Download or read book Entrepreneurship Liquidity Constraints and Start up Costs written by Raquel Fonseca and published by . This book was released on 2007 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Entrepreneurship Liquidity Constraints and Start up Costs written by Raquel Fonseca and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In section 4, we set up the model, calibrate it to one particular economy and generate predictions on the effect of liquidity constraints and start-up costs on the relationship between wealth and the fraction of entrepreneurs in an economy. [...] Hence, while entrepreneurial ability is exogenously given, the entrepreneurial rate of return from investing in capital is endogenous and is a function of k the size of the project that the entrepreneur implements. [...] The first term of the right hand side of that equation is the profit that the household keeps for herself and the second term is the amount of payments to the financial intermediary that it saves because of default. [...] In our framework, wealth plays the role of collateral and limits default: the higher is the amount of household wealth invested in the business, the larger is the sum that the bank is able to. [...] However, in order to keep the model tractable, we calibrate the inactivity to similar values for the worker and the entrepreneur, which reduces the number of value functions and state variables in the model.
Download or read book Entrepreneurship Wealth Liquidity Constraints and Start up Costs written by Raquel Fonseca and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Do Liquidity Constraints Matter for New Entrepreneurs written by Kevin Moore and published by . This book was released on 2004 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Numerous studies have found a positive relationship between wealth and entering entrepreneurship, and interpret this as evidence of the existence of liquidity constraints. However, recent research has shown that the relationship between wealth and entering entrepreneurship may be non-linear and only significant for high-wealth households; this result cannot be interpreted as evidence of liquidity constraints. Using data from the SCF, we construct a proxy for wealth based on the household's home equity wealth at the time of the entrepreneurial decision. The results provide further evidence that the relationship between wealth and entering entrepreneurship is only significant for high-wealth households and that liquidity constraints do not appear to bind for the majority of new entrepreneurs. Possible explanations for the relationship between wealth and becoming an entrepreneur include lower risk aversion and differences in the types of businesses started by high-wealth households"--Federal Reserve Board web site.
Download or read book Why are Entrepreneurs Liquidity Constrained written by Wei-ying Chang and published by . This book was released on 1997 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Measuring Entrepreneurial Businesses written by John Haltiwanger and published by University of Chicago Press. This book was released on 2017-09-21 with total page 488 pages. Available in PDF, EPUB and Kindle. Book excerpt: Measuring Entrepreneurial Businesses: Current Knowledge and Challenges brings together and unprecedented group of economists, data providers, and data analysts to discuss research on the state of entrepreneurship and to address the challenges in understanding this dynamic part of the economy. Each chapter addresses the challenges of measuring entrepreneurship and how entrepreneurial firms contribute to economies and standards of living. The book also investigates heterogeneity in entrepreneurs, challenges experienced by entrepreneurs over time, and how much less we know than we think about entrepreneurship given data limitations. This volume will be a groundbreaking first serious look into entrepreneurship in the NBER's Income and Wealth series.
Download or read book The Illusions of Entrepreneurship written by Scott A. Shane and published by Yale University Press. This book was released on 2008-10-01 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt: There are far more entrepreneurs than most people realize. But the failure rate of new businesses is disappointingly high, and the economic impact of most of them disappointingly low, suggesting that enthusiastic would-be entrepreneurs and their investors all too often operate under a false set of assumptions. This book shows that the reality of entrepreneurship is decidedly different from the myths that have come to surround it. Scott Shane, a leading expert in entrepreneurial activity in the United States and other countries, draws on the data from extensive research to provide accurate, useful information about who becomes an entrepreneur and why, how businesses are started, which factors lead to success, and which predict a likely failure. The Illusions of Entrepreneurship is an essential resource for everyone who has dreamed of starting a new business, for investors in start-ups, for policy makers attempting to facilitate the formation and survival of new businesses, and for researchers interested in the economic impact of entrepreneurial activity. Scott Shane offers research-based answers to these questions and many others: · Why do people start businesses? · What industries are popular for start-ups? · How many jobs do new businesses create? · How do entrepreneurs finance their start-ups? · What makes some locations and some countries more entrepreneurial than others? · What are the characteristics of the typical entrepreneur? · How well does the typical start-up perform? · What strategies contribute to the survival and profitability of new businesses over time?
Download or read book Are Business Start ups Liquidity Constrained written by Tobias Fuchs and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Are entrepreneurs liquidity constraint? Using quasi-random housing wealth variation resulting from communist era decisions, we argue yes, as we find that wealthier East Germans are more likely to become self-employed after reunification. In the literature, no such strong relationship was found using regional house price changes the US and UK. In these economies, our results suggest, the effects of liquidity constraints are masked by anticipatory savings of the would be self-employed, which was impossible for the East Germans in our sample due to communism.
Download or read book Frontiers in Entrepreneurship written by Boris Urban and published by Springer Science & Business Media. This book was released on 2010-07-23 with total page 223 pages. Available in PDF, EPUB and Kindle. Book excerpt: Te series Perspectives in Entrepreneurship: A Research Companion provides an authoritative overview of specialised themes in entrepreneurship. Each of the four books presents the conceptual framework and foundations underlying a specialist feld of scholarship in entrepreneurship. Te series is inspired by the dearth of higher-level texts available in South Africa, failing to encapsulate the rigorous research evident in the growing feld of entrepreneurship internationally. Te content is driven by a judicious selection and interpretation of key knowledge set in context by introducing and delineating major topics previously not discussed in-depth in traditional entrepreneurial texts. A blend of theoretical and empirical evidence is presented that collectively demonstrates the convergence of thinking on a particular theme. Identifying and evaluating the most seminal and impactful scholarly research on diferent subject areas where entrepreneurship is at the core, serves to achieve this convergence. By applying a theoretical lens to central issues ‘about entrepreneurship’ rather than focusing on practical issues of ‘how to’, the series has a conceptual outlook with specialist areas in detailed narrative. Te book is deliberately structured to add value to learners who are undertaking secondary programmes in entrepreneurship by building on basic entrepreneurship principles and theory. Te series builds on fundamental entrepreneurial texts. Each book provides a valuable knowledge base for educators, third year and postgraduate students, researchers, policy makers, and service providers.
