Funding sources in the pre-early stage of entrepreneurship: A study of the influencing factors (TEC Empresarial)

Summary

• The study analyzes survey data from 331 university students in Valencia, Spain, to examine funding source preferences at the pre-early stage of entrepreneurship.p.1
• Out of the total sample, 89.72% of respondents had not yet started a business project, while 47% reported intentions to start a business in the future.p.6
• Among the surveyed students, 61% were first-year students, 53% studied Business and Economics, and 83% attended Valencian public universities.p.6
• Within the sample, 21% of respondents reported having already started a business, while 79% were non-entrepreneurs.p.9
• Real entrepreneurs in the sample relied predominantly on non-institutional funding sources, and 71% of active entrepreneurs were male.p.9

Key insights

1. Students with stronger entrepreneurial intentions are significantly more likely to prefer private-sector funding sources over university-based financing.p.1
2. Authentic leadership traits do not show a statistically significant effect on students' funding source preferences at the pre-early stage.p.13
3. Female students exhibit a lower probability of selecting public and financial institutions as funding providers relative to universities.p.13
4. Institutional trust is a strong predictor of funding choices, as greater trust in universities significantly reduces the probability of seeking public or financial sector funding.p.13
5. International study experience has a positive effect on the probability of choosing public institutions over university-based funding.p.13
6. STEM students demonstrate a greater preference for university and financial institution funding, whereas Business and Economics students favor private or informal sources.p.10
7. A strong preference for low-interest loans significantly increases the likelihood of selecting public and private institutions over university funding.p.13