Skip to main content

The Root: Why Competence has Value

  • Chapter
  • First Online:
The Financial Value of Entrepreneurship
  • 649 Accesses

Abstract

Financial markets may set the price for assets, but an enduring economic performance is generated from having the right skills. Although everybody agrees on the existence of the value of human capabilities, financial practice troubles to detect it in full. The question this book tries to solve is: How can you use the tools of financial evaluation to side your intuition when investing in entrepreneurial business and competence growth? The solution proposed is based on the concept of human skills as a productive factor, contributing to business economics. In the case of Entrepreneurial Businesses, skills contribution to corporate performance is a key driver but pullulates from the entrepreneur so that her/his productivity is strongly joined to that of the capital employed into the company.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 59.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Bibliography

  • Allen, D., and Gale, F. Financial Innovation and Risk Sharing. Cambridge, Massachusetts: MIT Press, 1994.

    Google Scholar 

  • Baumol, W.J. Formal entrepreneurship theory in economics: Existence and bounds, in Journal of Business Venturing, 8(3), 197–210, (1993).

    Article  Google Scholar 

  • Bini, M, and Guatri, L. Impairment. Milano: Egea, 2003.

    Google Scholar 

  • Copeland T.E., Weston J.F., Financial Theory and Corporate Policy. Addison-Welsey Publishing Co., Reading, MA, 1988.

    Google Scholar 

  • Covin, J.G., and Slevin, D.P.A conceptual model of entrepreneurship as firm behaviour, in Entrepreneurship Theory and Practice, 16, 7–25, (1991).

    Google Scholar 

  • Hisrich, R.D., and Kearney, C. Corporate Entrepreneurship. New York: McGraw-Hill, 2012.

    Google Scholar 

  • Mantovani, G.M. The information risk drivers. A long-term analysis to support a risk premia modelling, in Quarterly Journal of Finance and Accounting, 50, 145–199, (2012).

    Google Scholar 

  • Mill J.S., Principle of Political Economy with Some of their Applications to Social Philosophy. London: Longman, 1948.

    Google Scholar 

  • Modigliani, F., and Miller, M.H. The cost of capital, corporation finance and the theory of investment, in American Economic Review, 48, 261–297, (1958).

    Google Scholar 

  • Orser, B., Cedzynski, M., and Roland, T. Modelling owner experience: Linking theory and practice, in Journal of Small Business and Entrepreneurship, 20, 4, 387–408, (2007).

    Article  Google Scholar 

  • Reuber, A., and Fischer, E. Understanding the consequences of founders’ experience, in Journal of Small Business Management, 37(2), 30–46, (1999).

    Google Scholar 

  • Rullani, E. Economia della conoscenza: creatività e valore nel capitalismo delle reti. Rome: Carocci Editore, 2004.

    Google Scholar 

  • Salim, Ruhul Amin. Modelling entrepreneurship in small-scale enterprises, in Applied Economics Letters, 12, (2005), 51–57.

    Article  Google Scholar 

  • Williamson, O.E., and Masten, E.S. The Economics of Transaction Costs. Cheltenham, UK and Northampton, MA: Elgar, 1999.

    Google Scholar 

  • Zahra, S.A., and Covin, J. Contextual influence on the corporate entrepreneurship – performance relationship: A longitudinal analysis, in Journal of Business Venturing, 10, 43–58, (1995).

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Copyright information

© 2017 The Author(s)

About this chapter

Cite this chapter

Mantovani, G.M. (2017). The Root: Why Competence has Value. In: The Financial Value of Entrepreneurship. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-36537-8_1

Download citation

  • DOI: https://doi.org/10.1057/978-1-137-36537-8_1

  • Published:

  • Publisher Name: Palgrave Macmillan, New York

  • Print ISBN: 978-1-137-39149-0

  • Online ISBN: 978-1-137-36537-8

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics