal agent theory to evaluate a business angel investment is not highly recommended anymore. It is much better to have a mutually agreed relationship. The agency theory shows that money motivates both the principal and the agent (Busenitz, Fiet Moesel, 2004). But financial motivations or economic factors do not relate business angels relationship with the entrepreneur in this theory (Wijbenga et al., 2003). Prisoners Dilemma Framework (PDF) This is yet another theory that can be used in an investment study. In this framework there can be either a conflict or a development between the two parties involved (Cable Shane, 1997). In this theory, both parties can either go in their separate interests and gain a certain pay off or co-operate with each other and achieve a higher pay off (Bruton, Fried Hisrich, 2000). The prisoners dilemma framework promises better fitting for the business angels and the entrepreneurs because it does not presume a hierarchical relationship between the two parties (Bruton, Fried Hisrich, 2000; Cable Shane, 1997). Still the PDF theory only focuses on the investor – entrepreneur relationship and not any of the business angel investment activities or impacts. It concludes that the theory is not suitable enough to define a business angel entrepreneur relationship (Cable Shane, 1997). Resource Based Theory The resource based theory has many influences on the entrepreneurship. Business angels can contribute many resources other than cash it self. According to Freear, Sohl and Wetzet (2002), angel investors can contribute five types of resources to an entrepreneur: Human, physical, social, organizational financial. Human capital can be taken as angel investors contribution of business knowledge, skills and business experience to the firm (Erikson Nerdrum, 2001a). Social capital can be gained when business angels provide their business contacts (Angel networks). By this, the entrepreneur has the opportunity to meet other investors and extend the funding possibilities to the business. Physical resources can be machines or factories and organizational capital can be described as the influence and advice the investors can give for the business for an example making the business improve on its experience (Erikson Nerdrum, 2001b). Financial capital consists of the funding provided in the beginning of the start-up phase (Cassar, 2003). By far this presumed to be the best suited theory to define a relationship between a Business angel and an Entrepreneur where all aspects are covered (Rose, 2005). Summary Of Theories Looking back at the efficient market theory, Agency theory, Prisoners dilemma framework and Resource based theory; it seems to be that the â€Å"Resource based theory† is the most suitable theoretical framework for the Business angel investments. However the Resource based theory has to be amended with few assumptions: Human capital should be taken as the (knowledge, skills business experience) investors contribute with (Ardichvili et al. (2002). Although we discussed the above theories, many researchers have described and tried to apply other similar theories to the investor investee relationship [Example: Procedural Justice (Busenitz, Fiet Moesel, 2004), learning and knowledge-based view (De Clercq Sapienza, 2002), resource exchange theory (Gomez-Mejia, Balkin Welbourne, 1990)]. All the investment theories have a common characteristic that have only a few relevant investment features in them to the investor-investee concept. To make it applicable for the Business angels and entrepreneurs all these theories should have few amendments and adaptations (Sapienza, Manigart Vermeir, 1996). Small And Medium Enterprise (SME) William Kendall, the Chief Executive of Whole Earth Ltd stated, â€Å"SME business is a fantastic place to work. You have to think innovatively to be an entrepreneur. Its thrilling and its enjoyable.† According to (European Industrial Relations Observatory) there is no general definition for SME. But the (Governments Bolton Committee, 1971) cited that the characteristic of a SME firm is a self-sufficient business being owned by a single owner with a small market share. The report also stated that the size of the SME changes in different industries. Although it is hard to give one specific definition for SMEs, it can be measured and classified by numbers (employees revenue rates). The defining measurements are as follows: Definitions: (The Department for Business, Enterprise and Regulatory Reform – BERR, UK) has defined SME with 3 types of measurements and those are based on amount of employees: Micro firms: 0-9 employees; Small firms: 0-49 employees and Medium firms: 50-249. The (European Commission) changed the definition of the SME to increase the partnerships and innovations. The definition which took affect on 2005 is: â€Å" A Micro, Small and Medium-sized enterprise (SME) is made up of firms which employ less than 250 employees and have yearly revenue less than 50 million euro†. Importance Of SME In The Uk The country has raised the level of growth productivity in the last era reducing the competition gap between other countries like US, France Germany (BERR, 2008). Currently UK is reacting well to the global prospects and challenges. The growth of the SME market increases each year promising to boost the economy of the country. According to (European Business Angels Network (2007) Dissemination Report on the Potential for Business Angels Investment and Networks in Europe), the employment and annual revenue