Board Architecture and Entrepreneur Companies

Abstract

This chapter analyzes the development of the entrepreneur company and the affect that this has on board architecture. Some entrepreneur companies may evolve into family companies if succession is handled smoothly. These companies will be analyzed in the next chapter. In this chapter our study of the development of entrepreneur companies will include how board architecture needs to change as the entrepreneur confronts the three crises identified by Mueller:

• (1) the crisis of finding the founding owner’s successors,

• (2) the crisis of reorganization under the new leadership, and

• (3) the crisis of the original owners and principals letting go of their dominant hold on the enterprise. (Mueller: 84)