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Owner-managed UK corporate start-ups: an exploratory study of financing and failure

Peel, Michael John 2016. Owner-managed UK corporate start-ups: an exploratory study of financing and failure. Entrepreneurship Research Journal 6 (4) , pp. 345-367. 10.1515/erj-2015-0031

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After highlighting the importance of small companies to the UK economy, new archival evidence is provided from an exploratory study which investigates the financing and failure of UK single owner-managed (OM) corporate start-ups. Relative to comparable US survey evidence, UK OM corporate start-ups rely very heavily on debt financing from inception, with minimal equity being injected by owners and with retained earnings making only a modest contribution to financing. Financial gearing is found to be an important determinant of failure after controlling for company-specific and owner characteristics. Interestingly, the results indicate that foreign-owned company start-ups are less failure prone. Based on the empirical findings of the study and that of extant research, a number of suggested avenues for future research are discussed.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Uncontrolled Keywords: corporate start-ups, owner-managed, financing, technical and legal failure, financial gearing
Publisher: De Gruyter
ISSN: 1932-0213
Date of First Compliant Deposit: 20 May 2016
Date of Acceptance: 14 March 2016
Last Modified: 04 Jun 2017 08:56

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