The Impact of Owner and Firm Characteristics on External Capital Acquisition at Start-up: Empirical Evidences from Swedish Data

摘要

The present study investigates whether owner and firm characteristics influence the use of external financing sources among Swedish small-owned firms at start-up stage. Several methods, including multinomial binary logistic regression have been employed to analyse a unique and comprehensive firm-level database, consisting of 2,814 firms gathered through interviews. The results show that three variables, i.e., loans from family members and friends, bank debt and funding from angel investors, are significant in distinguishing between Swedish native and immigrant-owned firms in the acquisition of financial sources in start-up. In addition, immigrant-owned firms tend to relay more on informal financial sources e.g. loan from family member, friends and angel investors, and less on bank loan. Furthermore, whereas, ethnicity influences the change of all these four variables significantly, gender merely affects loans from family members. Other variables, such as the owners’ age, prior experience in business, education, having an additional job beside one’s own business, the amount of personal start-up capital and firm size, as well as legal form and industry affiliation are partly important to explain the acquisition use of external capital at start-up stage.