Small Business Capitalization Patterns
Van Auken, Howard
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.
This article is from Journal of Applied Business Research 5 (1989(: 15, doi: 10.19030/jabr.v5i2.6356.