This is a QR code. A QR Code is a 2-dimensional barcode, which has encoded in it a URL (web address), text, or other information. It can be read by a QR code scanner, including QR scanner smartphone apps. Once you have an app installed on your smartphone, open the app and hold your phones camera over a QR code to read it. Most QR codes youll come across have a URL encoded, so chances are when you read the QR code it will take you to a web page.
Reviewed by members of Editorial board for inclusion in MERLOT.
Click to get more information on the MERLOT Editors' Choice Award in a new window.
Click to get more information on the MERLOT Classics Award in a new window.
Click to get more information on the MERLOT JOLT Award in a new window.
Search all MERLOT
Click here to go to your profile
Click to expand login or register menu
Select to go to your workspace
Click here to go to your Dashboard Report
Click here to go to your Content Builder
Click here to log out
Please give at least one keyword of at least three characters for the search to work with. The more keywords you give, the better the search will work for you.
select OK to launch help window
You are now going to MERLOT Help. It will open in a new window
For optimal performance of MERLOT functionality, use IE 9 or higher, or Safari on mobile devices
Access to capital is an on-going challenge for small firms. Capital is required to address a broad range of needs: to cover start-up costs, to provide working capital, to secure facilities or equipment, and to hire employees. Most small firms are at a relative disadvantage, because they are too small to access the public debt and...
Access to capital is an on-going challenge for small firms. Capital is required to address a broad range of needs: to cover start-up costs, to provide working capital, to secure facilities or equipment, and to hire employees. Most small firms are at a relative disadvantage, because they are too small to access the public debt and equity markets. Similarly, they are typically too small to show up on the radar screens of venture capitalists on patrol for the next potential hot IPO. Alternatively, very small firms are heavily reliant on bank loans, trade credit, and informal sources of capital including loans from family and friends. Entrepreneurial finance literature typically segments small firms into two types. "Entrepreneurial firms" are those that start out small but have the objectives of growth, profitability, and eventually, perhaps, an IPO. "Lifestyle firms", on the other hand, are firms that are small and intend to remain small. The point of this distinction is that firms of different size might be expected to have different types of objectives. Correspondingly, one might expect different attitudes toward and use of various sources of capital. This paper will use data from the 1993 National Survey of Small Business Finances (NSSBF) to examine the financing strategies of very small firms, a largely understudied segment of the small business market. Specifically, it will examine the types of debt capital used by the smallest small firms and compare their usage to that of somewhat larger small firms. Further this article will attempt to determine the variables that predict the use of debt capital and externally acquired debt capital by small firms and larger firms. Finally, it will explore the extent to which smaller and larger firms apply for external debt capital and the extent to which they are approved for loans.