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...

Examines sole proprietorships and the extent to which the decision to become an entrepreneur is influenced by inheritance size - i.e., access to capital. A group of approximately 3,000 people were identified through US Internal Revenue Service data, including estate tax returns to identify those...

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...