Funding self-employment -- the role of consumer credit
This article investigates whether self-employed households use consumer loans -- in particular, instalment loans and overdrafts -- to finance business activities. Controlling for financial and nonfinancial household variables, we show that self-employed households particularly use personal overdrafts significantly more often than employee households. When analysing the correlation between consumer loan take-ups and consumption of self-employed in comparison to employee households, we find first evidence that overdrafts are used by self-employed to finance their business as well. This indicates that intermingling constitutes a financing strategy when regular business loans might not be accessible.
Year of publication: |
2013
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Authors: | Kneiding, Christoph ; Kritikos, Alexander S. |
Published in: |
Applied Economics. - Taylor & Francis Journals, ISSN 0003-6846. - Vol. 45.2013, 13, p. 1741-1749
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Publisher: |
Taylor & Francis Journals |
Saved in:
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