Business Forum Vol 27 Issue 2

Abstract:

Research has shown that the formation, attributes, and success of entrepreneurship are region-specific. Thus, this study examines the characteristics of startups in Los Angeles. In particular, we look at startups’ general business area, operating status, funding history, and key corporate actions. We also review these characteristics within the national and state context. Recommendations to entrepreneurs and investors are made based on our findings.

Abstract:

In a 2017 Kauffman Index of Startup Activity report, California is ranked as the number one state for startup activity and Los Angeles is ranked as one of the high-performing metropolitan cities in the entrepreneurship ecosystem. However, in 2018, Los Angeles experienced a drop by three spots in its ranking on Startup Genome’s global startup ecosystem list. In our research study, we shed light on the main characteristics of nascent entrepreneurs in the Los Angeles area and, more importantly, the individual and environmental factors that help or inhibit the growth of their startups. We conclude the article with practical implications and recommendations for Los Angeles city government agencies and legislators.

Abstract:

This study reflects upon the need for small and medium-sized enterprises (SMEs) in pharma–nutraceuticals to embrace business intelligence (BI) data analysis. SMEs in this field can best establish themselves as international SMEs and when a company first enters the market, it should be “born global” and have direct interactions with the global market, all while embracing the use of BI. Taking the case of the Swedish company MediTec International FairLife Group, this study examines how startup pharmaceutical SMEs in the United States and Europe can enter a market by taking a “born global” perspective that leverages online facilities.

Abstract:

With recreational cannabis now legal in ten US states, illegal cannabis growing operations are increasingly being replaced with regulated, taxed, and licensed businesses. Sales are predicted to increase roughly 35% from 2017, to more than $8 billion by the end of 2018, and to $22 billion by 2022. Projections like these have contributed to a startup boom in the cannabis industry unseen since the tech boom of the late 1990s. The aim of this paper is to highlight the unique issues faced by startups in the cannabis industry. We examine the elements that influence the cannabis startups by using the PESTLE framework which includes political, economic, social, technological, legal and ecological factors. We identify three types of cannabis startups and provide a brief analysis of differences between them as well as the challenges that they all face.

Abstract:

Agile development methods have become very popular, specifically with software startups. Extant literature does not emphasize the decision-making processes of agile developers, particularly in startups. The goal of this research is to propose a framework where startup developers make these decisions and how those processes align with customer needs.

Abstract:

What business entity the owners of a startup business choose will determine the tax and non-tax consequences for both the owners and the startup. However, by understanding the similarities and differences of business entities, owners can choose the best business structure for their startup business. As an aid in the process of choosing a business entity for a startup, this paper provides an overview of the rules, requirements, advantages, and disadvantages of several business entities.

Abstract:

This paper examines the accounting and financial aspects of startup companies. Because startup companies have shorter histories of past performance, both managers and investors face more uncertainty regarding future profitability and growth potential. For this study, we collect data from U.S. firms for 1991-2015 to determine whether firms in their early stages report different financial characteristics than those reported by mature firms. Test results show that current cash flows from operating activities are less persistent in the prediction of one-year- ahead earnings for early-stage firms than for mature firms. The firm's financing capacity is more positively associated with future earnings for early-stage firms. From the stock price-to-book value of the equity ratio, we find that research and development expenses are valued less for early-stage firms. The findings of this paper suggest that the managers of startup companies need to consider such differences in their planning for future operations.