The Paradox of Investment Timing in Small Business:Why Do Firms Invest When It Is Too Late?


This article aims to tell the “gamble of resurrection” story for small owner-managed firms. Analyzing a set of private firms in Vietnam, we find that for firms that are less financially constrained, an increase in the degree of financing constraints leads to a decrease in the use of entrepreneurs’ personal capital. However, once critical value of constraints is reached, this relationship reverses. Specifically, deferring investments that would otherwise be in time may result in firms’ experiencing such serious financial distress that the entrepreneurs will invest their personal capital to try and maintain their firms’ survival even though it may be too late.

Publication DOI:
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
Additional Information: This is an Accepted Manuscript of an article published by Taylor & Francis Group in Journal of Small Business Management on 14 Oct 2020, available online at:
Uncontrolled Keywords: Cash flow,financial constraints,investment behavior,personal capital,small business,General Business,Management and Accounting,Strategy and Management,Management of Technology and Innovation
Publication ISSN: 1540-627X
Last Modified: 16 Jul 2024 07:17
Date Deposited: 27 Jul 2020 07:40
Full Text Link:
Related URLs: https://www.tan ... 78.2020.1816436 (Publisher URL)
http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2020-10-14
Published Online Date: 2020-10-14
Accepted Date: 2020-07-01
Authors: Nguyen, Bach (ORCID Profile 0000-0003-1527-7443)
Le, Chau
Vo, Vinh



Version: Accepted Version

| Preview

Export / Share Citation


Additional statistics for this record