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 wealth and entrepreneurial talent, wealth should matter in this … wealth if talent is unobserved; other unobservable household characteristics create similar problems. This paper makes a …

In the absence of any correlation between wealth and entrepreneurial talent, initial net wealth should have an … importance should decrease with wealth. I test these theoretical predictions for the Italian case, using the Survey of Household … Income and Wealth. The evidence is that household's initial wealth is indeed important in the decision to become an …