Sustainable Investments in Responsible SMEs: That’s What’s Distinguish Government VCs from Private VCs

Jeaneth Johansson*, Malin Malmström, Joakim Wincent

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

6 Citations (Scopus)

Abstract

Researchers question the impact of governmental venture capitalists (GVC) compared to private venture capitalists (PVC), but we know little about why this difference occurs and if this criticism is justified. We observed a group of GVCs and developed a new model that describes the way that GVCs process signals pre- and post-decisions. Certain macro level factors severely undermine micro level performance, causing GVCs to financially underperform with respect to PVCs. This helped us to understand that GVCs do not make investment decisions in the same way as PVCs, and what undermines the performance of GVCs’ decision-making processes. The main goals of GVCs are to promote investments in responsible SMEs, mobilizing societal impact. We discuss that the criticism of GVC needs to be more nuanced, as they have a different role than PVC in the financial system as providers of sustainable investments in responsible SMEs
Original languageEnglish
Peer-reviewed scientific journalJournal of Risk and Financial Management
Volume14
Issue number1
Pages (from-to)25
Number of pages22
ISSN1911-8066
DOIs
Publication statusPublished - 06.01.2021
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • sustainable investments
  • entrepreneurial finance
  • government venture capital
  • private venture capital
  • responsible ventures
  • decision-making

Areas of Strength and Areas of High Potential (AoS and AoHP)

  • AoHP: Strategic and entrepreneurial praxis

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