Funding Entrepreneurship and Innovation with Debt Capital: The Relevance of Capital Structure

Authors

  • George Obeng University of Education, Winneba College of Technology Education, Kumasi

DOI:

https://doi.org/10.5195/emaj.2020.193

Keywords:

Capital Structure, Entrepreneurial Innovation, Funding Entrepreneurship, Agency Compensation

Abstract

Funding entrepreneurial innovation with debt capital, defiling capital structure optimality, to push an economy forward in emerging economies is the focus of this study. It is targeting potential investors through a survey to seek clarification on their understanding and knowledge on capital structure as to its threat to business and investment failure. It prevailed that, entrepreneurship is not adequately defined to identify the right funding sources. Investors understand capital structure and engage funds at proportions as dictated by necessity and their utilities as against strict adherence to theory. Entrepreneurs accept responsibility to be efficient and innovative for growth and success; failure is not assignable to any theoretical shortcoming. This is acknowledging the optionality of capital structure and the need to develop the debt market to support entrepreneurial drive to ease unemployment in society.

Author Biography

George Obeng, University of Education, Winneba College of Technology Education, Kumasi

Faculty of Business Education

Department of Accounting Studies Education

Lecturer

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Published

2020-09-23

Issue

Vol. 10 No. 1 (2020)

Section

Articles

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