BSc, MBA, CPA, CA, CMC, PhD*
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CFOs in a High-Growth Entrepreneurial Ventures
The importance of financial management capability to new ventures has been documented, but managing this critical role in high-growth new ventures (‘HGEVs’) has not been addressed in the literature, except in family firms and large corporations. For example, HGEVs typically require significant amounts of financial capital to fund innovation, product/service development, and negative operating cash flows during the initial phases of commercialization. That capital also needs to be deployed effectively and efficiently (due to its scarcity and cost) in support of achieving the venture’s goals & objectives. Thus, the financial management needs of HGEVs require something more than basic competencies. These are itemized in my dissertation (§8.1-8.2).
The topic of financial management in high-growth entrepreneurial ventures is neither covered or well understood. The reason for the lack of coverage may be due to a focused interest by researchers on entrepreneurs and the activities they engage in as opposed to other members of the management team. The reason research about financial management may not be well understood may be because a financial management lens perspective has not been previously used in this domain.
Consequently, no literature was identified that investigated the differential competencies, social capital, personal or other characteristics of CFOs or QFMs in growth-oriented entrepreneurial ventures in comparison to CFOs in established organizations.
(I will update this in 2024 with a more meaningful treatise of the expectations and roles of CFOs in the HGEV context).
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