This article looks at the relationship between the problems faced by small business owners and the funding sources used to solve those problems. Three problem types are identified: organizational systems, external, and sales and marketing problems. Based on these three problem types and the funding sources used by owners, the market is segmented into three groups using cluster analysis. Segment 1 is made up of firms with few problems. This segment uses the widest array of financial sources. Segment 2 has more problems than segment 3, but both need help with organizational systems resulting in the use of fewer sources.
G32, L25, M13
Firm , Small Firms, Small Business
Fuller, Barbara K. and Parker, Darrell F.
"An Investigation of the Types of Problems Faced by Small Firms and How They Affect the Funding Choices Made by Three Distinct Market Segments,"
Journal of Entrepreneurial Finance and Business Ventures:
3, pp. 71-91.
Available at: http://digitalcommons.pepperdine.edu/jef/vol12/iss3/5