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
Citations
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Journal ArticleDOI
Gender, formality, and entrepreneurial success
TL;DR: In this paper, an extended version of the entrepreneurship model in Lucas (Bell Journal of Economics, 9, 508-523, Lucas 1978) is used to address two entrepreneurship puzzles prevailing in developing countries.
ReportDOI
Self-Selection into Credit Markets: Evidence from Agriculture in Mali
TL;DR: This article examined whether returns to capital are higher for farmers who borrow than for those who do not, a direct implication of many credit market models, and measured the difference in returns through a two-stage loan and grant experiment.
Posted Content
Entrepreneurship in advanced and developing countries: A microeconomic perspective
Marco Vivarelli,Marco Vivarelli +1 more
TL;DR: In this paper, the authors provide a contribution to the identification of the role of entrepreneurship in economic growth by mapping out alternative ways of looking at entrepreneurship, distinguishing "creative destruction" from simple "turbulence", distinguishing "progressive" from "regressive" drivers, and the possible scope for an economic policy aimed at maximizing the impact of entrepreneurship on economic growth.
Journal ArticleDOI
Introduction to a Special Issue on Entrepreneurship and Employment: Connecting Labor Market Institutions, Corporate Demography, and Human Resource Management Practices
TL;DR: In this article, the growing attention to entrepreneurship as an engine of job creation and economic development, it is important for social scientists who are broadly interested in labor market and employment, to be aware of the role of entrepreneurship.
Posted Content
Social entrepreneurship – a survey of current research
TL;DR: A survey of alternative definitions and classifications made in recent research can be found in this paper, where the authors conclude that there are a limited number of studies using quantitative methods, a lack of rigorous hypothesis testing, little variety in research design, a need for an unambiguous definition that can serve as a foundation for future research and a thorough analysis of the contributions to society that can be attributed social entrepreneurship.
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.