Funding sources in the pre-early stage of entrepreneurship: A study of the influencing factors.
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This study examines the factors that shape funding source preferences among university students at the pre-early stage of entrepreneurship, with particular attention to the role of universities as potential funding providers. While prior research has extensively analyzed how universities foster entrepreneurial intentions and capabilities, less is known about the role of universities in influencing the assessment of alternative sources of finance by entrepreneurs. Using survey data for 331 university students from Valencia (Spain), this study analyzes how entrepreneurial intentions, authentic leadership traits, and gender affect preferences across five funding categories: universities, public institutions, private institutions, financial institutions, and informal networks such as family and friends. The results of the multinomial logit model show that students with stronger entrepreneurial intentions are significantly more likely to choose private-sector funding sources over university-based financing, while authentic leadership traits do not influence funding preferences. Also, female students are more likely to select private institutions rather than universities as funding providers. Overall, the findings suggest that universities are not perceived as primary financial actors by nascent entrepreneurs, despite their central role in entrepreneurship education and support. These results highlight a credibility gap between universities’ strategic mission in fostering entrepreneurship and their perceived relevance in early-stage entrepreneurial finance, suggesting the need for institutional initiatives that strengthen universities’ visibility and legitimacy as funding partners.
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