Finance and Financial Management Commons^™

Microfinance Services And Government Regulations: Reflections On Performance Of Small Holder Coffee Entrepreneurs In Uganda, Mary Juliet Nakabugo, Stephen Muathe, Evans Mwasiaji

The Journal of Entrepreneurial Finance

Small-scale enterprises are lauded around the world for their contribution to economic development. Resources and capabilities play an important role as accelerators of entrepreneurial activity and also increase enterprise performance. This research strived to understand how Microfinance services affect the performance of smallholder coffee entrepreneurs but also examine government regulations as a moderating variable for the association between microfinance and the performance of smallholder coffee entrepreneurs. The study was guided by the resource-based view supported by dynamic capability and contingency theories. Data on 400 Ugandan coffee entrepreneurs was gathered and statistically tested using a multiple linear regression model. Study scores …

The Impact Of Assets Structure And The Components Of Cash Conversion Cycle On The Egyptian Smes Financial Failure Predictability, Dr. Hassan Mounir El-Sady, Hatem Ahmed, Dr. Hosny Hamdy

The Journal of Entrepreneurial Finance

This study investigates determinants of Egyptian SMEs financial failure predictability based on a sample of 32 failure SMEs and 28 non-failure SMEs for the period 2013 and 2019. The determinants of SMEs financial failure are categorized into four groups; Working Capital, Asset Structure, Liquidity, and Leverage. The factor and logistic regression analysis are employed to identify the most significant independent variables that classify between failure and none-failure Egyptian’s SMEs and determine the driver of SMEs financial failure. Our findings significantly show that failing SMEs suffer from long cash conversion cycles resulting from long inventory holding period, average collection period, and …

The Impact Of Competition From Venture Capitalists On Corporate Venturing Investment, Marco Bade

The Journal of Entrepreneurial Finance

This study proposes a model on corporate venturing (CV) investment and examines the impact of venture capital (VC) activity in the economy on CV firms’ investment. The presence of VCs creates competition for entrepreneurs. This reduces CV firms’ expected venturing returns, and thus gives rise to a financial disincentive to CV investment. The empirical prediction of this result is that competition for talent should decrease CV investment. This prediction contradicts previous statements in the theoretical literature on CV.

Hot Or Not – Which Features Make Fintechs Attractive For Investors?, Johannes Klein, Leonard Stuckenborg, Jens Leker

The Journal of Entrepreneurial Finance

Attracting investors and generating funding is a key issue for all start-ups. The information asymmetries between investor and start-up need to be reduced. Despite the overwhelming literature on venture capital financing and different signals reflecting venture quality, pinpointing the signals which impact funding decisions remains an open issue. This study presents an empirical examination of the effectiveness of different signals to convince investors and generate funding. We examine the impact of signals concerning venture quality (classic ones such as human capital, intellectual capital and social alliance/network capital as well as the strategic orientation in terms of business model patterns. Based …

The Relationship Between Investment And Internal Cash Flows In Vc-Backed Smes: Does Firm Size Matter?, Zélia Silva Serrasqueiro, Filipe Sardo, Elisabete Félix

The Journal of Entrepreneurial Finance

Using panel data models and two research sub-samples composed of smaller and larger VC-backed, this study seeks to analyze the relationship between investment and internal cash flows. The results indicate that the investment sensitivity to internal cash flows is greater in larger than in the smaller VC-backed SMEs.

Debt is more important for smaller than for larger VC-backed SME investment. The moderation effect of VC ownership reduces the magnitudes of the positive impact of cash flows and debt as well as the negative effect of growth opportunities on investment in both smaller and larger VC-backed SMEs.

A High-Tech Start-Up’S Debt Financing Strategy: Implications For Valuing Soft Information, Hyunsung D. Kang

The Journal of Entrepreneurial Finance

How does entrepreneurial financing differ from traditional financing? This study sheds new light on this central question of entrepreneurial finance literature by exploring the distinctive role of soft information in a high-tech start-up’s debt financing. Entrepreneurial investors can obtain soft information from strong relationships with potential investees and use the information to evaluate and select promising investees. Using a dataset on 683 SBA 7(a) loan activities involved with information technology based start-ups, this study provides empirical evidence that high-tech start-ups tend to experience a lower rate of default if they are located close to the lending banks and the lending …