Bhaumik, S.K., Fraser, S. and Wright, M. (2015) What Do We Know About Entrepreneurial Finance and Its Relationship with Growth? International Small Business Journal, 33 (1). pp. 70-88. ISSN 1741-2870
Abstract
This article explores what we do (and do not) know about entrepreneurial finance and its relationship with growth. Broadly, there is a need for research to go beyond traditional supply side/market failure issues to better understand the role of entrepreneurial cognition, objectives, ownership types and firm life-cycle stages in financing/investment decisions. We show that little is known about the pivotal relationship between access to external finance and growth due to limitations in current approaches to testing financial constraints. Instead, we propose that the relationship between funding gaps and business performance as a direct and nuanced approach to identifying financial constraints in different entrepreneurial finance markets requires scrutiny. There is also a necessity for research to disentangle cognitive from financial constraints and to better understand the role of financiers in enabling growth. In particular, there is a need to explore the relationship between non-bank sources of finance and growth, shorn of inherent survival and selection bias. We outline an agenda for future research to address gaps in our understanding.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2015 Sage. This is an author produced version of a paper subsequently published in International Small Business Journal. Uploaded in accordance with the publisher's self-archiving policy. |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 29 Jan 2015 14:52 |
Last Modified: | 20 Mar 2018 23:21 |
Published Version: | http://dx.doi.org/10.1177/0266242614547827 |
Status: | Published |
Publisher: | SAGE Publications |
Refereed: | Yes |
Identification Number: | 10.1177/0266242614547827 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:82518 |