Small Business Financing: Differences Between Young and Old Firms

Authors

Alicia M. Robb, Federal Reserve Board of Governors

Abstract

Financial capital is necessary not only for business formation but also for business survival and expansion: its role is well documented in the literature. While venture capital and IPOs often make the popular press, the fact is most firms are unable to tap into this market. Instead, they depend on owner equity, other private equity, and debt financing. Survey data from the Federal Reserve Board allow an in depth look at the patterns of small business financing in the late nineties. Evidence suggests that debt financing for small businesses was extremely important, especially for young firms.

JEL Codes

G32, M13

Keywords

Financing, Firm Age, Access to Capital, Small Business, Small Firm

Recommended Citation

Robb, Alicia M. (2002) "Small Business Financing: Differences Between Young and Old Firms," Journal of Entrepreneurial Finance and Business Ventures: Vol. 7: Iss. 2, pp. 45-64.
DOI: https://doi.org/10.57229/2373-1761.1090
Available at: https://digitalcommons.pepperdine.edu/jef/vol7/iss2/5