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• Technical Note | HBS Case Collection | October 2013 (Revised April 2018)

  Non-Equity Financing for Entrepreneurial Ventures

  Joan Farre-Mensa, Ramana Nanda and Piyush Jain

  Young, and particularly high-growth ventures often need to raise significant external finance, since their internal cash flow is usually insufficient to support the investments needed to grow. Although raising equity from venture capital or angel investors is the most well-known source of external finance for high-growth ventures, many entrepreneurs, particularly small business owners, rely on debt and other non-equity sources of capital to finance their ventures, either because equity capital is not available to them or because they want to avoid the ownership dilution and governance constraints associated with equity investments.

  This note focuses on these non-equity sources of financing for entrepreneurs, paying particular attention to how the emergence of new technologies in risk assessment have expanded their availability for young firms.

  Keywords: entrepreneurial finance; finance; Entrepreneurship; Finance; Financial Services Industry;

  Citation:

  Farre-Mensa, Joan, Ramana Nanda, and Piyush Jain. "Non-Equity Financing for Entrepreneurial Ventures." Harvard Business School Technical Note 814-005, October 2013. (Revised April 2018.)  View Details

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• Working Paper | HBS Working Paper Series | 2018

  Immigrant Entrepreneurship in America: Evidence from the Survey of Business Owners 2007 & 2012

  Sari Pekkala Kerr and William R. Kerr

  We study immigrant entrepreneurship and firm ownership in 2007 and 2012 using the Survey of Business Owners (SBO). The survival and growth of immigrant-owned businesses over time relative to native-founded companies is evaluated by linking the 2007 SBO to the Longitudinal Business Database (LBD). We quantify the dependency of the United States as a whole, as well as individual states, on the contributions of immigrant entrepreneurs in terms of firm formation and job creation. We describe differences in the types of businesses started by immigrants and the quality of jobs created by their firms. First-generation immigrants create about 25% of new firms in the United States, but this share exceeds 40% in some states. In addition, Asian and Hispanic second-generation immigrants start about 6% of new firms. Immigrant-owned firms, on average, create fewer jobs than native-owned firms, but much of this is explained by the industry and geographic location of the firms. Immigrant-owned firms pay comparable wages, conditional on firm traits, to native-owned firms, but are less likely to offer benefits.

  Keywords: entrepreneurship; immigration; job creation; employee benefits; owner demographics; Exports; outsourcing; Entrepreneurship; Ownership; Demographics; Jobs and Positions; Compensation and Benefits; United States;

  Citation:

  Kerr, Sari Pekkala, and William R. Kerr. "Immigrant Entrepreneurship in America: Evidence from the Survey of Business Owners 2007 & 2012." Harvard Business School Working Paper, No. 18-098, April 2018.  View Details

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• Supplement | HBS Case Collection | March 2018

  1366 Technologies: Scaling the Venture (B)

  Joseph B. Lassiter III and Ramana Nanda

  Citation:

  Lassiter, Joseph B., III, and Ramana Nanda. "1366 Technologies: Scaling the Venture (B)." Harvard Business School Supplement 818-116, March 2018.  View Details

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