We explore the 20% of all nascent entrepreneurs in the U.S. who attempted to start a business with financial capital of $500 or less. We label this group as “no + low” (N+L) financed businesses. We account for the variation in human and social capital of these nascent entrepreneurs and the types of N+L financed businesses started vis-à-vis “normal” or high financed businesses. Prior studies have found that an entrepreneur’s human and social capital can be a substitute for financial capital in existing firms. Our study addresses a developing social-capital-centered theory of entrepreneurship by exploring the impact of social capital on a nascent entrepreneur’s use of resources and success in starting a firm.
Frid, Casey J.; Wyman, David M. D.; and Gartner, William B.
"CHARACTERISTICS OF “NO + LOW” FINANCED BUSINESSES (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 34
, Article 3.
Available at: http://digitalknowledge.babson.edu/fer/vol34/iss3/3