Financing Mode and Enterprise Innovation: from the Respective of the Secondary Financing in a Start-up Enterprise
Department of Marketing, Shijiazhuang Information Engineering Vocational College, Shijiazhuang Hebei 050035
The enterprise nature has a close connection with its financing mode. An entrepreneur must distinguish between products and mainstream markets in order to make a positive profit in the competitive market, and he shall be in adequate control of the enterprise assets to execute this differentiation strategy. However, the start-up enterprise usually shall be invested with high capital, which makes the entrepreneur perform the secondary transformation to realize the standardization. Meanwhile the standardization may make the entrepreneur himself replaced by either external managers or internal staff. The paper shows that it generally makes equity financing more profitable than bond financing, and that the financing mode of an enterprise shall finally have an influence on its innovation ability.
Key words: enterprise financing / differentiation / standardization / innovation ability
© Owned by the authors, published by EDP Sciences, 2014
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