Financial Theories of Entrepreneurship

What are the financial theories of entrepreneurship?

Liquidity theory posits that access to capital is the key to entrepreneurship.
Pecking order theory posits how entrepreneurs decide on modes of financing.

Stewardship theory proposes positive assumptions about entrepreneur governance.
Signaling theory explains how entrepreneurs inadvertently communicate with stakeholders.
Agency theory starts with negative assumptions about entrepreneurs and seeks to govern them.
Real options theory looks at entrepreneurship from a gambler's perspective.
Information asymmetry helps to explain the bargaining power of entrepreneurs in their relationships with stakeholders.