| Summary: | How do financial strategies of entrepreneurial ventures evolve to overcome the asymmetrical distribution of information and mitigate risks associated with liabilities of newness?
The research sets out primarily to investigate how financial strategies evolve over the course of entrepreneurial venture growth; in particular investigate what financial strategies are used to mitigate challenges that arise as a result of legitimacy and information asymmetry, using a grounded theory qualitative approach.
As prescribed by the research methodology, nine entrepreneurial ventures were interviewed and extant literature on entrepreneurship was reviewed. At the end the research, the results arrived at, from the review of literature and survey clearly evidences the evolution of financial strategies in entrepreneurial ventures. This evolution enables the entrepreneurial ventures overcome issues that arise from the asymmetrical distribution of information and liabilities of newness.
It is thus posited that financial strategies of entrepreneurial ventures evolve. The evolution is primarily allows the entrepreneurial ventures access to sources of finance earlier impeded because of the asymmetrical distribution of information and the liabilities of newness.
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