noun
undercapitalization; inadequate capital
Financial term referring to a company having insufficient capital relative to its operations or risk.
過少資本の企業は、不況時に倒産しやすい。
Undercapitalized companies are prone to bankruptcy during a recession.
資本不足 is a more general term for capital shortage, while 過少資本 specifically refers to the state of being undercapitalized, often in a legal or financial analysis context.
Compound of 過少 (kashō, 'too little, insufficient') and 資本 (shihon, 'capital').