entrepreneurs in an economy. We develop a dynamic occupational choice model with endogenous wealth and entry into entrepreneurship …. The model predicts that, with liquidity constraints, the probability of entering entrepreneurship is an increasing … predictions can be tested on cross-sectional data with exogenous variation in liquidity constraints (e.g. access to credit) and …

an impact evaluation-based approach on firm-level data from 42 African countries, we show that SMEs with access to formal …