Financing the Emerging Firm : Comparisons between PSED I and PSED II

This chapter explores whether certain kinds of financing that are both expected and acquired by entrepreneurs during the venture startup process might have an influence on the likelihood that these efforts will lead to ongoing ventures. We look at whether entrepreneurs expect and utilize their own personal funds for business creation, as well as whether entrepreneurs expect and acquire funds from sources external to themselves. We offer a novel way of looking at external funding sources by dividing external funding into two categories: monitored and unmonitored