Start†up financing: How founders finance their ventures' early stage

Peter Waleczek, Thomas Zehren and Tessa Christina Flatten

Managerial and Decision Economics, 2018, vol. 39, issue 5, 535-549

Abstract: 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.

Date: 2018
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https://doi.org/10.1002/mde.2925

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:39:y:2018:i:5:p:535-549

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