Definition of undercapitalization in English:


Pronunciation /-ˌkapətl-əˈzāSHən/


(also British undercapitalisation)

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.’