This could be the year investors get real

01/8/2009 | Small Business Trends

Outside financing for entrepreneurial ventures will continue to be scarce this year, writes Scott Shane of Case Western Reserve University, and the government's focus on big-business bailouts won't help matters any. Instead, companies will survive through bootstrapping and 401(k) cash-outs. One bit of good news: Investors are beginning to lower their expectations of outsized returns, meaning that eventually the cash will flow to companies that have no intention of being the next Google.

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