Angel Financing As A Business Start up Financing Option in South Africa
The following study was about business angels financing small business start-ups.It explored the aspect of starting up an entrepreneurial venture in which the entrepreneur seeks to secure start-upfinance from lenders,raising the various issues that are known to characterise this engagement between the entrepreneur and the lender.Using the phenomenological paradigm,the study sought to determine the awareness of small scale financing by entrepreneurs,to determine the most commonly used source of start-up business funding,to assess the extent to which business angel financing could be used to finance businesses and to determine the factors impacting the use of business angel financing in South Africa.From these objectives,the study also sought to determine the extent to which business angel networks could facilitate the financing of business startups.Small businesses invariably come up in different policy spheres as the main avenues to social and economic construction across national and regional lines.In line with this is the particular factor of gaining access to start up capital,which continues to emerge as a leading contributor to the success or failure of business start ups.Business angel finance is typically a ‘once-off’ early stage form of small firm financing compared to the more frequent later stage venture capitalist funding.Studies show that business angels represent an underutilised wealth creation mechanism when it comes to small firm start-ups as most business angels contribute expertise in addition to finance to the start-ups they get involved in.This brings valuable business insight to the commercialisation of a good business idea.The business angel network exposes a range of potentially viable business prospects to willing investors by facilitating the flow of information about entrepreneurs and their businesses,thereby eliminating ambiguity,information asymmetry andtransaction costs.To achieve a holistic approach to a phenomenon which appears to be relatively new in South African business circles,the study followed a qualitative approach in which two categories of populations were used,one of small business operators and the other of business angels in South Africa.In the study,20 small business operators and five business angels in Grahamstown were approachedusing the convenience and snowballing sampling methods respectively.Face-to-face semi-structured interviews were used as a data collection method and content analysis was used as a data analysis tool.The results indicated that very few small business owners are aware of angel financing.Those who knew about it rarely used it due to lack of adequate information.
Angel financing Angel networks Entrepreneurship
Zindiye Stanislous Sibanda Zenzo
Rhodes University, South Africa
国际会议
杭州
英文
190-220
2012-10-13（万方平台首次上网日期，不代表论文的发表时间）