Study on Planning Sustainable Partnerships for Entrepreneurial Ventures in Professional Service Firms (PSFs)

Abstract

This paper begins with a comprehensive analysis of the literature on entrepreneurship, covering everything from how to describe it to its macroeconomic effect and the various stages of entrepreneurial start-ups. The literature delves deeper into the resources required to make such enterprises successful, as well as the many agency issues that may emerge between the entrepreneur and other financial backers. The article is based on two examples of new ventures in professional service companies (PSFs), and it evaluates the interaction patterns between the entrepreneur and other financial investors, describing potential challenges that may arise in real life, and how to overcome them. One of the case studies had the good fortune of successfully resolving such a relationship, resulting in the satisfaction of all stakeholders and the development of a long-term entrepreneurial venture, while the other case study ran into similar issues, ultimately leading to bankruptcy. Keywords: entrepreneurship, entrepreneur, case studies, professional service firms, sweat equity, shadow equity, resources, conflict of interest, financial investors, MENA region.