contribution of the SME industry as a whole is more than 50 percent of the total. The UK government provides necessary support for people to step up and start their innovative business to increase the competition level of the country (www.berr.gov.uk). The Entrepreneur Earlier it was discussed that previously recognized agency theories explains that the investor, ensuring a healthy relationship is highly regarded as a successful investment aspect in an investment (Kelly Hay, 2003). Therefore exploring more about what authors have studied about entrepreneurs and investors is vital. The difference between a formal venture capitalist and a business angel is that a venture capitalist invests looking at the company and its ability to perform (Schramm, 2004). On the other hand the business angel focuses mostly on the entrepreneur to make sure there can be a good business relationship (Mark and Robinson 2000, p138). The entrepreneur is the only key to get the funding needed for a start-up business. As an entrepreneur, it is vital to gain the investors trust and confidence in the business idea. According to (Osnabrugge Robinson 2000, p123), it is cited that during a business start-up there is a high percentage of entrepreneurs failing to make good management decisions in the initial stages. It is very sensible for an entrepreneur to seek a business angel as they pay special interest on the business they invest in with all their resources including non-financial contributions. It could help fill all the management weaknesses of an initial stage of the business and sav e huge amounts of consulting and managerial costs (Mason and Stark, 2004). Entrepreneur Evaluation (Osnabrugge Robinson, 2000) had explained that entrepreneurs should be aware that the investor not only pays attention on the business proposition but also the entrepreneur himself to ensure the safety, confidence, enthusiasm and the ability to depend on the entrepreneur. Trust is something investors work hard to find in an entrepreneur, because they invest large amounts of financial resources on a person they met in a short period of time (Osnabrugge Robinson 2000, p125). According to a study conducted by Stedler and Peters; entrepreneurs capability to convince the business angel to invest is very important and showed that 81% of business angels has expressed that a positive first impression established in the first meeting as important (Stedler and Peters, 2000). When it comes to angel investment decisions being made, business angels need to ensure that the entrepreneur should be a proficient manager (Gerald and Joel, 2000). Loyalty, leadership, reliability and personality are important characteristics that angel investors look into when they evaluate entrepreneurs. An entrepreneur should be able to have those qualities to gain an influence of the investor (Aernoudt 1999 Sappa 2006). The characteristics that separate a good ownership from a poor is, that if the entrepreneur is able to establish trust and leadership skills with confidence and make the employees follow him/her (Micah Baldwin 2007). Investors find it comforting to know that the entrepreneurs have invested partly on the business before seeking external investment. This gives the investor the idea that the entrepreneur has given all the effort in the involvement of the process and that the financial value of the business is appreciated (Osnabrugge Robinson 2000, p127). According to (Sappa 2006), business angels take lots of time and effort into finding out background information on the entrepreneur to ensure that the owner has the right expertise to manage the business he proposes. (Haines and Riding 1998) corroborates furthermore by adding that the entrepreneur sharing his/her previous business experiences and being much more practical about the business brings more information and confidence to the investor. Finally all the above characteristics that were discussed are very important for a new start-up entrepreneur to influence investments from professional business angels. Business Angels As we have gone through the theories of business angels it is important to know who business angels are in the minds of researchers. A business angel is a highly prosperous individual who can be a business person and willing to invest part of his/hers finance on a promising entrepreneur who has a potential to succeed (Isakssin 2000, Helle 2004). According to (Harrison Manson, 1999), there are three eras of business angel researches conducted in the investment business: First era of business angel research was conducted by United States of America in early 1980s. Authors like; (Landstrom, 1993) from Sweden and (Harrison Manson, 1992) from United Kingdom repeated the same work by giving out similar results. In this era it was solely concentrated on business angels thoughts, activities and characteristics (Freear, Sohl Wetzel, 2002). Second era enabled researchers to go deep into business angels by investigating their post investment involvements. Theory building up and applying for business angels began in this era. Although there were theories built for business angels, it wasnt developed enough to be completely suitable for the activities of angel investors (Connolly et al., 2006). Third era will be the era about the future researches of business angels. There were many faults in the previous researches done and they need to be taken in a new direction to make sure the researches investigated will produce good results (Arenius Minniti, 2005). This