Journal ArticleDOI
An Estimated Model of Entrepreneurial Choice under Liquidity Constraints
David S. Evans,Boyan Jovanovic +1 more
TLDR
The authors show that the data point to liquidity constraints: capital is essential for starting a business, and liquidity constraints tend to exclude those with insufficient funds at their disposal, and a would-be entrepreneur must bear most of the risk inherent in his venture.Abstract:
Is the capital function distinct from the entrepreneurial function in modern economies? Or does a person have to be wealthy before he or she can start a business? Knight and Schumpeter held different views on the answer to this question. Our empirical findings side with Knight: Liquidity constraints bind, and a would-be entrepreneur must bear most of the risk inherent in his venture. The reasoning is roughly this: The data show that wealthier people are more inclined to become entrepreneurs. In principle, this could be so because the wealthy tend to make better entrepreneurs, but the data reject this explanation. Instead, the data point to liquidity constraints: capital is essential for starting a business, and liquidity constraints tend to exclude those with insufficient funds at their disposal.read more
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Journal ArticleDOI
Family embeddedness and business performance: evidences from women-owned firms
TL;DR: In this article, the authors investigate how the family context may affect female firms' performance by contextualizing the study within Italy and empirically analysing 307 Italian women-owned firms, finding substantial support for the assumption that female business owners benefit from being pulled into the endeavour, from specific linkages with family and also from selected mechanisms to balance work and family life.
Journal ArticleDOI
The entrepreneur's mode of entry: business takeover or new venture start?
Simon C. Parker,Mirjam van Praag +1 more
TL;DR: In this article, the authors extend the well-known occupational choice model of entrepreneurship by analyzing the mode of entry for individuals to become entrepreneurs by taking over businesses or starting up new ventures.
Posted Content
Start-up capital: Differences between male and female entrepreneurs
Roy Thurik,Ingrid Verheul +1 more
TL;DR: Ingegaan wordt onder meer op verschillen tussen mannelijke en vrouwelijke ondernemers, ervaring, onderwijs, part-time on-dernemaerschap and netwerken as discussed by the authors.
Journal ArticleDOI
When Do Employees Leave Their Job for Entrepreneurship
Ari Hyytinen,Mika Maliranta +1 more
TL;DR: This article used a large linked employee-employer dataset to trace and characterize the types of firms which generate new entrepreneurs in Finland and found that such transitions are rare and that smaller firms spawn new entrepreneurs more frequently than larger firms.
Journal ArticleDOI
Do entrepreneurs really learn? Or do they just tell us that they do?
TL;DR: In this paper, the authors examined the theory and evidence in support of entrepreneurial learning (EL), measured in terms of whether individuals have previously owned a business, and time since start-up.
References
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Book
The theory of economic development
TL;DR: Buku ini memberikan infmasi tentang aliran melingkar kehidupan ekonomi sebagaimana dikondisikan oleh keadaan tertentu, fenomena fundamental dari pembangunan EKonomi, kredit, laba wirausaha, bunga atas modal, and siklus bisnis as mentioned in this paper.
Posted ContentDOI
Credit Rationing in Markets with Imperfect Information.
Joseph E. Stiglitz,Andrew Weiss +1 more
TL;DR: In this paper, a model is developed to provide the first theoretical justification for true credit rationing in a loan market, where the amount of the loan and amount of collateral demanded affect the behavior and distribution of borrowers, and interest rates serve as screening devices for evaluating risk.
Book
Risk, Uncertainty and Profit
TL;DR: In Risk, Uncertainty and Profit, Frank Knight explored the riddle of profitability in a competitive market profit should not be possible under competitive conditions, as the entry of new entrepreneurs would drive prices down and nullify margins, however evidence abounds of competitive yet profitable markets as mentioned in this paper.
Journal ArticleDOI
The theory of economic development
Posted Content
Competition and Entrepreneurship
TL;DR: Kirzner as discussed by the authors argues that the assumption of perfect knowledge is unrealistic and argues that every market participant is a potential entrepreneur who can exploit a situation, which depends on a lack of perfect information among the market participants.