Pragmatic Analysis on Relationship Between Innovation and Finance – A Study Related to Selected Startup Entrepreneurs

The study focuses to examine the associations between internal and external financing with product and process innovation in selected start-ups by adopting a web-based survey among startup entrepreneurs. A total of 102 valid responses were received from a sample of 300 randomly selected startup firms. The analysis of the collected data revealed that there exists a positive association between internal sources of finance and the extent of firm innovativeness. Firms which depend on internal sources are more likely to innovate than those who do not prefer internal sources substantially. The findings of this paper hold significant importance for all stakeholders, including policymakers, educators, researchers, entrepreneurs, and aspiring entrepreneurs. Overall, this study contributes to the existing literature by highlighting the critical role of internal financing in enhancing the innovativeness of start-ups, providing valuable insights for both practice and policy.