Financing of Entrepreneurial Firms in Canada: Some Patterns

Miglo, Anton (2020) Financing of Entrepreneurial Firms in Canada: Some Patterns. Administrative Sciences, 10 (3). e50. ISSN 2076-3387

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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: Article
Additional Information: ** From MDPI via Jisc Publications Router ** History: accepted 31-07-2020; pub-electronic 06-08-2020. ** Licence for this article:
Identification Number:
31 July 2020Accepted
6 August 2020Published Online
Uncontrolled Keywords: Keywords, entrepreneurial finance in Canada, small business financing, capital structure, crowdfunding
Subjects: CAH15 - social sciences > CAH15-02 - economics > CAH15-02-01 - economics
Divisions: Faculty of Business, Law and Social Sciences > Birmingham City Business School
SWORD Depositor: JISC PubRouter
Depositing User: JISC PubRouter
Date Deposited: 10 Aug 2020 09:00
Last Modified: 22 Mar 2023 11:49

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