Author Affiliation, Ana.
An Empirical Investigation into the Financing of Family - Owned Business in Jamaica
Social and Economic Studies.
Date of Publication
This study reports on an empirical investigation into how small, familyowned businesses in Jamaica raise financing for business start-up and business growth. Access to finance has been one of the most critical issues affecting the growth and survival of these firms in the Jamaican economy but very little empirical work has been done in this area. This study uses survey data collected from over 250 family-owned enterprises from all the industrial sectors in the economy and analyzed, using multivariate statistical techniques. The results revealed that internal sources of financing are usually used to finance business start-up while external sources are used to finance business growth. However, these external sources are accessed as firms become larger in size. The management implication is that if small, family-owned businesses are to take advantage of business opportunities, they will have to grow larger in order to access external financing as internal financing is generally very limited.....