Financing Constraints and Entrepreneurship
21 Pages Posted: 20 Aug 2009 Last revised: 18 Aug 2009
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Financing Constraints and Entrepreneurship
Financing Constraints and Entrepreneurship
Date Written: August 11, 2009
Abstract
Financing constraints are one of the biggest concerns impacting potential entrepreneurs around the world. Given the important role that entrepreneurship is believed to play in the process of economic growth, alleviating financing constraints for would-be entrepreneurs is also an important goal for policymakers worldwide. We review two major streams of research examining the relevance of financing constraints for entrepreneurship. We then introduce a framework that provides a unified perspective on these research streams, thereby highlighting some important areas for future research and policy analysis in entrepreneurial finance.
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