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Article
The Familiarity of Small Technology-Based Business Owners with Sources of Capital: Impact of Location and Capitalization
Journal of Small Business Strategy
  • Howard E. Van Auken, Iowa State University
Document Type
Article
Publication Date
10-1-2000
Abstract

This paper examines issues related to the acquisition of capital by a sample of 142 small technology-based firms. Specifically, the study investigates the relationship between owners of small technology-based firms' familiarity with the alternative sources of capital and (I) location of the business and (2) amount of capital raised by the business. The results show that familiarity with alternative sources of capital is affected by the location of the business and amount of capital raised by the company.

The results have several implications affecting small business owners, providers of capital, and policy-makers. First, many small business owners are relatively unfamiliar with many sources of capital that are used to fund growth. Second, owners of small technology-based firms indicate low familiarity with government financing programs. Third, owners of small technology-based firms in smaller communities are less familiar with sources of capital commonly used to finance growth. Fourth, owners of small technology-based firms are relatively unfamiliar with methods of bootstrap financing.

Comments

This article is from Journal of Small Business Strategy 9 (2000): 33.

Rights
This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Copyright Owner
Van Auken
Language
en
File Format
application/pdf
Citation Information
Howard E. Van Auken. "The Familiarity of Small Technology-Based Business Owners with Sources of Capital: Impact of Location and Capitalization" Journal of Small Business Strategy Vol. 11 Iss. 2 (2000) p. 33 - 47
Available at: http://works.bepress.com/howard-vanauken/15/