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

Date

2017-01

Authors

Journal Title

Journal ISSN

Volume Title

Publisher

Taylor & Francis

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.

Description

Keywords

Entrepreneurship, Immigrants, Venture capital

Citation

Moghaddam, K., Aidov, A., DuVal, C. W., & 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

URI

https://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=bth&AN=120424087&site=eds-live&scope=site&custid=s5615486
 http://hdl.handle.net/11416/689

DOI

Collections

School of Business and Free Enterprise