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Turning visions into reality under limitations of financial resources

Nopsuwanwong, Supaduang (2011)
Department of Business Administration
Abstract
In order to turn business ideas into ventures that create value and wealth, several types of resources are required. They can be divided into social, human, organizational, technical, and financial resources. Among all of these, finance is considered one of the most essential resources to acquire because it enables the acquisition of additional human, physical and technological resources later on (Bhide´, 2000). In other words, financial capital plays a prominent role due to the fact that it can be used to develop or expand other resources. Obtaining external finance to start a new business is one of the most challenging tasks. However, there are other means for entrepreneurs to obtain resources despite financial constraints in the... (More)
In order to turn business ideas into ventures that create value and wealth, several types of resources are required. They can be divided into social, human, organizational, technical, and financial resources. Among all of these, finance is considered one of the most essential resources to acquire because it enables the acquisition of additional human, physical and technological resources later on (Bhide´, 2000). In other words, financial capital plays a prominent role due to the fact that it can be used to develop or expand other resources. Obtaining external finance to start a new business is one of the most challenging tasks. However, there are other means for entrepreneurs to obtain resources despite financial constraints in the start-up period. They can engage in the concept known as ‘financial bootstrapping’ which mainly makes use of internally generated funds. The purpose of this paper is to investigate how a new and small start-up obtained resources despite financial constraint. The possible methods, benefits, and drawbacks are presented based on the frame of reference as well as my personal viewpoints. bootstrapping methods can be used by start-up ventures at the early stage in order to gain other resources such as external finance needed to fund additional growth later on. Also, the skills to be successful bootstrappers can be developed over time, especially for those socially-oriented techniques. The use of financial bootstrapping differ depending on the stage of firm. The size of firms and business sector have an impact on how the bootstrapping methods will affect firms’ performance and operations. (Less)
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author
Nopsuwanwong, Supaduang
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Management of enterprises, resource constraints, bootstrapping, start-ups, Företagsledning, management
language
Swedish
id
2004331
date added to LUP
2011-06-03
date last changed
2012-11-12 11:28:05
@misc{2004331,
  abstract     = {In order to turn business ideas into ventures that create value and wealth, several types of resources are required. They can be divided into social, human, organizational, technical, and financial resources. Among all of these, finance is considered one of the most essential resources to acquire because it enables the acquisition of additional human, physical and technological resources later on (Bhide´, 2000). In other words, financial capital plays a prominent role due to the fact that it can be used to develop or expand other resources. Obtaining external finance to start a new business is one of the most challenging tasks. However, there are other means for entrepreneurs to obtain resources despite financial constraints in the start-up period. They can engage in the concept known as ‘financial bootstrapping’ which mainly makes use of internally generated funds. The purpose of this paper is to investigate how a new and small start-up obtained resources despite financial constraint. The possible methods, benefits, and drawbacks are presented based on the frame of reference as well as my personal viewpoints. bootstrapping methods can be used by start-up ventures at the early stage in order to gain other resources such as external finance needed to fund additional growth later on. Also, the skills to be successful bootstrappers can be developed over time, especially for those socially-oriented techniques. The use of financial bootstrapping differ depending on the stage of firm. The size of firms and business sector have an impact on how the bootstrapping methods will affect firms’ performance and operations.},
  author       = {Nopsuwanwong, Supaduang},
  keyword      = {Management of enterprises,resource constraints,bootstrapping,start-ups,Företagsledning,management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Turning visions into reality under limitations of financial resources},
  year         = {2011},
}