Exploring Financing Strategies of Entrepreneurs in UK Business Ventures: A Qualitative Study
Abstract
Entrepreneurs play a pivotal role in introducing novel ideas and concepts to the market, addressing gaps in existing industries, and even forging entirely new market segments. Given the dynamic landscape of the UK business sector, an exploration of the financial methodologies employed by entrepreneurs becomes imperative, particularly concerning their impact on business ventures within the UK context. This study draws upon several established theories, including the Pecking Order Theory, Trade-off Theory, Behavioural Finance Theory, and Agency Theory, to underpin its empirical investigation and formulate research objectives. Employing a qualitative research approach, this study encompassed a diverse array of businesses spanning various UK industries, encompassing technology, retail, finance, manufacturing, hospitality, real estate, creative industries, and renewable energy. Primary data sources were harnessed, ensuring industry representation through a meticulous Stratified Sampling technique. Data collection methods encompassed semi-structured interviews and the administration of a questionnaire. The study used thematic analysis and Multiple Regression Analysis to analyze data on the relationship between Funding Sources and business management. Results showed that risk-focused businesses make judicious capital allocation decisions. In conclusion, this study discerned that the financial decision-making processes wield a substantial influence on entrepreneurs in the UK and that the challenges confronted by entrepreneurs profoundly impact their funding sources. Furthermore, the study corroborated that the strategies employed by entrepreneurs significantly affect their exposure to financial risks. This study recommends comprehensive risk management strategies, capital allocation decisions, and strategic investment for entrepreneurs to navigate challenges effectively, considering trade-offs and enhancing market competitiveness.
Keywords
Entrepreneur, Behavioural, Competitiveness, Diversification, Liquidity, Financial strategy
Citations
IRE Journals:
Michael Akintomiwa Oyedeji
"Exploring Financing Strategies of Entrepreneurs in UK Business Ventures: A Qualitative Study" Iconic Research And Engineering Journals Volume 7 Issue 6 2023 Page 449-460
IEEE:
Michael Akintomiwa Oyedeji
"Exploring Financing Strategies of Entrepreneurs in UK Business Ventures: A Qualitative Study" Iconic Research And Engineering Journals, 7(6)
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