Unveiling the Influence of Business Angels on New Venture Success: Exploring the Dynamics of Entrepreneurial Finance

Abstract

The success of new venture is most challenging in Pakistan. Since, in Pakistan, 90% of startups could not get success. Every year, some 300 businesses are formed, but only 10% of them go on to succeed. The purpose of this study is to test the relationships between business angel, entrepreneurial finance, and new venture performance in the SME’s working in Bahawalpur, Pakistan. By using a survey questionnaire, 280 responses were used in data analysis. This study highlighted the positive effect of business angels on venture performance and entrepreneurial finance. Entrepreneurial finance has positive effect on new venture performance. This study provides a theoretical framework for understanding the relationships between business angels, entrepreneurial finance, and new venture performance which is a unique contribution in the field of venturing.