would finally make us understand the minds of business angels and match the Business angel – Entrepreneur relationship under changing economy, culture competition (Connolly, OGorman Bogue, 2006). By the help of (Harrison Mason) Swedish researchers like (Sorheim 2005) will enable to investigate on the changing environment of Business angels. This also mean that the theories being found in the previous eras could finally be developed enough to apply on the business angels current investment methods and get positive results (Gompers Lerner, 2007). Characteristics Of Business Angels Almost all the business angels who actively invest on new businesses have few common characteristics. They all have the main motive to increase the potential of their financial capital (Duxbary, Haines Riding 1996). But (Landstrom 1993, Osnabrugge and Robinson 2000) explained that all business angels should not be profiled in a similar way because cultures and person to person could make them different to each others ways in terms of making a personal investment decision. Although there could be many differences between business angels, (Osnabrugge and Robinson, 2000) also stated that there are general motives behind all business angels when it comes to a certain result they expect out of an investment. When Venture capitalists and business angels are taken together it is wide clear that Business angels are individuals who prefer to invest less financial capital than of the formal investors who invest large amounts. Business angels also prefer to invest their money mainly on initial stages of a business (Osnabrugge and Robinson 2000). When it comes to formal investors, they are selective in industries they invest on depending on a lot of information and research. But the Business angels invest on the entrepreneur regardless of what industry sector the business idea would succeed on. They do little research on the industry but heavy research on the entrepreneur they expect to build a trust worthy relationship, because they depend on the entrepreneur mu ch more than the venture capitalists that only rely on the market and the performance of the company (Osnabrugge and Robinson 2000, p63). Furthermore a research conducted in the Norwegian angel market and studies conducted in the US have identified several angel categories. There could be cultural and economical differences among countries like (UK, Sweden Singapore) but angel investors do have likely investment standards in those countries (Landstrom 1993). (Freeny, Haines Riding 1998) explained that the markets which business angels are currently active are where they are wiling to invest more on. There could be many differences in Business angels personalities and points of views of the whole investment process. There are studies that showed the â€Å"most regular business angel†. It is stated that the age, where successful individuals decide to invest their money on a business is when they get to their 50s. This shows that it is almost a retirement phase from a business point of view. This can be confirmed by a research carried out in Germany where it stated that 95% of BAs were male individuals, 56% were directors or owners of their businesses and 17% were individuals who were in the director board on other organizations (Stedler Peters, 2003). Even (Osnabrugge and Robinson 2000, p156) supported Stedler and Peters by explaining that the individuals were in director posts and had good business experiences before they decide to move on into personal investments. Most business angels involve themselves heavily during the initial stages of start-up businesses. They wish to invest near to their homes to make sure of convenience. And Business angels are well educated, wealthy beyond a certain average and expect to have a good life with their feet up on a desk holding a glass of wine, which we all hope to achieve one fine day (Freeny, Haines Riding 1998). Although this thesis aims to look at the characteristics of UK business angels, it was clear by all previous studies that there are common statistics about their decisions and behaviors. This tells us that, UK angel investors too are not far from what was described before in the theories. Still it is important to point out few common characteristics of UK business angels; Common Characteristics Of UK Business Angels According to (Ardichvili et al., 2002), Business angels in the UK have been or still are active business owners. They invest in more similar markets to what they are operating in, which saves them a lot of time trying to understand the market and the operations. Like all business angels, UK investors are highly motivated by the return of their investments and the effort (non financial motives) they have put in to the start-up business. They do enjoy being a part of a new business hoping to succeed for the better part of the community and the country (Landstrom 1993). Furthermore UK business angels prefers and makes sure they invest on new businesses that they could visit regularly, which means they invest in promising firms which will locate geographically near to where they reside (Ardichvili et al., 2002). BAs would rather invest in firms within their residing area, than investing in a location where they find it hard to meet the entrepreneur even though it would double their investments (Harrison, Mason Robson, 2003). Most British angels prefer their entrepreneurs operate within 100 miles of their homes although investors who invested on technological