ACQUISITION OF CAPITAL BY WOMEN ENTREPRENEURS: PATTERNS OF INITIAL AND REFINANCING CAPITALIZATION

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Abstract
This paper reports on a nationwide study of the characteristics of initial and subsequently acquired capital of 123 (a response rate of 31.75 per cent) women-owned businesses. The issues examined included combination and sources of capital, and requirements for obtaining debt capital. The data were examined relative to type of firm and level of borrowing. The average start-up financing mix was 76.4 per cent equity and 23.6 per cent debt. Most initial equity capital was obtained from personal sources. Initial debt capital was obtained primarily from lending institutions. Shortterm borrowing was common, and almost 20 per cent of the women-owned firms refinanced both the principal and interest of the short-term loan at maturity. New long-term capital was acquired primarily from lending institutions.