ARTÍCULO
TITULO

Measuring Wealth Generation in Early-Stage Entrepreneurial Organizations: An Alternative to the Capital Asset Pricing Model

Robert A. Fiore    
Robert N. Lussier    

Resumen

There is no generally accepted measure of wealth created by new ventures, as most early-stage firms do not have positive cash flows, and early-stage discount rates cannot be estimated with sufficient accuracy as required by the Capital Asset Pricing Model (CAPM). Through regression analysis of organizational economic value, as assessed by a sample of 145 CPAs, this research supports using a new economic evaluation methodology involving the use of early-stage organizational structure itself as a construct and predictor of economic value. The current research employs a Validated Nascent Organizational Structure Sequence (VNOSS) model as an alternative to CAP-M in establishing the perceived economic value of early-stage entrepreneurial firms. The small business owner that utilizes the strategy of taking the firm through the VNOSS stages will create greater economic wealth. There is a substantial discussion of the implications of the applied research results.

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