This study examines the sources of venture financing of Chinese entrepreneurs in Wuhan, China. Based on a sample of 222, we found that Chinese entrepreneurs in Wuhan mainly rely on venture financing on their own or parties that are within their close social networks such as parents, relatives and friends. External financing sources are notably missing. We also found that entrepreneurs who use significantly more personal saving in venture financing are older (>37 years), female, with high school education or less, and have longer working experience. Entrepreneurs who are male with college or higher education, and who take time to build their business (more than two years) tend to receive significantly more bank loans. Young male entrepreneurs who have less working experience and with intention to create a business fast tend to rely more on financial support from their inner social network such as parents, relatives and friends. Implications and future research directions were provided.

JEL Codes

G32, O53


Venture Capital, China