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
Local Social Capital and Entrepreneurship
Hans Westlund,Roger Bolton +1 more
TL;DR: In this article, the role of social capital in local/regional entrepreneurship is analyzed and compared with other forms of capital, and the conclusion is that in the main, social capital can be analyzed in the same way as other capital but it has some important special attributes.
Posted Content
Ethnic Enterprise in America: Business and Welfare Among Chinese, Japanese and Blacks
TL;DR: In this article, a book-length study of black, Chinese, and Japanese self-employment in northern cities of the United States, 1880-1940, is described as a product of moral communities resulting from migration networks.
Journal ArticleDOI
Credit constraints as a barrier to the entry and post-entry growth of firms
TL;DR: In this paper, the effects of financial development on the entry of new firms and the expansion of successful new businesses are investigated. And the authors find that access to finance matters most for the entry and post-entry growth of small firms and in sectors that are more dependent upon external finance.
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Who creates jobs
TL;DR: In this paper, the authors argue that there is a strong link between initial levels of young and small firms and subsequent job growth, as evidenced in India, and suggest that there are many policy levers that can be used by policy makers to promote entrepreneurial growth.
Journal ArticleDOI
Self-employment entry across industry groups
TL;DR: For example, this paper found that women are more likely to enter self-employment in skilled services fields than men and that advanced education and work experience were the strongest predictors of female self-employee entry.
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.