Definition of undercapitalization in English:

undercapitalization

Pronunciation /-ˌkapətl-əˈzāSHən/

noun

See undercapitalize

‘Indeed, while undercapitalization historically has been cited as the leading reason for business failure, turnaround experts now lay the blame more on poor financial habits than on a simple lack of cash.’
  • ‘The number one reason small businesses fail is undercapitalization or inadequate cash flow.’
  • ‘University presses have been slower to adopt technology and systems analysis due to undercapitalization and a more conservative culture.’
  • ‘But they met with repeated frustration for reasons ranging from undercapitalization to a lack of marketing savvy to simple bad luck.’
  • ‘Many observers of traditional cooperative businesses believe that undercapitalization is their biggest problem.’