Entrepreneurial Finance for Vulnerable Communities

Abstract

This study presents the financial progression of an associative initiative of a vulnerable community in Colombia, from early stages to growth. Initially, basic financial concepts are presented, together with the phases traditionally defined by previous literature. The case is then presented in terms of funding alternatives for entrepreneurs in Colombia, stages followed by the association and funding throughout such stages. Results show that even though the case under analysis presents similar features to those of new ventures started by non-vulnerable individuals, its specificities make it unique; concepts anticipated by existing literature were not fully applicable in this case. A set of issues and solutions are presented regarding entrepreneurial finance for vulnerable communities and in particular, for the case under analysis. Finally, further avenues of research and conclusions are presented.