Financial Bootstrapping: a critical entrepreneurship skill

Soumodip Sarkar ()
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Soumodip Sarkar: CEFAGE_UE,Department of Management, University of Évora, Portugal

CEFAGE-UE Working Papers from University of Evora, CEFAGE-UE (Portugal)

Abstract: Bootstrapping finance involving the use of resources to start and grow a venture at the lowest possible or even at no cost, acquires especial significance in times of a credit crunch. In this paper we explore, for the first time the use of bootstrap finance techniques in a small country European case. Based on a sample of ninety-nine Portuguese firms we first determine the most popular bootstrapping strategies, and then we test a set of hypotheses involving several socio-demographic and economic variables, some for the first time in the literature. The results yield some very interesting insights on small business strategies of non-conventional methods of financing. This paper also reveals how these strategies are related to characteristics of the small business owner, namely gender and education, as well as two business characteristics of the firm, that of firm size and internationalization.

Keywords: Entrepreneurship; Financial bootstrapping; Small firm financing. (search for similar items in EconPapers)
JEL-codes: G31 G32 L26 M13 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2012
New Economics Papers: this item is included in nep-ent and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:cfe:wpcefa:2012_20

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