Small Business Capitalization Patterns

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1989
Authors
Van Auken, Howard
Doran, B.
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Van Auken, Howard
University Professor Emeritus
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Management and Entrepreneurship

The Department of Management and Entrepreneurship seeks to provide students with the knowledge of organizations and management functions within organizations. Graduates will be able to understand work-related behavior, competitive strategy and advantage, strategies of international business, and human-resource management practices.

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The Department of Management was formed in 1984 in the College of Business Administration (later College of Business).

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1984 - present

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Abstract

This study investigates the initial capitalization and financing patterns of recently established (new) and established (old) small businesses in Iowa. Analysis of survey responses indicates that significant differences exist between these two groups of firms. Specifically, new firms are found to have relied more heavily on debt financing than old firms. This suggests that new firms with high debt loads are likely not to survive and become old firms.

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This article is from Journal of Applied Business Research 5 (1989(: 15, doi: 10.19030/jabr.v5i2.6356.

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Sun Jan 01 00:00:00 UTC 1989
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