Informal Networks and Start-Up Entrepreneurs in Spain : Networking Other Entrepreneurs and Angel Investors

This paper contributes, by one way, examining the impact of informal networks such as personally knowing other entrepreneurs and having accessed to business angel investors upon start-up entrepreneurs in Spain. And, by other way, a pseudo-panel approach is used with micro data from the Spanish Global Monitor Entrepreneurship adult population survey over the period 2006-2009. This technique overcomes limitations found when used cross-sectional data. Moreover, a short review of literature using cross-sectional data is described in order to identify how these data were used. Results show that informal networks are important for start-up entrepreneurs. Personally knowing other entrepreneurs and have access to angel investors have a positive relationship with start-up entrepreneurs. Also, it is found that start-up entrepreneurs in cohorts 49-58 and 59-64 “do better” than younger ones. Furthermore more some implications are highlighted