Start-up Financing and Human Capital of Entrepreneurs (Japanese)

This paper identifies differences in start-up firms' performance according to the source of finance, and explores the relationship between the source of start-up financing and the personal attributes of entrepreneurs including human capital, thereby clarifying what types of entrepreneurs are using what type of financing source. As a result, it is found that firms raising funds from informal capital such as business sponsors including business angels and friends are more likely to grow. Meanwhile, with respect to the relationship between the source of start-up financing and the personal attributes of entrepreneurs, the analysis reveals that younger entrepreneurs are more likely to turn to family members and friends for funds, whereas experienced entrepreneurs tend to raise funds from business sponsors and banks. It is also found that entrepreneurs who hold more assets at start-up tend to use loans from banks.