Financing Constraints and Entrepreneurship

Financing Constraints and Entrepreneurship

Financing Constraints and Selection into Entrepreneurship

There is growing belief that countries with better financing environments are associated with higher economic growth because they facilitate entrepreneurship and hence the Schumpeterian process of 'creative destruction'. This dissertation explores this hypothesis in more detail by understanding how the financing environment for new ventures impacts outcomes such as individuals' decision to beco...

Democratizing Entry: Banking Deregulations, Financing Constraints, and Entrepreneurship

We study how US branch banking deregulations a¤ected the entry and exit of …rms in the non-…nancial sector using establishment-level data from the US Census Bureau’s Longitudinal Business Database. The comprehensive micro-data allow us to study how the entry rate, the distribution of entry sizes, and survival rates for …rms responded to changes in banking competition. We also distinguish the re...

Financing Entrepreneurship and the Old-Boy Network

We study entrepreneurs’ start-up financing from banks and local financiers. An informal network, whose membership cannot be observed by outsiders, conveys the good signals it gets about the hidden types of network entrepreneurs to local financiers, which are then reflected in different loan terms. We show that there are winners and losers as a result of the network even among its members. Becau...

VC financing and the entrepreneurship gender gap

Female-led firms do not perform as well as male-led firms when financed by venture capital (VC). Does interaction with venture capitalists contribute to this gender gap in performance? To answer this question, I compare the gender gap in successful exits from VC financing between two sets of firms: those initially financed by VC syndicates with only male general partners (GPs) and those initial...