Debt Financing, Survival, and Growth of Start-Up Firms PDF Download
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Author: Rebel A. Cole
Publisher:
ISBN:
Category :
Languages : en
Pages : 48
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Book Description
We analyze the relation between different forms of debt financing at the firm's start-up and subsequent firm outcomes. We distinguish between business debt, obtained in the name of the firm, and personal debt, obtained in the name of the firm's owner and used to finance the start-up firm. Start-up firms with better performance prospects are more likely to use debt and, in particular, business debt. Compared to all-equity firms, firms using debt at the initial year of operations are significantly more likely to survive and achieve higher levels of revenue three years after the firm's start-up. However, results hold for business debt only. Debt obtained in the name of the firm is associated with longer survival time and higher revenues, while debt obtained in the name of the firm's owner has no effect on survival time and is associated with lower revenues.
Author: Rebel A. Cole
Publisher:
ISBN:
Category :
Languages : en
Pages : 48
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Book Description
We analyze the relation between different forms of debt financing at the firm's start-up and subsequent firm outcomes. We distinguish between business debt, obtained in the name of the firm, and personal debt, obtained in the name of the firm's owner and used to finance the start-up firm. Start-up firms with better performance prospects are more likely to use debt and, in particular, business debt. Compared to all-equity firms, firms using debt at the initial year of operations are significantly more likely to survive and achieve higher levels of revenue three years after the firm's start-up. However, results hold for business debt only. Debt obtained in the name of the firm is associated with longer survival time and higher revenues, while debt obtained in the name of the firm's owner has no effect on survival time and is associated with lower revenues.
Author: Rebel A. Cole
Publisher:
ISBN:
Category :
Languages : en
Pages : 55
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Book Description
This study examines and compares characteristics, financing patterns, and performance outcomes of women-owned and men-owned young entrepreneurial firms. Using fully imputed data from the Kauffman Firm Surveys of U.S. start-up firms, we first examine the differences in firm and owner characteristics between women- and men-owned firms at the firm's start-up. Second, we explore the differences in equity and debt financing between the two groups of firms during the first several years of the firm's operations. Third, we explore whether performance outcomes (in terms of survival and growth) of young entrepreneurial firms are different for firms owned by women versus firms owned by men. We find large and significant differences in the amount of start-up capital (debt and equity), with women-owned firms at a significant disadvantage. We also find that women-owned firms are significantly less likely to use business credit than are men-owned firms which is important considering prior findings that firms using business credit at start-up survive longer and grow faster. Finally, while we find large and significant univariate differences in performance of women-owned vs. men-owned firms, these differences disappear in our multivariate analysis of revenues and survival. However, these differences remain significant for employment.
Author: Farhad Taghizadeh-hesary
Publisher: World Scientific
ISBN: 981123583X
Category : Business & Economics
Languages : en
Pages : 425
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Book Description
Successful startups and small businesses can play a significant role in economic growth and job creation. They also contribute to economic dynamism by spurring innovation and injecting competition. Startups are known to introduce new products and services that can create new value in the economy. It is notable that most startups exit within their first ten years, and most surviving young businesses do not grow but remain small. Startups and small businesses face several obstacles to their development. Accessing capital is a crucial constraint on their growth. Most startups and small businesses have difficulties getting the funds they need because of their lack of a performance track record and lack of collateral, making it difficult for lenders or investors to assess their risk. Besides, they are in the early stages of development and face a very high possibility of failure, which significantly raises financing and investment risk.Investment in Startups and Small Business Financing provides 12 thematic and case studies on new methods for bringing private investment (loans or equity) to startups and easing small businesses' access to finance (debt and capital). The contributors are senior-level policy experts and researchers from governments, think tanks, academia, and international organizations. The chapters are authored in a policy-oriented way to be understandable for the readers with a different background. This book is a precious source for the governments for adopting the right policies to develop small businesses and startups and valuable for the researchers in economics, business, and finance.
Author: Kenneth H. Marks
Publisher: John Wiley & Sons
ISBN: 0471726311
Category : Business & Economics
Languages : en
Pages : 514
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Book Description
An in-depth look at the strategies, capital structure, and fund raising techniques for emerging growth and middle-market companies. Here is a comprehensive and practical guide to understanding and applying the basics of corporate finance to emerging growth and middle-market companies. Using empirical data and actual company cases to illustrate capital structures and financing approaches, the book provides a detailed discussion of the many funding instruments, from traditional bank loans and asset-based financing to different types of private equity and other creative solutions; the types of funding sources and their expected rates of returns; and typical deal terms.
Author: Douglas Cumming
Publisher: OUP USA
ISBN: 0195391241
Category : Business & Economics
Languages : en
Pages : 937
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Book Description
Provides a comprehensive picture of issues dealing with different sources of entrepreneurial finance and different issues with financing entrepreneurs. The Handbook comprises contributions from 48 authors based in 12 different countries.
