Capital Structure of Growing Small Firms: A 12-Country Study on Becoming Bankable

Peterson, Rein; Shulman, Joel M.

doi:10.1177/026624268700500401

Cited by 47 publications

(17 citation statements)

References 16 publications

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“…Initial funding sources have been the subject of international research and are a useful focus in part because firm age has yet become a variable capable of influencing this decision (Hamilton and Fox, 1998). Peterson and Schulman (1987) provided a general model relating the financial structure of the small firm to its age (or size). Financial markets are not sufficient and do not provide adequate financial opportunities for new firms.…”

Section: Resultsmentioning

confidence: 99%

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The financing preferences and capital structure of micro, small and medium sized firm owners in forest products industry in Turkey

Akyüz

Serіn

et al. 2006

Forest Policy and Economics

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Section: Resultsmentioning

confidence: 99%

“…International comparative studies by Remmers et al (1974) and Peterson and Schulman (1987) reached different conclusions. The first of these studies found the debt/ total assets ratio to be independent of firm size.…”

Section: Small Firms and Financementioning

confidence: 95%

The financing preferences and capital structure of micro, small and medium sized firm owners in forest products industry in Turkey

Akyüz

Serіn

et al. 2006

Forest Policy and Economics

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“…For example, family firms often have unsound financial records, asset security, and equity base, making it difficult for them difficult to obtain external finance in the venturing process. Under such circumstance, family members, guided by altruistic belief, may bring in personal equity (Peterson & Shulman, 1987) or family loans, therefore easing the firm from financial anemia (Berger & Udell, 1998;Romano, Tanewski, & Smyrnios, 2000). Moreover, if the firm is short of human resources in the venturing, family members who have not formally engaged in the firm may join in without claiming any financial compensation, therefore mitigating the business from the resource shortage pressure and salary payment burden.…”

Section: Risk Taking and Performancementioning

confidence: 99%

Attitude of Couples and Marrigeable Singles in Establishing Joint Fashion Business

Amubode¹,

Rauf-Lawal²,

Owodiong-Idemeko³

2016

JMS

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Entrepreneurship has been observed to work among couples who have mutual understanding and trust. It has also been observed to have more advantages in terms of the synergy that can bring about achieving more, one's business been in safe hands and building marital fidelity. Nevertheless, it has also been conceived by some individuals that joint business among couples can lead to instability and arguments that arise from financial matters of the business. There are several studies in marriage and family business, effect of family on entrepreneurship, fashion marketing environment, fashion marketing strategies, fashion communication etc and none focuses on family fashion business in Nigerian socio-cultural and fashion marketing environment. Therefore, this study focuses on the attitudes of married couples and marriageable singles in establishing joint clothing and textile business. A total of 30 graduate students of Clothing and Textiles were purposefully selected for the study because they are trained to acquire vocational and entrepreneurial skills to be job creators (not job seekers), employers of labour and maintaining balance family life. Result shows that the respondents have favorable attitude to entrepreneurial skills, business management, home management, financial issues, risk management, cultural values and personality with mean scores of 3.48, 3.21, 3.13, 3.09, 3.53, 3.75 and 2.60 respectively. The overall attitudinal score is 3.26 indicating a favorable response that couples and marriageable singles can establish joint fashion business.Therefore this study recommends that couples who intend to own joint businesses should have mutual understanding, trust and communicate more about financial matters before they own a joint business. They should discover an appropriate way of handling the business with maturity and proper organization so as to avoid conflicts.

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“…Firms can bridge short periods by means of alternative instruments like supplier credits. Indeed, supplier credits are of great importance for start-ups (Peterson and Shulman 1987). In general, the supply of bank credit seems not to be the chief problem for SMEs, as the analysis of Binks and Ennew (1997) suggests.…”

Section: Derivation Of Hypothesesmentioning

confidence: 99%

On the Role of Entrepreneurial Experience for Start-Up Financing - An Empirical Investigation for Germany

Metzger

2007

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp07047.pdf Non-technical summaryFounders often have big problems with firm financing issues. Financing problems may arise for many reasons. Information asymmetry and uncertainty are important, but so are such things as ignorance. Experienced entrepreneurs should have more knowledge about financing issues and should be more likely to know who to turn to for help and advice. Thus, they have advantages over novice entrepreneurs when it comes to financing, which should be reflected in differences regarding financing issues. Additionally, the analysis accounts for the kind of experience the entrepreneurs have. It is important whether entrepreneurs have previously been successful or failed, because business failure may trigger other effects than success.The analysis is based on data from the KfW Start-up Monitor. The KfW Start-up Monitor is a representative annual survey of the German population over 14 years of age. The relevant survey was conducted from August to November 2003, collecting information on 40,155 individuals. 1,125 individuals answered in the affirmative when asked if they had become self-employed during the last twelve months, regardless of whether it be on a regular or "sideline" basis. The analysis compares novice and experienced entrepreneurs, where entrepreneurial experience means that they are either portfolio entrepreneurs, i.e. still participating in their previous firm, or are restarters, i.e. they abandoned a previous business.With regard to the extent of the demand for financing, there is only an indication of reduced demand in the case of restarters venturing after a business failure, i.e. bankruptcy. However, experience has some effect on the probability of utilizing different financing sources and the relative extent to which each is used. Portfolio-entrepreneurs are more likely to use means from family and friends and do so for a greater share of their financing needs, too. Moreover, they use their own funds as often as other entrepreneurs, but these make up a smaller share of the total amount financed. Restarters who sold or transferred a previous business are more likely to use bank loans and they also use them for a higher share of their total financing needs. Restarters who closed/liquidated a previous business utilize means from family and friends more often than others, yet they do not differ in the share used.Restarters with failure experience ...

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Capital Structure of Growing Small Firms: A 12-Country Study on Becoming Bankable

Cited by 47 publications

References 16 publications

The financing preferences and capital structure of micro, small and medium sized firm owners in forest products industry in Turkey

The financing preferences and capital structure of micro, small and medium sized firm owners in forest products industry in Turkey

Attitude of Couples and Marrigeable Singles in Establishing Joint Fashion Business

On the Role of Entrepreneurial Experience for Start-Up Financing - An Empirical Investigation for Germany

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