Providing an Optimal Financing Model of Entrepreneurship Through Acquisition (ETA) Perspective of Entrepreneurs and Investors Using Data Envelopment Analysis (DEA)

Subject Areas : Financial engineering

Maryam Amiri ¹ , Mohsen Rostamy-Maslkhalifeh ² , Afsaneh Zamani Moghadam ³

1 - Department of Finance, Sciences and Research branch, Islamic Azad University, Tehran, Iran
2 - Department of Applied Mathematics, Sciences and Research branch, Islamic Azad University, Tehran, Iran
3 - Department of Educational Management, Sciences and Research branch, Islamic Azad University, Tehran, Iran

Received: 2021-09-13 Accepted : 2021-11-23 Published : 2022-06-22

Keywords: Data envelopment analysis, "Efficiency, Entrepreneurship Financing, Entrepreneurship Through Acquisition models, Search Fund model",

Abstract :

In the past, attempts have been made to conceptualize all purchases based on the LBO model and through the lens of agency theory. This view of the past has severely limited the ability of financial engineers to create models and tools for entrepreneurship motivation. ETA is a window to revitalize businesses by acquiring small businesses with entrepreneurial capacity instead of starting a start-up business.In this study, according to behavioral, financial, economic, social, and legal indicators, the efficiency degree of entrepreneurship through acquisition models using the non-parametric method of data envelopment analysis based on output-oriented BCC and CCR models from the entrepreneurs and investors' perspectives in the Iranian market. We have demonstrated a comprehensive ranking of the models based on the Anderson and Peterson (A&P) model finally.The results show that based on the output-oriented BCC and CCR models, the crowdfunding model from the perspective of entrepreneurs, and the incubator model from the perspective of inefficient investors. According to Anderson and Peterson model, the optimal model from the point of view of investors is the sponsor model and from the entrepreneurs' view, the self-fund model was considered with the highest efficiency and compliance according to the indicators