The issue of the importance of financial constraints in hampering the birth of new entrepreneurs is still debated. One of the way to identify financial constraints is to look at the importance of household wealth in the decision to become an entrepreneur. In the absence of correlation between...

In the absence of any correlation between wealth and entrepreneurial talent, initial net wealth should have an explanatory power in the decision to become an entrepreneur only for households that are financially constrained; further, its importance should decrease with wealth. I test these...

In 2012 the Italian Parliament introduced into Italian law a special section in the Companies Register and a large number of financial incentives to create a favorable environment for the development of ‘innovative start-ups' (ISUPs). In this paper we compare ISUPs with other start-ups. In...