It seems that the portrait of the entrepreneur as begging, borrowing, and scavenging resources from friends and relatives is much more the picture of an inexperienced entrepreneur than one with experience. Across the board, inexperienced entrepreneurs are more resource starved and have less start-up capital.

Average Average
Equity Debt Source
(in 000s) (in 000s) of Equity*
Inexperienced entrepreneurs $80 $8.0 1.067
Experienced entrepreneurs $1,300 $480.5 1.286

*Personal sources = 1, Institutional sources = 2

* * *

Source: "Non-Financial Resource Acquisition Strategies in Technology-based New Ventures," by Mary Spann and Mel Adams, University of Alabama, Huntsville. The study examined the resource-acquisition strategies of 32 high-tech start-ups.

-- Alessandra Bianchi