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Start‐up financing: How founders finance their ventures' early stage
Author(s) -
Waleczek Peter,
Zehren Thomas,
Flatten Tessa Christina
Publication year - 2018
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.2925
Subject(s) - bootstrapping (finance) , finance , venture capital , entrepreneurial finance , entrepreneurship , revenue , business , resource (disambiguation) , new ventures , economics , computer network , computer science
Although the entrepreneurship literature has advanced our understanding of start‐up financing, little is known about the mechanisms founders use to finance the beginning of a venture. Drawing upon resource‐based view, this study relocates bootstrapping is a strategic choice rather than a necessity. By analysing the financial behaviour of 3,017 new business owners, we reveal owner‐financed bootstrapping is a strategic choice rather than a necessity. We also demonstrate related techniques that are used independent of industry, initial capital, financing difficulties, and impeded revenues.