Entrepreneurial marketing and capital acquisition. (1st January 2012)

• Record Type: Journal Article
• Authors: Schulte, Reinhard
• Is Part Of: International journal of entrepreneurship and small business. Volume 16:Number 4(2012)
• Page Start: 471
• Page End: 484
• Publication Date: 2012-01-01
• Subjects: entrepreneurial marketing -- EM -- start-up finance -- entrepreneurial finance -- capital acquisition -- bank lending -- new venture funding; Entrepreneurship -- Periodicals; Small business -- Management -- Periodicals; 658.42105
• Languages: English
• ISSNs: 1476-1297

Abstract

The paper examines financing relationships between new ventures and their bank creditors. Defining this as an agency relationship, the paper develops a theoretical framework for an analysis of substantial problems in making financial contracts at reasonable terms for new ventures. Three basic types of problems emerge: differences in information, differences in management influence, and differences in the capital impact of a contract. As a conclusion, the implementation of financing marketing as a basic strategy for start-ups in acquiring and maintaining financial contracts is suggested. It encompasses all measures that serve to generate, to maintain, or to improve financing resources by aligning with the needs of actual or potential finance partners. Features of an entrepreneurial marketing needed to acquire financial resources are introduced, and its suitability to reduce financing obstructions is discussed.