Tools of the trade
There are numerous web-based tools aimed at entrepreneurs and designed to help in the generation of and documenting of business ideas. A review by researchers from Finland and Austria suggests that such tools can be helpful in the initial phase of entrepreneurial activities. Fundamentally, different tools work in different ways in allowing the most to be made of creativity, also known as divergent thinking, a person’s ability to create novel, unique, and beneficial solutions to address a given problem. While the creative potential of an individual is limited, crowdsourcing represents an option for obtaining more ideas, thus maximising creative capacity, which is where web-based tools are abundantly useful. One of the markers of a truly useful and successful tool is that it brings people together effectively. However, the team concedes, digital tools for idea generation are no panacea for being successful in finding the key idea that will lead to business success. Sometimes an entrepreneur simply needs a bright spark to ignite the flame of business success.
Fellnhofer, K. and Pree, W. (2018) ‘Let’s generate ideas – a review of web-based crowd sourcing tools for the basis of entrepreneurship’, J. International Business and Entrepreneurship Development, Vol. 11, No. 2, pp.96–117
Spin-off games
Italian researchers have investigated the interpersonal conflicts that arise in academic spin-off companies as a result of the differences in agenda of those who back such ventures financially, the venture capitalists and the entrepreneurial team. Indeed VC and ET working synergistically together would be the ideal situation in such a spin-off and lead to the greatest success. Unfortunately, each inevitably has conflicting interests that can play against each other and even stymie successful development of the business plan, and ultimately affect the bottom line profitability. Game theory, the team suggests, can reduce the detrimental effects of such conflicts of interest between VC and ET and boost the chances of an academic spin-off with external financing.
Vesperi, W. (2017) ‘The conflict in the academic spinoff: the game theory approach’, Int. J. Research, Innovation and Commercialisation, Vol. 1, No. 2, pp.191–204
Radio hotel
Radio frequency identification (RFID) technology is a useful tool in a variety of areas such as retail and warehousing, but is also now gradually reaching the hospitality setting where it might make hotels and other such facilities more efficient. The adoption of RFID technology by the hospitality industry in the developing world has now been investigated by researchers from Iran. They have now developed an integrated model of the adoption of RFID technology to help researchers understand how the technology is being implemented and to qualify and quantify the pros and cons as they emerge in the service sector.
Khazaei Pool, J., Doosti, S., Tabaeeian, R.A. and Mortazavi, M. (2018) ‘An integrated model of the adoption of radio frequency identification technology in the hotel industry’, Int. J. Value Chain Management, Vol. 9, No. 1, pp.89–103.
Ponzi pyramids
Ponzi schemes have been around for decades, if not centuries, and are well known. It is a fraudulent investment scheme whereby the fraudster fabricates reports and generates returns for early investors through capital invested later by new investors, rather than from actual business activities that generate profits. Fictional Ponzi schemes exist in the work of Victorian author Charles Dickens and are exemplified by real-life Victorian fraudster Sarah Howe who ran the “Ladies Deposit” in 1880s Boston and then by Charles Ponzi who became notorious for using the technique in the 1920s across North America. Tony Tinker warned of the ongoing “success” of modern-day Ponzi schemes several decades ago and yet companies and individuals to this day imagine that they are above the law and still sustain their wealth lifestyle by subverting genuine business through this deception.
Tinker, T., Afolabi, A., Derbali, A. and Sy, A. (2018) ‘Ponzi schemes and California pyramids Ponzi schemes and Home-Stake’, Int. J. Critical Accounting, Vol. 10, No. 1, pp.1–14.