Download or read book The Wealth Effect on New Business Startups in a Developing Economy written by Alice Mesnard and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper tests for nonlinearities in the wealth effect on self-employment, as can arise from startup costs or liquidity constraints. Using both nonparametric and parametric methods, we show that the relationship between the probability of a return migrant to Tunisia starting up a business and the stock of his savings repatriated at return is concave for almost the entire range of our data, though we find weak evidence of a convex relationship at very low wealth levels. Our results suggest that the aggregate self-employment rate is an increasing function of aggregate wealth, but a decreasing function of wealth inequality.
Download or read book Handbook of Research on Innovation and Entrepreneurship written by David B. Audretsch and published by Edward Elgar Publishing. This book was released on 2011-01-01 with total page 529 pages. Available in PDF, EPUB and Kindle. Book excerpt: This path-breaking Handbook analyses the foundations, social desirability, institutions and geography of innovation and entrepreneurship. Leading researchers use their outstanding expertise to investigate various aspects in the context of innovation and entrepreneurship such as growth, knowledge production and spillovers, technology transfer, the organization of the firm, industrial policy, financing, small firms and start-ups, and entrepreneurship education as well as the characteristics of the entrepreneur. There is much in this Handbook that will prove to be informative and stimulating, especially for academics and post-graduate students in economics and management. Those starting a PhD in innovation or entrepreneurship will find this book essential reading.
Download or read book Entrepreneurship in Emerging Domestic Markets written by Glenn Yago and published by Springer Science & Business Media. This book was released on 2007-12-03 with total page 165 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book will be the most up-to-date compilation of different perspectives on entrepreneurship. The authors are highly respected in the field, either as scholars or practitioners and have interacted before on this topic either as co-authors on papers or as conference discussants The research provides historical information as well as the latest data on entrepreneurship The book focuses on "emerging domestic markets" which encompasses minorities, women, and low-income communities
Download or read book Liquidity Constraints Household Wealth and Entrepreneurship written by Erik Hurst and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The propensity to become a business owner is a nonlinear function of wealth.The relationship between wealth and entry into entrepreneurship is essentially flat over the majority of the wealth distribution.It is only at the top of the wealth distribution--after the ninety-fifth percentile--that a positive relationship can be found. Segmenting businesses into industries with high-- and low--starting capital requirements, we find no evidence that wealth matters more for businesses requiring higher initial capital.When using inheritances as an instrument for wealth, we find that both past and future inheritances predict current business entry, showing that inheritances capture more than simply liquidity.We further exploit the regional variation in house prices and find that households that lived in regions in which housing prices appreciated strongly were no more likely to start a business than households in other regions.(Publication abstract).
Download or read book The Dynamics of Entrepreneurship written by Maria Minniti and published by Oxford University Press. This book was released on 2011-07-28 with total page 347 pages. Available in PDF, EPUB and Kindle. Book excerpt: As governments across the world look to entrepreneurship as a way to increase the wealth and well-being of their countries, this volume brings together leading scholars to provide a comprehensive overview of entrepreneurial activity based on empirical data.
Download or read book Entrepreneurship and Economic Development written by Wim Naudé and published by Springer. This book was released on 2010-12-08 with total page 384 pages. Available in PDF, EPUB and Kindle. Book excerpt: Leading international scholars provide a timely reconsideration of how and why entrepreneurship matters for economic development, particularly in emerging and developing economies. The book critically dissects the evolving relationship between entrepreneurs and the state.
Download or read book Research on Economic Inequality written by Sanghamitra Bandyopadhyay and published by Emerald Group Publishing. This book was released on 2017-11-30 with total page 363 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume presents ten chapters that discuss the economics of poverty, inequality and welfare. They address how we measure poverty, inequality and welfare and how we use such measurements to devise policies to deliver social mobility. They consider both theoretical and empirical topics with special reference to developing countries.
Download or read book Liquidity Constraints Household Wealth and Entrepreneurship Revisited written by Robert W. Fairlie and published by . This book was released on 2012 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: A large body research shows a positive relationship between wealth and entrepreneurship and interprets the relationship as providing evidence of liquidity constraints. Recently, however, the liquidity constraint interpretation has been challenged because of the finding that the relationship between business entry rates and assets is flat throughout most of the asset distribution and only rises dramatically after this point (Hurst and Lusardi 2004). We reexamine the liquidity constraint hypothesis in three ways. First, we demonstrate that examining the relationship separately for those who experience a job loss and those who do not reveals generally increasing entry rates through the wealth distribution for both groups. Based on the entrepreneurial choice model of Evans and Jovanovic (1989), these two groups face different incentives, and thus have different solutions to the entrepreneurial decision. We also find evidence of a stronger relationship between entrepreneurship and a different measure of wealth - net housing equity - for the two groups. Second, we examine the liquidity constraint hypothesis using a two-period simulation model that extends the Evans and Jovanovic (1989) model. The model shows how exogenous wealth shocks can be used to accurately identify the presence of liquidity constraints even allowing for endogenous saving and correlated abilities. Third, we provide new evidence from matched Current Population Survey (1993-2004) data to study whether changes in housing prices affect self-employment entry.
