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
Do Entry Costs Provide an Empirical Basis for Poverty Traps? Evidence from Mexican Microenterprises
TL;DR: This article used detailed microenterprise surveys in Mexico to examine the empirical evidence for these nonconvexities at low levels of capital stock and found that start-up costs to be very low in some industries.
ReportDOI
Self-employment, Family background, and Race
Michael Hout,Harvey S. Rosen +1 more
TL;DR: This article found that African-Americans and Latinos whose fathers were self-employed have lower rates of self-employment than other men whose fathers did not self-employee, and that other aspects of family background explain only a small portion of the self-Employment gap between African Americans and native-born white ancestry groups.
Journal ArticleDOI
Entrepreneurs' Gender and Financial Constraints: Evidence from International Data
Alexander Muravyev,Alexander Muravyev,Oleksandr Talavera,Oleksandr Talavera,Dorothea Schäfer,Dorothea Schäfer +5 more
TL;DR: The authors examined whether financial institutions discriminate against entrepreneurs on the basis of gender using the cross-country Business Environment and Enterprise Performance Survey (BEEPS) and found some evidence that female-managed firms are less likely to obtain a bank loan compared to male-managed counterparts.
Journal ArticleDOI
Workplace Peers and Entrepreneurship
Ramana Nanda,Jesper B. Sørensen +1 more
TL;DR: The authors examined whether the likelihood of entrepreneurial activity is related to the prior career experiences of an individual's coworkers, using a unique matched employer-employee panel data set and found that coworkers can increase the likelihood that an individual will perceive entrepreneurial opportunities as well as increase his or her motivation to pursue those opportunities.
Report SeriesDOI
Linking entrepreneurship to growth
David B. Audretsch,Roy Thurik +1 more
TL;DR: In this paper, the authors provide a link between the degree of entrepreneurial activity in a country and the growth performance and provide two distinct approaches, based on two different measures of 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.