Keywords
micro finance, funding gap, seed financing
Abstract
We address the role microfinance institutions (MFIs) play in funding entrepreneurial ventures and present a distinction between the types of entrepreneurs that seek MFI and traditional venture funding. We argue that microfinance can serve successfully as s eed financing for microentrepreneurs in under developed economies around the world. By comparing bootstrapping and private equity seed financing in developed economies to microfinance seed financing in impoverished economies, we show that the different ent repreneurial characteristics in the two economies have similar funding gaps but are solved with different sources of funding.
Original Publication Citation
Does Microfinance Fill the Funding Gap for Microentrepreneurs? A Conceptual Analysis of Entrepreneurship Seeding in Impoverished Nations, with Sunshine Cardell and Warner Woodworth, International Business Research, Vol. 8, No. 5, May 2015, 30-42.
BYU ScholarsArchive Citation
Brau, James C.; Cardell, Sunshine N.; and Woodworth, Warner P., "Does Microfinance Fill the Funding Gap for Microentrepreneurs? A Conceptual Analysis of Entrepreneurship Seeding in Impoverished Nations" (2015). Faculty Publications. 9185.
https://scholarsarchive.byu.edu/facpub/9185
Document Type
Peer-Reviewed Article
Publication Date
2015
Publisher
International Business Research
Language
English
College
Marriott School of Business
Department
Finance
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