The impact of financing motivation on development strategy orientation of entrepreneurial firms

摘要

Based on the theoretical analysis of the relationship among financing motivation, financing choice and development strategy orientation of entrepreneurial firms, this paper puts forward a proposition on the impact of financing motivation on development strategy orientation of entrepreneurial firms, which is then tested empirically using survey data from massive Chinese entrepreneurial firms. The research finds that wealth accumulation motivation and self-determination motivation are two main motivations that influence financing choice of entrepreneurial firms. Driven by the two main financing motivations, entrepreneurial firms primarily choose exogenous equity financing and exogenous debt financing. Financing choice affects development strategy orientation of entrepreneurial firms. Exogenous equity financing leads to entrepreneurial firms' active development strategy orientation while exogenous debt financing leads to their steady development strategy orientation.