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Vanderbilt Law Review

First Page

1683

Abstract

It is imperative that a definitive study of small business include a discourse on financing.' Generally, the first consideration of a prospective entrepreneur is the availability of sufficient capital, borrowed or paid-in, to support the activity of his business. Of paramount importance, however, to those who attempt to assess the prospects of survival and future growth of a company is the recognition that all considerations are secondary to the human factor. The careful banker, while requiring collateral to secure a loan, depends on his estimation of the applicant's personality traits. While the adequacy of capital contributes to the success of a business, without alert, imaginative,and competent management, the chances for survival are slight. In essence the problems of financing a small business are problems of personalities, mutual confidence, and capacity; they are not merely problems of percentages, figures or working capital.

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