Small business developement & financing in the Dutch sport industry
how do small businesses in the sport industry exploit opportunities and finance their business model in order to develop their organization?
In this study the author aims to investigate the way that businesses in the sport industry exploit opportunities and finance their business model in order to develop their organization, by proposing an extended version of the Dynamic States model of Levie & Lichtenstein (2010). It was found that this approach is indeed a good way to analyse growth of businesses in the sport industry and that those entrepreneurs do not solely base their decisions on economic principles. When making financing decisions, the pecking order theory also holds for entrepreneurs in the sport industry but traditional finance sequences are proven to be out-dated. It was also found that because of the immaturity of the sport sector, entrepreneurs have a hard time to find good external investors and because of the many niches in this industry, they have to come up with creative profit formulas in their business model. This research is concluded by giving various practical recommendations and interesting discussions points.