Definition of undercapitalization in US English:

undercapitalization

(British undercapitalisation)

noun

  • See undercapitalize

    • ‘Many observers of traditional cooperative businesses believe that undercapitalization is their biggest problem.’
    • ‘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.’
    • ‘But they met with repeated frustration for reasons ranging from undercapitalization to a lack of marketing savvy to simple bad luck.’
    • ‘University presses have been slower to adopt technology and systems analysis due to undercapitalization and a more conservative culture.’

Pronunciation

undercapitalization

/-ˌkapətl-əˈzāSHən/