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Peter Cohan Addresses Wellesley Chamber: “How Capital Flows Are Changing Business Systems All Over the World”


“In this new world economy, Global Capital flows to emerging countries with ‘healthy’ Entrepreneurial Ecosystems,” said Peter Cohan, Adjunct Lecturer, Management, “This process ultimately encourages the invested countries to upgrade and improve their ecosystems.”  Cohan was guest speaker at the Wellesley Chamber of Commerce’s Babson College/Wellesley Bank Business Series held this morning at Babson.

He is coauthor—with U. Srinivasa Rangan, Associate Professor of Strategy and International Business— of a new book, Capital Rising:  How Capital Flows Are Changing Business Systems All Over the World.

Cohan said that policymakers, capital providers, and business managers are increasingly interested in maximizing their use of capital to spur economic development and job creation.  He and Rangan have created a new and sophisticated framework for understanding international capital flows in the Entrepreneurial Ecosystem.  This model consists of 4 key factors:

·         Financial Markets,

·         Corporate Governance,

·         Human Capital, and

·         Intellectual Property Regime.

Cohan said their Capital Heliotropism Framework helps managers make such decisions as:

·         Where to perform activities.

·         Which growing businesses to invest in.

·         How to manage mature businesses.

·         Whether to exit declining businesses.

·         Where to seek capital, and

·         How to hire managers and coordinate global operations.

Using dozens of case studies developed through interviews with organizations and drawing on the latest academic research, Capital Rising looks at how the Entrepreneurial Ecosystem interacts with today’s global economy, including growing, maturing, and rejuvenating industries, and various countries worldwide.