ABSTRACT
New entrepreneurs have to create a resource base to invest in assets, fund business operations and support growth agendas: decisions regarding tangible resources, including finance, are critical. Many young entrepreneurs start with low levels of capitalization, and this has a major influence on the survival and growth prospects of their ventures. Existing empirical evidence provides support for the assertion that new ventures face difficulties in acquiring external finance, or the lack of financial support discourages many people from starting businesses. The entrepreneur’s personal financial capabilities are often limited, and, in the absence of internal cash generation, young entrepreneurs are unlikely to have the capacity to self-fund their ventures.
