Selecting start-up businesses in a public Venture capital financing using Fuzzy PROMETHEE

Public Venture Capital financing often fail rigorous scrutiny in their selection of high-potential start-ups as compared to Private Venture capital. In some developing countries, decision making on final selection for financial support of early stage but high potential Small and Medium sized Enterprises (SMEs) are often 'clouded' by several factors including consideration of political party affiliations. This results in low capital recovery rate and a mischance in choosing deserving start-ups. This paper applies Fuzzy Preference Ranking Organization METHod for Enrichment Evaluation (Fuzzy PROMETHEE) method to evaluate and select early-stage but high potential start-up businesses in a government high priority area such as in Information and Communications Technology. A numerical example with pre-defined linguistic terms parameterized by triangular fuzzy numbers is provided. The framework could serve as a useful tool for decision makers in scrutinizing selection of start-ups in other government priority areas. © 2015 The Authors. Published by Elsevier B.V.MSMT-7778/2014, NPU, Northwestern Polytechnical Universit

Group decision-making models for venture capitalists: the PROMETHEE with hesitant fuzzy linguistic information

Venture capitalists (VCs) have long been preoccupied by the issue of selecting a promising start-up firm, whereas, ranking the available start-up firms is an effective way to solve this issue. In this paper, the PROMETHEE is chosen to be the fundamental ranking method. Also, the hesitant fuzzy linguistic term set is a suitable tool to simulate VCs’ evaluation information. Additionally, as the deepening of social division of labor and specialization of individuals, group decision making is famous for improving decision-making quality. Moreover, in the decision-making process, VCs exhibit behavioral characteristics which is depicted well by prospect theory that VCs are risk averse for gains and risk seeking for losses and rely on the transformed probability to make their decisions rather than unidimensional probability. Thus, a group prospect PROMETHEE with hesitant fuzzy linguistic information is constructed for VCs to make a better decision. Then, the proposed method is applied to rank start-up firms and the comparative analyses are made as well. It confirms that the group prospect PROMETHEE is better in describing the common behavioral characteristics of VCs and in enhancing the quality of evaluation

Project Finance and MCDM financial models: An application in renewable energy projects

