Start-Ups and External Equity: The Role of Entrepreneurial Experience
Peter A Zaleski
Business Economics, 2011, vol. 46, issue 1, 43-50
Abstract:
Interest in entrepreneurship has increased dramatically over the last two decades. Because of the role that entrepreneurship plays in economic development, an understanding of the financing of business start-ups is essential. A long-standing problem for many business start-ups is acquiring external equity during the first year of operations. This paper analyzes the determinants of obtaining external equity. Special consideration is given to the role of entrepreneurial experience. The results suggest that entrepreneurial experience impacts a start-up's ability to obtain external equity.
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:pal:buseco:v:46:y:2011:i:1:p:43-50
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