Although Small Business Investment Corporations (SBIC's) and venture Capital Firms (VC's) represent potential sources of long-term financing for small businesses, little is known about their investment behavior. The purpose of this article is to examine the major reasons why entrepreneurs are denied financing by these investment companies. By examining the funding rejection determinants of other businesses, the entrepreneur may better appraise his or her firm's chances for successful financing and evaluate how the business might be changed to improve funding possibilities.
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