undercapitalization
1
8.2
- noun
- /ˌʌndərˌkæpɪtəlaɪˈzeɪʃən/
- Specialized
:
subcapitalización
- Emigration, increasing pauperization, and undercapitalization of industry savaged the social landscape.
Examples
-
Asked today to explain the breakup of their business, they will answer: undercapitalization, lack of bidding and general business experience, too much time spent on training, poor communication, different working styles, and sexism.
Fiction book (1990) -
This undercapitalization was largely responsible for PEMEX's inability to gear up production when world oil prices were high, and it can also be linked to some of the company's operational disasters.
Academic text (2001) -
Ed: The ships of finance sail upon roiling seas, with hidden shoals of junk debt, squalls of undercapitalization and tsunamis of the false value index.
-
The startup faced significant undercapitalization, which hindered its ability to expand into new markets.
-
Many businesses fail due to undercapitalization, making it essential for entrepreneurs to secure enough funding.
-
Investors are wary of companies suffering from undercapitalization as it often leads to operational challenges.
Synonyms
3
3.8
Not having enough money to run a service like a school or museum
1
6.1
Not spending enough money to keep, improve, or grow something
Antonyms
How Capitalized
- Specialized
- Specialized
8
6.1
- Specialized
1
8.2
Surface Forms
Morphology
undercapitalization = capitalization (transparent) = under + capital + ize + ation
Formed by productive prefixation 'under-' (insufficient) applied to 'capitalization' (provision of capital), so the resulting meaning is directly inferable.
Etymology
Undercapitalization comes from under- meaning 'not enough' or 'below' and capital meaning 'money for a business', so it describes a company that has 'too little money' to run or grow properly.