Author: Luisa Alemany
Publisher: Cambridge University Press
ISBN: 1108421350
Category : Entrepreneurship
Languages : en
Pages : 647
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Book Description
Academics and practitioners from a range of institutions across Europe provide a cutting-edge, practical, and comprehensive review on the financing of entrepreneurial ventures. From sourcing and obtaining funds, to financial tools for growing and managing the financial challenges and opportunities of the startup, Entrepreneurial Finance: The Art and Science of Growing Ventures is an engaging text that will equip entrepreneurs, students and early-stage investors to make sound financial decisions at every stage of a business' life. Largely reflecting European businesses and with a European perspective, the text is grounded in sound theoretical foundations. Case studies and success stories as well as perspectives from the media and from experts provide real-world applications, while a wealth of activities give students abundant opportunities to apply what they have learned. A must-have text for both graduate and undergraduate students in entrepreneurship, finance and management programs, as well as aspiring entrepreneurs in any field.
Author: Sammis B. White
Publisher: M.E. Sharpe
ISBN: 0765636514
Category : Business & Economics
Languages : en
Pages : 424
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Book Description
Completely revised, this new edition presents a well-balanced set of economic development financing tools and techniques focused on our current times of economic austerity. While traditional public sector techniques are evaluated and refocused, this volume emphasizes the role of the private sector and the increasing need for cobbling together different techniques and sources to create a workable financial development package. The chapters address critical assessments of various methods as well as practical advice on how to implement these various techniques. New chapters on entrepreneurship, the changing nature of the community banking system, and the increasing need for partnerships provides critical insights into the ever-evolving practice of economic development finance. Key features: --Provides a comprehensive view of financing methods: public, private, and a combination of both sectors. --Includes an up-to-date evaluation of traditional and new financing techniques, and the limitations and opportunities of each. --Addresses current economic issues, including a chapter on banking reform. --Includes completely revised sections on private and entrepreneurial finance as well as public finance.
Author: Josh Lerner
Publisher: University of Chicago Press
ISBN: 0226473104
Category : Business & Economics
Languages : en
Pages : 366
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Book Description
Often considered one of the major forces behind economic growth and development, the entrepreneurial firm can accelerate the speed of innovation and dissemination of new technologies, thus increasing a country's competitive edge in the global market. As a result, cultivating a strong culture of entrepreneurial thinking has become a primary goal throughout the world. Surprisingly, there has been little systematic research or comparative analysis to show how the growth of entrepreneurship differs among countries in various stages of development. International Differences in Entrepreneurship fills this void by explaining how a country's institutional differences, cultural considerations, and personal characteristics can affect the role that entrepreneurs play in its economy. Developing an understanding of the origins of entrepreneurs as well as the choices they make and the complexity of their activities across countries and industries are of central importance to this volume. In addition, contributors consider how environmental factors of individual economies, such as market regulation, government subsidies for banks, and support for entrepreneurial culture affect the industry and the impact that entrepreneurs have on growth in developing nations.
Author: Jeffry A. Timmons
Publisher: McGraw Hill Professional
ISBN: 0071454861
Category : Business & Economics
Languages : en
Pages : 255
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Book Description
The entrepreneur's step-bystep guide to venture capital--where to find it, how to secure it, and what to do with it Fewer than 40 percent of entrepreneurs seeking new business funding each year actually get that funding. How to Raise Capitalimproves those odds, providing prospective as well as current business owners with the knowledge they need to prepare an effectiveloan proposal, locate a suitable investor, negotiate and close the deal, and more. The all-star team of entrepreneurial experts behind How to Raise Capital gives readers top-level educational theory with hands-on, real-world knowledge. This thorough examinationof the inner workings of the venture capital industry explores: Resources available to entrepreneurs, from SBA loans to angel investors Proven strategies for identifying and approaching equity sources Characteristics of a "superdeal"--from the investor's perspective
Author: Thomas G. Annino
Publisher:
ISBN: 9781596221222
Category : Business & Economics
Languages : en
Pages : 395
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Book Description
Companies in the dynamic emerging growth markets such as information technology, biotechnology, telecommunications and nanotechnology have long used debt financing, commonly called venture debt, to supplement venture capital equity investments to fund their growth. Although the hundreds of millions of dollars of financing provided annually in this market offers valuable economic fuel to these companies, the transactions are often consummated inefficiently and at a higher than expected cost. In this book Thomas Annino, President of Thomas Girard & Company and former S.V.P. and General Manager of GE Capital's market leading Life Science and Technology Finance business, presents a comprehensive look at the venture debt marketplace for companies in all industries. Written for executives, CPA's, attorneys, venture investors and other industry professionals, Venture Debt Alternatives and Evaluation Guidelines offers a profile of the marketplace along with a systematic framework for approaching the debt capital markets, increasing transaction transparency and avoiding common, costly mistakes. The book includes a rich array of useful and practical information including: • An Overview of the Financing Cycle • Multiple “Debt Done Wrong” Case Studies illustrating and analyzing costly, but avoidable, mistakes made by emerging growth companies - hundreds of thousands of dollars in "avoidable costs." • Analytical Tools for calculating costs, comparing proposals and profiling the risks assumed by the financing source which have proven useful in negotiations.• A Comparative Analysis of Common Debt Products including a chapter focusing on equipment leasing.• Multiple Appendices of Composite Proposal Letters and Debt Documents with corresponding analysis and negotiation tips.
