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

Date
2017-01
Authors
Moghaddam, Kaveh
Aidov, Alexandre
DuVal, Charles W.
Azarpanah, Sara
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
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