THE INFLUENCE OF ENTREPRENEUR'S CHARACTERISTICS ON SHORT AND LONG TERM FINANCING OF SMALL FIRMS

摘要

This paper investigates how owner's characteristics determine the debt maturity of small firms. In particular, we investigate the influence of the entrepreneurial self-efficacy, strong and weak social ties, owner's gender, age, and educational level on short-term and long-term financing. We also investigate how debt maturity influences small firm growth. Research results show that the most important determinants of short-term financing of small firms are weak social ties, educational level, entrepreneurial self-efficacy, and strong social ties, while the most important determinants of long-term financing are weak social ties and entrepreneurial self-efficacy. The results also show that short-term and long-term financing are both significantly related to firm growth.