Index – Founders

agreements, 60–61

buy-sell, 72–73, 86–87, 90–93

drafting, 76–77

employment, 61–62, 75

innovations, 62–64

new corporation, 77–80

noncompetition, 65–66

nonsolicitation, 65–66

option, 66–67

shareholders, 75–77, 82–85

voting/pooling, 81–83

ambiguity, tolerance for, 7–8

arbitration clauses, 85–86

attachment, dimension, 100

autocracy model, 104

autonomy and responsibility, 46

Bandura, A., 9

board composition, 135–136

bureaucracy model, 103

business

existing, 48–50

launching new, 44–46 (see also entrepreneur, role of)

ownership (see business
ownership)

business ownership

autonomy and responsibility, 46

community involvement, 47

earnings potential, 46

financial risk, 48

job security, 47

resources, 48

skill development, 47

supervisory and mentoring opportunities, 47

time commitment, 48

buy–sell agreement, 86–87

events, 92–93

forms of, 90–91

restrict, 72–73

“call” right, 90

career experience and functional background, 130–133

Cauthorn, R. C., 22, 37

commitment model, 103

committing resources, 29–30

community involvement, 47

compensation and reward policies, 33–34

control of resources, 30–32

co-sale agreements restrict, 73

crosspurchase agreement, 91–92

dilemmas, 50–56

disclosure, 59–60

drive, 11

duty, current and former employers, 58–59

earnings potential, 46

egoistic passion, 11–12

election of directors, 83–84

employment agreement, 61–62, 75

employment relations model

autocracy, 104

bureaucracy, 103

commitment, 103

engineering, 102

on firm evolution, 107–109

selection of, 105–107

star, 102–103

engineering model, 102

entrepreneur, role of, 17–18

committing resources, 29–30

compensation and reward policies, 33–34

control of resources, 30–32

management structure, 32–33

in new organizations, 19–21

philosophies of management, 21–23

strategic orientation, 24–27

strength and speed of commitment, 27–29

entrepreneurship, 1–2

drive, 11

egoistic passion, 11–12

independence, 10–11

locus of control, 8–9

motivational traits and effect, 2–4

need for achievement, 4–5

research and suggestions, 12–15

risk taking, 5–7

self-efficacy, 9–10

tolerance for ambiguity, 7–8

equity financing, demand for, 137–138

ethical and professional considerations, 88–89

existing business, 48–50

financial management skills, 41

financial risk, 48

Gartner, W. B., 1, 12, 14–15, 17–18, 19, 21

human resource skills, 41

hybrid agreement, 92

independence, 10–11

initial public offering (IPO), 116, 123–129

age, 133–134

board composition, 135–136

board member, 140–141

career experience and functional background, 130–133

equity financing, demand for, 137–138

leadership at, 129–130

outside blockholder ownership, 136–137

size of founding team, 134–135

top management team, 136

venture capital participation, 138–140

innovations agreement, 62–64

Isenberg, D., 43–44

Jain, B., 124, 128–130, 132–139

job security, 47

Joseph A., 35–36

Kirzner, I.M., 37

launching new business, 44–46. See also entrepreneur, role of

locus of control, 8–9

management

of new business, 73–75

philosophies of, 21–23

structure, 32–33

managerial intensity, 112

mandatory obligation, 90

McClelland, D., 4–5

Miller, B., 116

Mintzberg, H., 19

motivational traits and effect, 2–4

need for achievement (nAch), 4–5

negotiation considerations, 87–88

new corporation agreement, 77–80

new organizations, 19–21

noncompetition agreement, 65–66

nondisclosure, 62–64

nonsolicitation agreement, 65–66

opportunistic behavior, 24–25

option agreement, 66–67

organizational and management skills, 41–42

organizational culture, 95–97

blueprint, 99–101

cultural elements, 97–98

design, 110–115

employment relations (see employment relations model)

networks, 115–118

and professional managers, 118–122

Stanford Project on Emerging Companies, 99

organizational structure, 100–101

outside blockholder ownership, 136–137

ownership interests, 70–72

personality traits, 35–38

philosophies of management, 21–23

pooling agreement. See voting

professional managers, 118–122

promoter-type orientation, 33–34

purchaser, 91–92

“put” right, 90

redemption agreement, 91

relationships, 69–70

research and suggestions, 12–15

resolution procedures, 85–86

resources, 30–32, 48

restrictions, 72–73

return of property, 60

right of first refusal restrict, 72

risk taking, 5–7

sales and marketing skills, 39–40

Sarasvathy, S., 25–26

scale-up entrepreneur, 43–44

Schein, E., 95–98, 118–122

Schumpeter, J. A., 35–37

Scott, W., 112

self-efficacy, 9–10

Shane, S., 12, 14

Shapero, A., 37

shareholders agreement, 75–77, 82–83

and election of directors, 83–84

shareholders voting arrangement, 80–81

skill development, 47

skills inventory, 38–39

financial management, 41

human resource, 41

organizational and management, 41–42

sales and marketing, 39–40

stress management, 42–44

Sokol, L., 37

Stanford Project on Emerging Companies (SPEC), 99

star model, 102–103

stock purchase, 66–67

strategic orientation, 24–27

strength and speed of commitment, 27–29

stress management skills, 42–44

supermajority shareholder quorum, 84–85

supervisory and mentoring opportunities, 47

Tabak, F., 124, 128–130,
132–139

The Theory of Economic Development (Joseph), 35–36

time commitment, 48

tolerance for ambiguity, 7–8

top management team (TMT), 136

transfer restrictions, 72–73

trustee-type orientation, 34

Van de Ven, A. H., 18

venture capital participation,
138–140

voluntary lifetime transfers, 89–90

voting

arrangement, 74, 80–83

requirement, 84–85

Wall Street Journal, 39

Wasserman, N., 50–56, 123, 125, 127–129, 140–141

Weber, M., 110