Funding gap, what funding gap? Financial bootstrapping: Supply, demand and creation of entrepreneurial finance

By Wing Lam. 2010

113 citations recorded by the source corpus.

Purpose – The aim of this paper is to make sense of the “funding gap” by exploring how and why informal entrepreneurial finance is made available to entrepreneurs. By challenging the epistemological and ontological assumptions of the “funding gap”, an enactment perspective of entrepreneurial finance, supported by a social constructionist stance, is proposed in this paper.Design/methodology/approach – The study on which this paper reports was conducted through a longitudinal fieldwork process. Networks in two Chinese cities, Shanghai and Hong Kong, were chosen because of their differences in institutional context yet exceptionally high level of entrepreneurial activities.Findings – This paper highlights the active role entrepreneurs play in managing their financial needs in the process of new venture creation. The results show that entrepreneurs are actively managing the demand as well as supply of entrepreneurial finance to narrow the “funding gap”. Furthermore, individuals work to fill the funding gap by...

Subfields: Accounting, Finance, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/27880cdf43fb19fd1aeb596a0b90cc6268da42ed