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The Financial Development of Portuguese Entrepreneurial Businesses
Abstract
Entrepreneurial firms commonly become family small businesses. This study aims to highlight the financial strategy underlying the development of smaller family companies. A brief introduction about the definition and role of the family business is followed by a review of the debate on the finance gap that puts constraints on the survival and long-term growth and prosperity of smaller privately companies. Evidence is drawn from a database of smaller firms with family owner-managers in Portugal, in order to determine their attitudes towards and experiences of venture capital and financing and other capital options. We conclude by discussing some tentative policy implications for regional development from the perspective of owner managers, service providers and policy-makers.
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