Exploring Entrepreneurial Financing Strategies in Early-Stage Ventures: Insights from Entrepreneurs in Perlis, Malaysia

Abstract

Entrepreneurial financing is a critical determinant of venture sustainability, especially during early stages when financial constraints are most severe. This study examines financing strategies of entrepreneurs in Perlis, Malaysia, through the lens of the Resource-Based View (RBV), highlighting how valuable, rare, inimitable, and non-substitutable resources support competitive advantage. Semi-structured interviews were conducted with five entrepreneurs aged 26 to 37, operating in agriculture, food and beverages, retail, and construction sectors. Thematic analysis revealed four strategies: reliance on personal savings and family support, utilization of government and banking institutions, leveraging networks and partnerships, and adoption of digital platforms for growth. Findings show that intangible resources, including family support, social networks, and digital capabilities, serve as crucial substitutes for financial capital and enable differentiation in competitive markets. Digital platforms also enhanced financial stability by expanding market reach. The study contributes to entrepreneurship literature by demonstrating how internal and intangible resources shape financing behavior, offering practical insights for entrepreneurs, institutions, and policymakers in small-market contexts.