We study the effects of credit shocks in a model with heterogeneous entrepreneurs, financing constraints, and a realistic firm size distribution. As entrepreneurial firms can grow only slowly and rely heavily on retained earnings to expand the size of their business in this set-up, we show that,...

We study the effects of credit shocks in a model with heterogeneous entrepreneurs, financing constraints, and a realistic firm size distribution. As entrepreneurial firms can grow only slowly and rely heavily on retained earnings to expand the size of their business in this set-up, we show that,...

The purpose of this contribution is to analyse the reasons why family portfolio entrepreneurs (Westhead & Wright 1998; Carter & Ram 2003) develop international activities instead of focusing on the national market after the financial crisis. The author claims that the market orientation is a...