Abstract

From earlier research we know that new businesses face a number of barriers of entry or so-called liabilities of newness. The different liabilities of newness are in turn assumed to make acquisition of resources difficult. At the same time, more recent research has highlighted the role of financial bootstrapping for handling finance and need for resources in new businesses. However, no empirical study has specifically examined the role of financial bootstrapping for handling liability of newness. Against this background the purpose of this study is to: (i) develop an operationalization of financial bootstrapping mentality, and (ii) analyze the relation between financial bootstrapping mentality and perceived liability of newness.

Share

COinS