Abstract
We investigate the determinants of start-up financing in 41 countries, using the
Global Entrepreneurship Monitor surveys for 1998-20032. High quality of property rights increases both the total volume of finance and the use of external finance for the individual start-up. The size of the formal financial sector affects the start-up finance via enhancing the volume of self-finance. In addition, the use of external finance by start-ups correlates with the extent of financial restrictions in a country in a non-linear way. Supply of informal finance may to some extent substitute for the use of formal finance.
Global Entrepreneurship Monitor surveys for 1998-20032. High quality of property rights increases both the total volume of finance and the use of external finance for the individual start-up. The size of the formal financial sector affects the start-up finance via enhancing the volume of self-finance. In addition, the use of external finance by start-ups correlates with the extent of financial restrictions in a country in a non-linear way. Supply of informal finance may to some extent substitute for the use of formal finance.
| Original language | English |
|---|---|
| Place of Publication | London (UK) |
| Publisher | University College London |
| Number of pages | 39 |
| Publication status | Published - Dec 2008 |
Publication series
| Name | Economics working paper |
|---|---|
| Publisher | UCL SSEES : Centre for comparative economics |
| No. | 96 |
Keywords
- start-up finance
- entrepreneurial traits
- informal finance
- financial restrictions
- property rights
- Global Entrepreneurship Monitor