Portfolio entrepreneurship as a resilient strategy during the economic crisis in Sri Lanka

Abstract

The successful opportunity identification and exploitation in a market place is demanding and challenging for a venture. However, entrepreneurs consider themselves as risk seekers and choose to do so effectively on even more than one business simultaneously. Entrepreneurs who identified with multiple businesses are portfolio entrepreneurs. Portfolio entrepreneurs have been shown to operate fast-growing business models and contribute significantly to wealth creation. In times of crisis, there is a critical need for research into the structure, strategy, and administration of portfolio ventures. Therefore, this study aims to uncover how entrepreneurs operate more than one business in an economic crisis to overcome the pitfalls they experience. With the aim of finding the above the data collection has been done through semi structured interviews. The sampling methods were a purposive sampling method which was used to collect information from entrepreneurs who are ultimately experiencing the business portfolios. Thematic analysis was used for data analysis. The study found that the larger and more related portfolios executed asset redeployment more effectively especially in relation to physical assets to avoid the immerse of market and retain their economic profit and they wanted to utilize the resources that are readily available by engaging in portfolios. However, this overlooks the fact that portfolio entrepreneurs are risk-averse and need to build some diversification into their portfolios. The portfolio structure facilitates the main funding routes for portfolio growth, which is internal cash flow and new equity invested by active partners. Therefore, it is suggested that portfolio entrepreneurs may have an even greater importance than is yet realized. This paper contributes to the future entrepreneurs who are awaiting to engage in portfolios of business by providing an understanding on mitigating the volatility of business ventures.