Why Entrepreneurs Bring Benefits to Corporate Boards

It often pays to have an entrepreneur on a corporate board. According to a recent research paper, smaller companies that appoint entrepreneurs to their boards see a number of positive changes. Their stock prices shoot up more than expected in the days following the announcement. Their revenue-growth rates are higher than those at companies that appoint non-entrepreneur directors. And a measure of long-term company value moves higher than at the other companies.If you have a smaller company and you’re looking for directors, it would be a good idea to look for someone with a background as an entrepreneur.

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