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

Peel, Michael John ORCID: https://orcid.org/0000-0002-7444-390X 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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Abstract

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:	05 May 2023 18:54
URI:	https://orca.cardiff.ac.uk/id/eprint/87952

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