Network Strategy and Access to Business Finance

Abstract

This article explores the significance of the nature of networks developed by entrepreneurs in accessing business finance. On the basis of qualitative data generated through case studies of Indian entrepreneurs in Information and Communication Technology industry, this article reports on the experience of entrepreneurs in accessing different types of business finance such as family funding, angel investment, venture capital and bank loan. Findings suggest that network plays an important role in facilitating access to business finance by building development of trust between entrepreneurs and investors. However, network acts as a successful facilitator only if other requirements for making a financial investment are favourable.

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