Uses of Equity Capital by Small Firms-Findings From the Surveys of Small Business Finances (for 1993 & 1998)
- Topics:
- Commercial Banking
- Tags:
- Equity,
- Survey,
- Small Business,
- Montana State University,
- Investment,
- Financing Startups,
- Financial Services,
- Financial,
- Finance,
- Venture Capital
- Source:
- Montana State University
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Overview: This paper utilizes the information collected in the 1993 and 1998 Small Business Finance surveys to investigate the uses of equity capital by small firms. It finds that while the importance of public issue markets (IPOs) and the role of venture capital investment in promoting the growth of small dynamic firms cannot be denied, the importance of external equity capital in promoting the formation and the growth of small firms seems to be overstated. A majority of small firms relied on internal sources of capital and external borrowing from financial institutions to finance their business operation and growth. In addition, internal equity and commercial bank loans appeared to be complementary financial resources.
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Format: PDF | Size: 145KB | Date: Aug 2004 | Pages: 23





