High-growth entrepreneurial firm funding: a qualitative study of native-born and immigrant entrepreneurs

Date
2017
Authors
Moghaddam, Kaveh
Aidov, Alexandre
DuVal, Charles W.
Azarpanah, Sara
Journal Title
Journal ISSN
Volume Title
Publisher
Routledge
Abstract
This qualitative study explores the financing choices of high-growth entrepreneurial firms established by native-born and immigrant entrepreneurs. Native-born and immigrant entrepreneurs are shown to pursue different financing approaches and strategies. Native-born entrepreneurs pursue multiple sources of financing, while immigrant entrepreneurs tend to rely on a single source of funding. In contrast to immigrant entrepreneurs who suggest bootstrapping as their preferred choice of financing, native-born entrepreneurs recommend bootstrapping as an initial source of funding, to be supplemented later by other external financing sources (e.g. banks, VC funds, business angels). Furthermore, native-born entrepreneurs solicit loans from large banks, while immigrant entrepreneurs seek loans from small local (community) banks. Finally, native-born entrepreneurs actively seek equity-based financing such as venture capital and business angel financing, while immigrant entrepreneurs avoid equity financing. [ABSTRACT FROM AUTHOR]
Description
Keywords
Economic development, Businesspeople, Venture capital, Qualitative research, Economics
Citation
Moghaddam, K., Aidov, A., DuVal, C., & Azarpanah, S. (2017). High-growth entrepreneurial firm funding: a qualitative study of native-born and immigrant entrepreneurs. Venture Capital, 19(1/2), 75–94. https://doi.org/10.1080/13691066.2016.1256295
DOI
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