The Power Law: The Development of the New Beginning with Venture Funding

By Joseph Bole

The formation and growth of small and medium-sized enterprises (SMEs) are recognized as one of the most important factors for economic growth (Storey 1994, Davidsson et. al 1996). Access to risk capital (equity capital) is often emphasized as a critical condition for SMEs and new venture start-ups to be able to pursue growth opportunities (Ds 1994:52; SOU 1996:69; SOU 1993:70; European Commission, 1998). Because of limited life history and a lack of steady cash flows, young firms that are at the beginning of a growth phase often have problems accessing traditional debt capital. Financing the firm with the capital of the entrepreneur is generally not an alternative because these resources are usually either already used or too small (Bygrave and Timmons, 1992). Furthermore, fast-developing new firms can seldom compound the capital needed for fast development themselves (Brophy 1996).

• Format: Paperback
• Language: English
• ISBN: B09SDY1CV8
• ISBN13: 9798416389369
• Release Date: January 1
• Publisher: Independently Published
• Length: 58 Pages
• Weight: 0.17 lbs.
• Dimensions: 0.1" x 5.5" x 8.5"