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The Hidden Costs of Borrowing from Family and Friends
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The Hidden Costs of Borrowing from Family and Friends
When entrepreneurs lack the funds to launch their ventures, they often turn to the people closest to them—family and friends. This kind of support can seem ideal: the money is easier to access and comes with fewer strings attached than formal investments. But new research from Indiana University’s Kelley School of Business reveals a potential downside: borrowing from loved ones may lead entrepreneurs to play it too safe. Causing caution The stud…
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