Capital structure and competitive intensity: Considerations for Start-Up Firms

Ashish Pandey

MPRA Paper from University Library of Munich, Germany

Abstract: This short perspective article discusses the effect of a start-up firm's capital structure on the nature and degree of competition in the marketplace. Specifically, the article argues that the nature of financing availed by the start-up firms expose them to the risk of predatory price-based competition from a well-capitalized competitor. The staged model of capital infusion works best when tangible progress can be demonstrated at every new round of financing. Indian start-up firms need to acknowledge this fact, pursue innovations that complement the local realities and develop a distinct local model that justifies the need for additional capital.

Keywords: Venture Financing; Start-Up Firms; Predatory Competition; Capital Dumping (search for similar items in EconPapers)
JEL-codes: D43 G32 G38 K42 M13 (search for similar items in EconPapers)
Date: 2017-02, Revised 2017-05
New Economics Papers: this item is included in nep-cfn, nep-com, nep-dcm and nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/79399/1/MPRA_paper_79399.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:79399

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().