Inci, Eren; Parker, Simon C. - Institute for the Study of Labor (IZA) - 2012
We study entrepreneurs' start-up financing from banks and local financiers. An informal network, whose membership … cannot be observed by outsiders, conveys the good signals it gets about the hidden types of network entrepreneurs to local … network even among its members. Because all projects have positive net value, it is efficient to finance them even in the …