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Setting up a business and funding sources

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  • Staniewski, Marcin W.
  • Szopiński, Tomasz
  • Awruk, Katarzyna

Abstract

Small and medium-sized enterprises (SMEs) are the driving force of the whole economy. An analysis of the data collected during the interdisciplinary research in 2008–2012 on a sample of 345 entrepreneurs operating in Poland shows that a statistically significant correlation exists between the recitals that take up economic activities and the choice of the source of the initial capital. People who indicate financial motives often take up economic activities using their own funding resources, or loans, credits—the funds that they had originally earned or they will have to earn to pay in the future. The analysis shows that those showing non-financial motives have used non-refundable EU funds. The multidimensional scaling analysis of funding sources shows that people who indicate financial motives diverge slightly different from groups of financial sources than those that indicate non-financial motives. People who undertake business activity to generate greater earnings/accumulate wealth are more likely to use their own capital or repayable funds. The results of the present study should be helpful in re-considering the European Union procedures for granting a financial non-refundable aid for people.

Suggested Citation

  • Staniewski, Marcin W. & Szopiński, Tomasz & Awruk, Katarzyna, 2016. "Setting up a business and funding sources," Journal of Business Research, Elsevier, vol. 69(6), pages 2108-2112.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:6:p:2108-2112
    DOI: 10.1016/j.jbusres.2015.12.016
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    References listed on IDEAS

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    5. D'Anghela, Mariapia & Murmura, Federica, 2020. "The Impacts of EU Support Programs on SMEs: A Literature Review," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2020), Virtual Conference, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Virtual Conference, 10-12 September 2020, pages 353-364, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
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