Material Detail

Small Firm Use of Debt: An Examination of the Smallest Small Firms

Small Firm Use of Debt: An Examination of the Smallest Small Firms

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... Show More

Quality

  • User Rating
  • Comments
  • Learning Exercises
  • Bookmark Collections
  • Course ePortfolios
  • Accessibility Info

More about this material

Browse...

Disciplines with similar materials as Small Firm Use of Debt: An Examination of the Smallest Small Firms

Comments

Log in to participate in the discussions or sign up if you are not already a MERLOT member.
hidden