Investigates whether US entrepreneurs are undercapitalized and why some individuals survive as entrepreneurs while others do not. The hypothesis posited is that, if entrepreneurs are unable to borrow enough to attain their profit-maximizing levels of capital, then entrepreneurs with enough...

This paper analyzes the role of liquidity constraints in the formation of new entrepreneurial enterprises. The basic empirical strategy is to determine whether an individual's wealth affects the probability of becoming an entrepreneur, and the conditional amounts of depreciable assets, ceteris...

This paper analyzes the role of liquidity constraints in the formation of new entrepreneurial enterprises. The basic empirical strategy is to determine whether an individual's wealth affects the probability of becoming an entrepreneur, and the conditional amounts of depreciable assets, ceteris...