In this paper we investigate whether small-scale businesses face financial constraints that affect their survival. We develop a model of moral hazard in which financial constraints arise endogenously. The model predicts that higher private assets relax financial constraints and have a positive...

Unternehmensgründungen in technologieorientierten Sektoren leisten einen bedeutsamen Beitrag zur Umsetzung technologischer Innovationen in neue Produkte und Verfahren. Sie tragen somit zum technologischen Wandel bei und stärken die technologische Leistungsfähigkeit einer Volkswirtschaft. Da...

Audretsch and Fritsch (2002) proposed two explanations for the mixed evidence regarding the relationship between new firm formation and regional development. Firstly, they found evidence for the existence of long time lags needed before the main effects of new firm formation on employment change...

The importance and contribution of new technology-based Firms (NTBFs) to long term economic development is at the center of a controversial debate. This paper provides an overview of the current status of research on various issues concerning NTBFs in Germany. The issues covered include the...