Research On The Impact Of Entrepreneurial Self-efficacy On Financing Action Strategy In Technology-based Micro And Small Firms

In China, technology-based micro and small firms make contributions to economic growth, innovation and job creation. Obtaining sufficient financial resource is important for both establishment and development of technology-based micro and small firms. Unlike big firms, in micro and small firms, entrepreneurs’decision and behavior represent the firms’decision and behavior. Thus, it’s better to study the mechanism of technology-based micro and small firms’financing decision and behavior from the perspective of entrepreneurs.Entrepreneurs’characteristics and firms’s characteristics are critical determinants of technology-based micro and small firms’financing action strategy. Through scientific research methodology, this paper aims to analyze the relation among several variables, including entrepreneurial self-efficacy, technology-based micro and small firm characteristics, risk perception, financing action strategy and performance. The main results of this research are as follows:1. In the context of technology-based micro and small firms, entrepreneurial self-efficacy can be divided into five dimensions, such as marketing, innovation, management, risk-taking and financial control. With future analysis, Entrepreneurial self-efficacy has positive impact on technology-based micro and small firms’debt financing action strategy, while the impact on equity financing action strategy is not confirmed.2. Financing risk perception is one of important perceptual factors in the financing decision making process which plays different impact on debt and equity financing action strategy in technology-based micro and small firms. And financing risk perception plays the intermediary role between entrepreneurial self-efficacy and debt financing action strategy. Thus, we can explain the mechanism of entrepreneurial self-efficacy’s impact on debt financing action strategy from the perspective of financing risk perception.3. Technology-based micro and small firm characteristics, such as firm size, have the mediate effect on entrepreneurs’risk perception in financing decision making process, while the other firm characteristics, such as exploitative innovation and policy dependence, don’t have the mediate effect on above relationships.