Capital structure of faculty-entrepreneurs of the higher educational institutions

Abstract

The preference of faculty-entrepreneurs for capital structure matters for the success of their respective business. Using a descriptive research design, this study determined the level of capital structure in terms of equity and debt. It also investigated the correlation between equity and debt.A researcher-made questionnaire was used among forty-eight faculty-entrepreneurs of the Higher Educational Institutions in Capiz, Philippines. The mean revealed that the level of capital structure specific to equity and debt are both high. The Mann Whitney U test revealed no significant difference occurred in the capital structure in terms of equity and debt on the aforementioned demographics. Applying Spearman rho rank correlation, a significant relationship was seen between equity and debt. Business opportunities and business knowledge, and technical skills are essential to hit the accurate balance of equity and debt. The study recommends designing a financial plan for faculty-entrepreneurs.