The Sámi firm : obtaining good value growth rates despite less financial resources available
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This Master thesis investigates differences in access to financial capital and consequences for company valuation among Sami and non-Sami companies in North Norwegian Sami regions. Access to capital is very important both for the entrepreneurs seeking value growth and dividends from their investment, and for the ability to exploit growth potential in these regions. In order to determine if special capital initiatives should be develop for the Sami regions, this research investigate if Sami, non-Sami, or both categories of companies, experience capital scarcity reducing growth in value and ability to exploit business opportunities. Differences is measured with regards to company financial value growth, market expansion orientation, level of private equity invested, and the use of network as source of finance. The aim is to reveal variations and similarities between Sami and non-Sami owned companies present in the same business environment. The thesis reveals that there are only marginal differences between Sami and non-Sami companies with regards to value growth. Sami companies have a Httie less invested equity and limited CEO network, but there were no significant differences between financial value growth, geographical market orientation and number of owners between these groups of companies. The results showa significant correlation between the amount of invested equity and financial growth for Sami companies, but not for non-Sami companies. One implication is that Sami companies experience lack of financial capital compared to Non Sami firms. There is also a significant correlation between geographica! market orientation and growth in firm value for non-Sami companies, but not for Sami. There was no significant correlation between network and financial growth for the companies in the selection. The reason might be that many of these companies are in service industries and seil directly to private customers, and hence need fewer contacts in the professiona! business life. The thesis finds that despite comparably less Invested Equity leve Is are Sami companies growing at the same rate as non-Sami. Two major implications can be drawn. In order to stimulate value creation and growth, one should establish initiatives improving access to financial capital for al! companies in Sami regions. Sami companies wHI benefit the most from this, but the growth potential in these regions could be much better utilized. The second major impiications, is that the market proves to be a strict selection mechanism, making capita! access a problem for aH companies in Sami regions.
Masteroppgave i bedriftsøkonomi - Universitetet i Nordland, 2012