Financing of entrepreneurial firms in Canada: some patterns

Miglo, A. (2020) Financing of entrepreneurial firms in Canada: some patterns. Administrative Sciences, 10(3), 50. (doi: 10.3390/admsci10030050)

Abstract

This article analyzes the patterns of financing for entrepreneurial firms in Canada. We compare the predictions of major theories of entrepreneurial finance and some more recent ideas (e.g., crowdfunding-related ideas/theories) with empirical evidence. Regression and correlation analyses were used to analyze the connections between firms’ financing choices (e.g., debt/equity ratio) and different variables such as firm age, firm owner origin, and the fraction of intangibles assets. We found strong evidence that the financing choices of entrepreneurial firms in Canada are consistent with flexibility theory and credit rationing theory. We did not find evidence that taxes play a significant role in explaining these choices. We also found that the likelihood of using crowdfunding is consistent with local bias ideas and internet access. We also provide an overview of literature related to entrepreneurial financing in Canada and discuss its major challenges and directions for future research.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Miglo, Dr Anton
• Authors: Miglo, A.
• College/School: College of Social Sciences > Adam Smith Business School > Accounting and Finance
• Journal Name: Administrative Sciences
• Publisher: MDPI
• ISSN: 2076-3387
• ISSN (Online): 2076-3387
• Published Online: 06 August 2020
• Copyright Holders: Copyright © 2020 The Author
• First Published: First published in Administrative Sciences 10(3): 50
• Publisher Policy: Reproduced under a Creative Commons License