Tesis por compendio[EN] Academics, managerial and policy making community reinforce that renewable energy investments are one of the most effective instruments to attain CO2 emission reduction targets set by the Kyoto Protocol and by the recent Paris Agreement signed at the Paris climate conference (COP21) in December 2015 in which 195 countries adopted the first-ever universal, legally binding global climate deal. The problem of financing Renewable Energy (RE) projects has become a crucial issue for private and public decision makers worldwide. Budget constraints from governments and limited bank lending capacities have led to a reconsideration of the traditional financial instruments in the RE sector. The lack of credit makes impossible for commercial banks to fund RE projects with traditional loans. Research on new financing techniques for RE projects, such as Project Finance (PF) has gained interest in recent years. PF is a recent technique applied in large investments projects. During the last decades of the 20th century new public private partnership schemes enabled large infrastructure, energy and environmental projects. In these sectors PF has been used to reduce cost agency conflicts and better risk management. There is a wide number of contributions underlying the relevance of RE, however there is a lack of research on the financial aspects of RE projects. This research aims to make several contributions. First, to provide a better understanding of the PF technique and its use in the RE sector. Second, to fill the gap of research on financial aspects of RE in the literature by reviewing contributions of MCDM to RE project evaluation from the investor's perspective. Third, we propose a MPDM Moderate Pessimism Decision Making model, which adds to the rational financial evaluation of investment opportunities a set of non-financial factors that affects the investor's decisions. Finally, within the illustrative example, we apply this multi-criteria decision making process to help banks to decide if they must join a project or not.[ES] Investigadores, comunidad empresarial y clase política destacan que la inversión en energías renovables es uno de los instrumentos más efectivos para alcanzar los objetivos de reducción de CO2 establecidos por el reciente acuerdo firmado en la conferencia de Paris (COP21) en diciembre de 2015, en el cual, 195 países adoptaron el primer acuerdo universal y jurídicamente vinculante de la historia. El problema de la financiación de los proyectos de energía renovable (RE) es un tema crucial para cualquier decisor público o privado. Las limitaciones presupuestarias de los gobiernos y la falta de crédito han provocado que se reconsideren los instrumentos de financiación en el sector de las RE, por lo tanto, la investigación en nuevas técnicas de financiamiento para los proyectos de RE, como Project Finance (PF) ha ganado interés en los últimos años. PF es una técnica que se aplica en grandes proyectos de inversión. A finales del Siglo XX, los nuevos esquemas de colaboración público-privadas han permitido llevar a cabo grandes proyectos de infraestructuras y de RE. En estos sectores, el PF se ha utilizado para reducir costes, conflictos y mitigar riesgos. Numerosas contribuciones científicas subrayan la importancia de la RE, sin embargo hay un vacío en la investigación sobre los aspectos financieros de los proyectos de RE. Esta tesis tiene como objetivo aportar varias contribuciones. En primer lugar, proporcionar una mejor comprensión de la técnica del PF y su uso en el sector de las RE. En segundo lugar, cubrir el vacío existente en la literatura sobre la investigación de los aspectos financieros de las RE mediante la revisión de las contribuciones sobre MCDM para la evaluación de los proyectos de RE desde el punto de vista del inversor. En tercer lugar, se propone un modelo MPDM (Moderate Pessimism Decision Making), el cual añade a la evaluación financiera racional de oportunidades de inversión, un conjunto de factores no financieros que afectan a las decisiones de los inversores. Finalmente, se aplica este modelo multicriterio de toma de decisiones para ayudar a decidir a los bancos si deben unirse al proyecto.[CA] Investigadors, comunitat empresarial i classe política, destaquen que la inversió en energies renovables és un dels instruments més efectius per assolir els objectius de reducció de les emissions de CO2 establerts pel recent acord signat a la conferència de Paris (COP21) al desembre de 2015, mitjançant el qual, 195 països van adoptar el primer acord universal i jurídicament vinculant de la història. El problema del finançament dels projectes d'energia renovable (RE) s'ha convertit en un tema crucial per a qualsevol decisor públics i privats. Les limitacions pressupostàries dels governs i La falta de crèdit han provocat que es reconsiderin els instruments de finançament en el sector de les RE, per tant, la investigació en noves tècniques de finançament per als projectes de RE, com el Project Finance (PF) ha guanyat interès en els últims anys. PF és una tècnica que s'aplica en grans projectes d'inversió. Durant les últimes dècades del Segle XX, els nous esquemes de col-laboració publico-privades han permès portar a terme grans projectes d'infraestructures i de RE. En aquests sectors, el PF s'ha utilitzat per reduir costos, conflictes i gestionar millor els riscos. Existeixen nombroses contribucions científiques que subratllen la importància de la RE, però hi ha un buit en la investigació pel que fa als aspectes financers dels projectes de RE. Aquesta tesis té com a objectiu aportar diverses contribucions. En primer lloc, proporcionar una millor comprensió de la tècnica del PF i el seu ús en el sector de les RE. En segon lloc, cobrir el buit existent en la literatura sobre la investigació dels aspectes financers de les RE mitjançant la revisió de les contribucions sobre MCDM per a l'avaluació dels projectes de RE des del punt de vista de l'inversor. En tercer lloc, es proposa un model MPDM Moderate Pessimism Decision Making, que afegeix a l'avaluació financera racional d'oportunitats d'inversió, un conjunt de factors no financers que afecten les decisions dels inversors. Finalment, mitjançant un exemple il-lustratiu, s'aplica aquest model multicriteri de presa de decisions per ajudar a decidir als bancs si han de unir-se al projecte.Mayor Vitoria, F. (2016). Project Finance and MCDM financial models: An application in renewable energy projects [Tesis doctoral no publicada]. Universitat Politècnica de València. https://doi.org/10.4995/Thesis/10251/73067TESISCompendi

INTRODUCTION TO THE VISEGRAD FUND PROJECT: HOW TO PREVENT SMEs FROM FAILURE (Actions based on comparative analysis in Visegrad countries and Serbia)

This issue of Serbian Journal of Management (SJM 14(2) 2019), is dedicated to one very important challenge of contemporary entrepreneurship, that is condensed in single question: How to prevent SMEs from failure ? The articles published in this issue are all addressing different aspects of entrepreneurial activities that can lead to successful and/or unsuccessful operations. Part of the articles pubished in this issue are directly presenting the results of the project: HOW TO PREVENT SMEs FROM FAILURE (Actions based on comparative analysis in Visegrad countries and Serbia), which was financially supported by the International Visegrad Fund. During the projects, researchers from all four Visegrad group countries, as well as researchers from Serbia, were analysing SMEs from their regions, which suffered from some degree of financial distress or have failed in the past. The main purpose of this investigation was to analyse and identify the most important business factors that can lead to failure of the SMEs businesses. Obtained results are presented in this issue. On the other hand, part of the manuscripts in this issue are invited from the authors who are also investigating the SMEs operation and are dealing the factors of success of the entrepreneurial activities, in the region outside Visegrad group or Serbia. The main motive of this issue is to address this highly important challenge - SMEs successful operations

