Review of Effects of Internal and External Factors on Selection of Financing Strategies by New Technology Ventures

Ali Naeej Haghighi,Parviz Saeidi

doi:10.30699/ijf.2020.121647

Abstract

New technology ventures currently play a key role in the economic performance of countries. Financing methods are among strategic issues facing entrepreneurs for launching a business, which must be reviewed by researchers and policymakers of finance and investment; thereby new technology ventures are of importance in the economic growth trend and sustainable development. This study is aimed at reviewing the effects of internal and external factors on the selection of financing strategies by new technology ventures. Statistical society of the present research includes start-up companies. Data collection method includes library research and field research. Descriptive-practical research method and data analysis tools, Delphi techniques and experts' panel, and regression analysis. Firstly, upon designing the preliminary questionnaire and distribution thereof among academic experts and new technology ventures, totaling 29, main and secondary elements were extracted based on the information received from the experts. Then, at the next stage, for the explanation of the designed model, the final questionnaire of research, incl. general and specialized questions are prepared and drawn up, and upon distribution of the final questionnaire among the statistical sample, comprising start-up companies, the stated questionnaire was distributed among 384 companies. Research results indicate a positive and significant effect of internal variables of companies concerning the role of intermediary variables on traditional and new financing methods. Notably, external variables of companies have a significant effect on traditional and new financing methods through intermediary variables. These results indicate the importance of internal and external factors of companies on the determination of financing strategy of start-up companies in Iran.

Highlights

Creative ideas are the force driving technological advances, which are formed in the mind of innovators and inventors, and upon follow-up of entrepreneurs, these ideas will result in the creation of a new business
The main objective of the present research is the review of the effects of external factors and internal factors on the selection of financing strategies of startup companies
Table No 7 representing the results of the related regression test of research hypotheses, reveals that solely role of the government and business intelligence have impacted on the financing strategies of new technology ventures in Iran, creativity and innovation and social capital do not have a significant impact on the dependent variable of financing strategies of new technology ventures in Iran

Summary

Introduction

Creative ideas are the force driving technological advances, which are formed in the mind of innovators and inventors, and upon follow-up of entrepreneurs, these ideas will result in the creation of a new business. Results of their research indicated outstanding advantages of startups, in emerging industries, upon signaling strategies by a governmental organization This matter was related to the time that they made attempts to pass through stages of organizational cycles. Adopting an optimization strategy for concurrent supply chain finance schemes, Gelsominoa et al, (2018), found working capital requirements and the finance cost to play a key role in evaluating the benefits of concurrently adopting multiple supply chain finance schemes. They found the funding limits of these schemes to significantly influence the relevance of the strategies, as strict limits increased the relevance of having alternative schemes available to onboard suppliers. They solved a numerical example on the basis of an actual application to emphasize the management relevance of the model

Objectives

Methods

Findings

Conclusion