The nature of association between investment decision and financial decision from an entrepreneurial point of view

This paper investigates empirically the association between financial decision and investment decision by considering the entrepreneurial process. We consider two modalities of financing in internal finance and external debts. We follow different steps of entrepreneurial business process in business model, business plan and nascent entrepreneurial firms. The logistic regression demonstrates that in the stage of elaborating the business model, investment decision is associated with financial decision in financial debts. Nevertheless, when considering the stage of preparing the business plan, financial decision in internal funds is associated with investment decision. Nevertheless, at the inception stage, internal funds are negatively associated with investment decision leading to the lack of financial constraints for novice American entrepreneur.