Multi criteria decision making for assisting business angels in investments

The roles of business angels (BAs) are especially important in view of both decreasing the levels of formal venture capital investment and growing the average amount of individual deals. Angel investors typically invest at an earlier stage of growth and provide more business guidance than venture capital providers. Therefore, angel investors are the key players in generating high-growth companies, essential to regional economic development. As a result, they have attracted the attention of policy makers. Thus, this research attempted to improve the conception of decision-making criteria used by the BAs for investment, and reports the findings of an exploratory project that analysed the Malaysian BAs’ decision-making process. A hierarchy of multiple criteria decision making (MCDM) model based on fuzzy sets theory and VIKOR (in Serbian: Vise Kriterijumska Optimizacija I Kompromisno Resenje) method were proposed in order to look into the decision making process. For this reason, 5 main criteria and 29 sub criteria were developed to be evaluated by 5 well-known BAs to assess and rate the criteria and alternatives using fuzzy linguistic variables. For the purpose of illustration, an empirical case study was conducted on Malaysian BAs and the results are presented with numerical examples. The final finding of the research suggested that Johor is the most suitable city for investment. Kuala Lumpur, Penang, and Sabahare placed in the subsequent ranks. The proposed framework had been successfully applied for the decision making process, and could be used by other BAs for their cases with slight modifications

An Evaluation of the Effectiveness of Innovation Ecosystems in Facilitating the Adoption of Sustainable Entrepreneurship

Sustainable entrepreneurship has a substantial role of a steadily growing economy and advanced industrial economies. Several strategies have been formed and employed to support the adoption of innovation and technologies in the sustainable entrepreneurship sector. However, the successful outcome of these strategies in achieving their goals depends on how effective they are in satisfying their objectives and thus increasing innovation adoption. One measurement for effectiveness of ecosystem implements can be their support to the input of the process of innovation and technologies adoption and their impact on satisfying regional goals. The objective of this research is evaluating the effectiveness of innovation ecosystem instruments on increasing the adoption of innovation in sustainable entrepreneurship by developing a comprehensive assessment decision model. Strategy targets used in this assessment depend on five perspectives that are perceived by decision makers as important for the adoption process. The decision model linked the perspectives to ecosystem targets and various innovation ecosystem instruments. These perspectives are economic, environmental, social, technical, and ethical. The research implemented the hierarchical decision model (HDM) to construct a generalized ecosystem assessment framework. The HDM model has the ability to be generalizable and can utilize in different regions. Also, in this research, the desirability curves methodology is implemented. This methodology will help the researcher in the future to consider any additional alternatives. As it is mentioned before, Desirability Curve describes how desirable a certain assessment variable is for the decision-maker according to expert judgments. Finally, two case studies were conducted to demonstrate the practicality of this assessment model. The model pointed to the weakness and strengths of Saudi Arabia\u27s and China\u27s Innovation Ecosystem in facilitating the adoption of sustainable entrepreneurship along with providing recommendations for areas of improvement based on desirability curves

Analisis performa mata uang virtual (Cryptocurrency) menggunakan metode preference ranking organization method for enrichment evaluation (PROMETHEE)

Mata uang virtual termasuk penemuan yang membuat heboh bidang ekonomi akhir-akhir ini. Karena dalam penggunaanya masih terdapat pro dan kontra dari berbagai negara. Terdapat beberapa negara yang dengan jelas menolak penggunaan mata uang virtual dan beberapa lainnya mendukung penggunaan mata uang virtual, karena dianggap sebagai modernisasi alat pembayaran. Selain digunakan untuk alat pembayaran, mata uang virtual juga dapat dijadikan salah satu pilihan untuk berinvestasi. Banyaknya mata uang virtual yang ada menyebabkan investor harus jeli dalam menentukan pilihan dengan tepat. Pada penelitian ini digunakan metode promethee I dan II untuk menentukan ranking 7 mata uang vitual. Promethee I merupakan metode penilaian secara parsial sedangkan Promethee II merupakan metode penilaian secara utuh. Data yang digunakan untuk perankingan didapat dari kuisioner "sentimen terhadap performa mata uang virtual (cryptocurrency)". Hasil analisis performa mata uang virtual menunjukkan bahwa komoditi investasi dari yang paling direkomendasikan berturut-turut adalah Bitcoin dengan nilai net flow sebesar 0.33267, Cardano 0.14267, Ethereum 0.04800, Ripple 0.04733, Stellar -0.04733, Litecoin -0.04767 dan Dogecoin -0.47567

Strategies for sustainable socio-economic development and mechanisms their implementation in the global dimension

The authors of the book have come to the conclusion that it is necessary to effectively use modern approaches to developing and implementation strategies of sustainable socio-economic development in order to increase efficiency and competitiveness of economic entities. Basic research focuses on economic diagnostics of socio-economic potential and financial results of economic entities, transition period in the economy of individual countries and ensuring their competitiveness, assessment of educational processes and knowledge management. The research results have been implemented in the different models and strategies of supply and logistics management, development of non-profit organizations, competitiveness of tourism and transport, financing strategies for small and medium-sized enterprises, cross-border cooperation. The results of the study can be used in decision-making at the level the economic entities in different areas of activity and organizational-legal forms of ownership, ministries and departments that promote of development the economic entities on the basis of models and strategies for sustainable socio-economic development. The results can also be used by students and young scientists in modern concepts and mechanisms for management of sustainable socio-economic development of economic entities in the condition of global economic transformations and challenges