Hello there, Hans Landström – new honorary doctor with focus on financing and history of entrepreneurship

Hans Landström has recently been awarded an honorary doctorate in innovation science at Halmstad University, a university with which he has had close ties since the late 1980s. His research has mainly focused on how new and small businesses are financed, and on how the field of entrepreneurship has developed.

Congratulations on your appointment! What does it mean to be awarded an honorary doctorate at Halmstad University?

– It’s always nice to be appreciated. My career is behind me, and I don’t think this appointment can be used to negotiate my pension (laughs).

– Jokes aside. I have a special relationship with Halmstad University, which is why it is an extra honor to be awarded an honorary doctorate there. On the day I received my PhD at Lund University, I received a phone call from the then rector of the university offering me a position. So from 1987 to 2001, when I took up a professorship at Lund University, I worked in Halmstad. I continued to keep in close contact with Halmstad even after the move to Lund.

Already in your thesis, you studied the development and financing of young technology-based companies. Then, the financing of new and small businesses became a main track of your research. Tell us about it.

– Yes, that’s right. My thesis was entitled “Developmental trajectories and financial behavior in young innovation-based firms.” In it, I studied why some companies suddenly start growing while others continue to flounder. Sometimes I can’t help but wonder if it would have been more fun to continue studying development paths instead of focusing on the financing track.

Which results or perspectives from your funding research do you think have been most important?

– Perhaps the most important thing has been to try to understand how the Swedish business angel market has developed and how it actually works.

– Equally important has been to look at financing issues from the perspective of the entrepreneur. A lot of research has been from the investor’s perspective and often focused on technology-based growth companies. I have been more interested in how financing works in ordinary companies and how entrepreneurs themselves manage their financial conditions.

– For example, it has looked at how financial decisions are made in new businesses, how entrepreneurs use bootstrapping to access resources without paying full price, and how conflicts can arise and be managed between entrepreneurs and external investors.

What do you think is missing from current research on entrepreneurship and small business finance?

– Much of today’s research is dominated by financial economists, quantitative databases and a focus on growth companies, technology companies and venture capital.

– I understand that growth companies and venture capital are important, but we also need to understand the financing of ‘regular’ companies and entrepreneurial decision-making. This is where bootstrapping, bank financing and the link between the finances of the business and the household finances are key. The money that the entrepreneur puts into the business is an investment from the household’s perspective.

– Moreover, the financial landscape has changed over time. We need more studies that allow us to understand these changes and their implications for businesses. We need to understand the whole financial ecosystem.

Another main track of your research has been the historical development of the field of entrepreneurship. How was that interest sparked?

– My interest was aroused when I was the opponent of a thesis. During the opposition, it became clear that the doctoral student had used one of the classical economists in the field of entrepreneurship, namely Joseph Schumpeter, without actually having read his work.

Why are the classics of entrepreneurship so important for researchers?

– Doctoral students need to master their field of research. It is about understanding why today’s questions are being asked, what questions have and have not been answered, and what methods have actually worked.

– As a researcher, you need to understand both the social and the intellectual contexts that have developed and shaped your subject. That is why for many years I ran PhD courses on the history and classics of entrepreneurship.

AI is being discussed a lot right now. How do you think AI will impact entrepreneurship research?

– All research will be affected by AI. In medicine and science, new measuring instruments have often made it possible to see and analyze new things. Similarly, I think AI can help us analyze material in entrepreneurship research in new ways.

– At the same time, AI raises the question of the role of the researcher. If AI can be used to write literature reviews, conduct analyses and write articles, it may be even more important to evaluate researchers based on how they formulate interesting problems, understand theory, get close to empirical data and design their studies.

What are you most proud of in your research career?

– If there is one thing I am proud of, it is that I, together with others, have built up several research environments and, not least, raised money for them. I am also proud of having supervised many talented doctoral students through to a finished thesis and thus contributed to new generations of researchers. I don’t know exactly how many, but it’s probably around twenty. Most of them are still active as researchers today, and some have become professors.

Are you still active as a researcher?

– Yes, but not as active as before. I am still working on some projects, including with former PhD students who are now established researchers. For example, I am currently editing a book on writing literature reviews in the field of entrepreneurship. I am also writing an article on structural social change based on Per Davidsson’s concept of “external enablers”.

– In addition, I am working on a book that seems to be a lifelong project. It is about entrepreneurship related to economic-historical development.

Read “Entrepreneurship research faces a crossroads”, another interview with Hans Landström.