SMITH, D., 2009. Financial bootstrapping and social capital: how technology-based start-ups fund innovation. International Journal of Entrepreneurship and Innovation Management, 10 (2).
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Innovation requires more than technological expertise. It is a time consuming activity requiring access to a range of resources including finance. Yet, innovators involved in start-ups rarely have direct access to significant financial resources. Instead, they turn to a variety of forms of financial bootstrapping. Defined as access to resources not owned or controlled by the individual innovator, bootstrapping involves imaginative and parsimonious strategies for marshalling and gaining control of resources. This paper reports on research into bootstrapping using case studies, drawn from biographies of well-known innovators. The study found that bootstrapping was widespread and innovators showed great ingenuity in obtaining finance without recourse to conventional financial institutions. Not only were ranges of bootstrapping techniques employed, the study also provided valuable insights into the importance of social capital, in the form of networks of friends, colleagues and other contacts, in providing innovators with access to bootstrapping finance.
|Item Type:||Journal article|
|Publication Title:||International Journal of Entrepreneurship and Innovation Management|
|Publisher:||Inderscience Enterprises Ltd|
|Place of Publication:||London|
|Rights:||Copyright © 2009 Inderscience Enterprises Ltd.|
|Divisions:||Schools > Nottingham Business School|
|Depositing User:||EPrints Services|
|Date Added:||09 Oct 2015 09:55|
|Last Modified:||19 Oct 2015 14:24|
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