Source of Found

Scott & Irwin 2006, Edmiston 2007 once defined that there may be large amounts of money seeking a home, but it is looking for opportunities with proprietary intellectual capital, exceptional management, a market that is not what equity investors quaintly call ‘pre-revenue’and the possibility of a high return. Today, many groups of entrepreneurs, for a variety of reasons, still find it immensely difficult to raise the capital that they need.

It is true, nowadays, with the advantages of prompt decision-making, internal flexibility, easy of coordination, relatively low star-up cost compared with big business, just in 2010, there were over 125 million formal MSME (micro, small, and medium enterprise) established in over 132 economies according to International Finance Corporation (2010). However, the prosperity is along with the cruel reality in business battle filed. According to Bureau of Labor Statistics (BLS) in the U.S, 5 years after new small business were established, only 50, 49 and 47 percent of them started in 1995, 2000 and 2005, respectively, were still alive. And a frequent t cause of failure is undercapitalization or the lack of finance. Over decades, there has been much debate about whether a ‘financing gap’ really does exist toward the small business. Furthermore,Burns (2011) defined that the cost of lack of finance is often treaded by owners/ mangers as an obstacle to growth and the adequate of provision of fund is important to determine a small firm’s growth and making of its best potential. And membership survey from Federation of small business indicates four main source of found, including Bank overdraft (49%) of companies), own saving (42%), retained profit (36%) and personal credit cards (21%).However, choosing which type of source of fund by manger/ owner does not depend on one single factor, instead, factors like the purpose of using fund, term-duration of the fund, interest rate all play role in it. This paper is going to demonstrate...