Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Businessweek Archives

New Businesses Rely More on Bank Loans and Credit Cards Than Friends and Family

Where do most new businesses turn to for startup capital? The common assumption is friends and family. But a recent report from the Kauffman Foundation shows most actually rely on personal bank loans and credit cards.

Using data from the Kauffman Firm Survey of nearly 5,000 firms from their birth in 2004 through the first three years of life, “The Capital Structure Decisions of New Firms” reports:

“Indeed, our calculations indicate that external debt financing—primarily through owner-backed bank loans and business credit cards—is the primary source of financing at a firm’s inception. The average amount of bank financing is seven times greater than the average amount of insider-financed debt; three times as many firms rely on outside debt as do inside debt.

blog comments powered by Disqus