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This paper considers a region in which some would-be entrepreneurs are in the network of a hub firm and the rest stand alone. Project ideas come in two types: good and not-so-good. Entrepreneurs need to borrow from banks or local financiers to start their projects. Local financiers receive a...
Persistent link: https://www.econbiz.de/10014055013
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 financiers, which are then reflected in different loan...
Persistent link: https://www.econbiz.de/10013111216
We empirically explore the importance of networks in the match formation of startups and investors. Using a massive network of connections from the entrepreneurial finance setting in California, we estimate a matching model introducing network distance as a key determinant of the value of a...
Persistent link: https://www.econbiz.de/10012968861
In this paper we explore the relationship between the individual decision to become anentrepreneur and the institutional context. We pinpoint the critical roles of property rights andthe size of the state sector for entrepreneurial activity and test the relationships empirically bycombining...
Persistent link: https://www.econbiz.de/10009360645
In this study, we aim to assess the relevance of credit composition to entrepreneurship empirically in light of the … composition on entrepreneurship in 54 high- and middle-income economies from 2001 to 2016. To capture credit composition, we … entrepreneurship. The results indicate that credit composition is important for both high- and middle-income economies, but the …
Persistent link: https://www.econbiz.de/10014496880
One in three deals in the early-stage financing market involves an investor and founder from the same alma mater. We show that founders' connections to early-stage investors through shared education networks are more important than school academic quality or shared geography in facilitating...
Persistent link: https://www.econbiz.de/10013313387
Finance for micro, small, and medium-sized enterprises (MSMEs) has been a concern for all stakeholders including entrepreneurs, financial institutions, and government organizations. The key objective of the study was to identify various challenges faced by MSMEs in sourcing of finance during...
Persistent link: https://www.econbiz.de/10011522010
Using a recently developed method of causal inference, this paper estimates the additional up-front loan origination costs that a small business can expect to pay when it first borrows from a new lender. I compare firms that borrow from a previously unused financial institution with firms that...
Persistent link: https://www.econbiz.de/10012957943
There have been significant changes in the financing of early-stage innovative companies since the beginning of this decade. The importance of institutional venture capital funds' investments declined in financing startups and early-stage ventures. At the same time, alternative sources of...
Persistent link: https://www.econbiz.de/10012290301
as capitalists in the banking sector, since it is shown that entrepreneurship has a positive impact on banking …
Persistent link: https://www.econbiz.de/10013153485