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Finance and Financial Management Commons™
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Full-Text Articles in Finance and Financial Management
Small Business Owner Satisfaction With Financial Performance: A Longitudinal Study, Shanan G. Gibson, William C. Mcdowell, Michael L. Harris
Small Business Owner Satisfaction With Financial Performance: A Longitudinal Study, Shanan G. Gibson, William C. Mcdowell, Michael L. Harris
New England Journal of Entrepreneurship
This exploratory study examines the financial performance satisfaction of small business owners at two time periods: (1) nearing the end of the Great Recession and (2) three years into economic recovery. In addition to considering small business owners in general, special attention has been paid to women and minority owners. Using independent samples t-tests, results indicate that business owners are more satisfied with their financial performance in 2012 than they were in 2009. However, results were not consistent for all subgroups of the population; differences exist between men and women owners and between Caucasian and minority owners. Whereas men mirrored …
Bootstrapping Techniques And New Venture Emergence, John T. Perry, Gaylen N. Chandler, Xin Yao, James Wolff
Bootstrapping Techniques And New Venture Emergence, John T. Perry, Gaylen N. Chandler, Xin Yao, James Wolff
New England Journal of Entrepreneurship
Among nascent entrepreneurial ventures, are some types of bootstrapping techniques more successful than others? We compare externally oriented and internally oriented techniques with respect to the likelihood of becoming an operational venture; and we compare cash-increasing and cost-decreasing techniques with respect to becoming operational. Using data from the first Panel Study of Entrepreneurial Dynamics, we find evidence suggesting that when bootstrapping a new venture, the percentage of cash-increasing and cost-decreasing externally oriented bootstrapping techniques that a venture’s owners use are positive predictors of subsequent positive cash flow (one and two years later). But, internally oriented techniques are not related to …
Entrepreneurial Financing—Alternatives For Raising Capital, Paul Broude, Joseph E. Levangie
Entrepreneurial Financing—Alternatives For Raising Capital, Paul Broude, Joseph E. Levangie
New England Journal of Entrepreneurship
Most entrepreneurs are continually concerned about their finances. Their companies perhaps not yet profitable, they may have a fear of “running out of dry powder.” These entrepreneurs often have fallen in love with their company’s technologies, products, and potential markets, but they require more resources. Invariably these emerging ventures shroud their fear of the grueling capital raising marathon by presenting voluminous business plans to potential investors. They often flaunt their “optimized business models.” Investors, however, typically want to know why the potential investment is such a good deal. The entrepreneur often wants guidance regarding what to say to whom in …
Preparing Your Business For Valuation, Margaret D. Nowicki, Eric E. Lewis, Jeffrey W. Lippitt
Preparing Your Business For Valuation, Margaret D. Nowicki, Eric E. Lewis, Jeffrey W. Lippitt
New England Journal of Entrepreneurship
There is a tremendous need for the valuation of small businesses. Oftentimes, small businessowners do not have the wherewithal to gather the data and keep it up to date for use in situations that require valuation. Formal valuations are necessary because they provide objective evidence of value, in contrast to value set by markets on which public companies are traded. This article focuses on some factors that impact the valuation of the business and will help small businessowners feel more comfortable talking with financial professionals about how the business might be valued.
A System Dynamics Approach To Assessing Public Policy Impact On The Sustainable Growth Rate Of New Ventures, Jeff W. Trailer, Kuau Garsson
A System Dynamics Approach To Assessing Public Policy Impact On The Sustainable Growth Rate Of New Ventures, Jeff W. Trailer, Kuau Garsson
New England Journal of Entrepreneurship
The growth of firms is fundamentally based on self-reinforcing feedback loops, one of the most important of which involves cash flow. When profit margin is positive, sales generate cash, which may then be reinvested to finance the operating cash cycle. We analyze simulations of a sustainable growth model of a generic new venture to assess the importance of taxes, and regulatory costs in determining growth. The results suggest that new ventures are particularly vulnerable to public policy effects, since their working capital resource levels are minimal, and they have few options to raise external funds necessary to fuel their initial …