businesses are willing to travel long distances (www.bbaa.org.uk). According to Mason, British angels mostly prefer to invest on small businesses during its initial stages where it is not too late to put in not just their finance sources but their advice and experience to get things on the right track. This, in a way gives them satisfaction of being a part of a promising business (Mason, 2002). After going through the common characteristics of British Angel Investors, it is quite clear that there isnt a major difference compared with the international countries like Sweden and Denmark which will be discussed later. We discussed about Business angels and it is vital to know the categories of their investments. Investment Aspects Of A Business Angel One of the objectives of this thesis is to find out how Business angels in UK and other similar countries decide to invest on a certain investment they find it promising. An investor looking for good reasons to decide on an investment is known as Investment Aspects or Investment Criteria (Landstrom, 1993). It is a way of evaluating the business and the entrepreneur to ensure the security and the profitability of the business proposal. According to the venture capitalism and angel investment comparison carried out by (Osnabrugge Robinson 2000), it revealed that although there were similarities among their attributes in their investment standards there were a certain amount of dissimilarities which makes business angels favorites for a new start up business. For an example, venture capitalists are prepared to invest almost in all stages of a business and therefore they look into all the past and probable financial records of the company. On the other hand the business angels much prefer to invest on a start-up phase of a new business where past financial experiences are not so important to them (Osnabrugge Robinson 2000). Most business angels give similar priorities to investment aspects, when it comes to making a decision. With much researches conducted over the past years (Osnabrugge Robinson 2000) has come up with a selected summary that illustrates the criteria of an investment. The following (Table 1) of twenty-five selective factors are prioritized by well known angel investors; Priority order Priority factors for an investment 1 passion of the industrialist 2 Dependability of the industrialist 3 Sales prospective of the product 4 proficiency of the industrialist 5 Entrepreneur(s) first impression 6 Development prospective of the market 7 Quality of the product 8 Benefits

Uncanny Networks: Dialogues with the Virtual Intelligentsia :: Uncanny Networks Dialogues Virtual Intelligentsia

Uncanny Networks: Dialogues with the Virtual Intelligentsia - Challenging Conceptions of Information Society This book is a collection of thirty-five interviews that examine the various political, ideological, and theoretical opinions of significant media and cultural theorists, critics, artists, and philosophers from the past decade, on the topic of the blurring of distinctions between cultural theory and information. The interviewer, Geert Lovink, is a media theorist, former editor of the new media arts magazine Mediamatic, founder of Nettime mailing lists, the cofounder of the online community server Digital City, and the author of Dark Fiber: Tracking Critical Internet Culture (MIT Press, 2002). According to the Foreword by Joel Slayton, the interview discourse can be roughly grouped into four overlapping ideas: 1) media theory and criticism; 2) sociology, economics, and cultural theory of digital computation, networks, and communications; 3) theoretical ontology relating to an architecture of media; and 4) new media art as information strategy. Topics discussed include cyberspace and the rise of nongovernmental organizations, digital aesthetics, corporate takeover of the Internet, sound art, virtual and urban spaces, navigating deep audio space, theory of the virtual class, European media philosophy, the storage of social movements, the Internet in Eastern Europe, hybrid identities, the mixing of old and new in India, Japanese techno tribes, and critical media studies in the Asia-Pacific, just to name a few. For Lovink, interviews are imaginative texts creating global networked discourses between and among professions, cultures, and social groups. Most of the interviews were done online, allowing the participants to write responses to questions that have both depth and breadth, given that time periods of weeks and months passed before the entire interview with each participant was completed. Many of the interviewees are well-known and unknown artists, critics, theorists, and philosophers worldwide who are building and designing the content, interfaces, and architectures of new media. After the Foreword, the book begins with an interesting self-interview of Geert Lovink himself. A quick snapshot of each interviewee and topics of discussion include: . Dietmar Kamper: disguised form of simulation and authenticity in cyberspace . Norbert Bolz: transformation of media theory into computational theory . Michael Heim: the implication of technological metaphysics . Slavoj Zizek: suspicion of multicultural, neutral, liberal attitudes surrounding nationalist madness . Arthur Kroker: virtual class as predatory capitalists and computer visionaries . Luchezar Boyadjiev: financial sector as the avant-garde in artistic media strategy . Gayatri Spivak: ethics of choice between telematic culture and the reality of a developing state