An Assessment of Government Funding of Business Angel Networks in Flanders

Regional Studies, Vol. 44, No. 1, pp119-130, 2010

Posted: 9 Jan 2011

See all articles by Veroniek Collewaert

Veroniek Collewaert

Maastricht Centre for Entrepreneurship; Ghent University

Sophie Manigart

Vlerick Business School; Ghent University

Rudy Aernoudt

Flemish Minister of Economy, Enterprise, Research, Innovation and External Trade

Date Written: January 1, 2010

Abstract

The paper evaluates whether government intervention through the subsidization of business angel networks (BANs) enhances regional economic growth in Flanders, Belgium. It shows that, firstly, BANs reduce the information and financing problems entrepreneurial companies face. Secondly, that these companies contribute to economic development and growth. Thirdly, that there are positive indicators of future potential, such as an upward evolution in value creation and the ability to raise follow-on financing. Finally, the programme has many positive indirect effects. This leads to a tentative conclusion that public BAN support is warranted. However, to make this conclusion more robust requires a longer-term evaluation.

Keywords: risk capital, public policy, business angel, economic development, market failure

JEL Classification: G32, H81, L26, M13

Suggested Citation

Collewaert, Veroniek and Manigart, Sophie and Aernoudt, Rudy, An Assessment of Government Funding of Business Angel Networks in Flanders (January 1, 2010). Regional Studies, Vol. 44, No. 1, pp119-130, 2010. Available at SSRN: https://ssrn.com/abstract=1736978

Veroniek Collewaert (Contact Author)

Maastricht Centre for Entrepreneurship ( email )

Tongersestraat 49
PO Box 616
Maastricht, MD 6200
Netherlands
+31 43 38 84623 (Phone)
+31 43 38 84970 (Fax)

Ghent University ( email )

Kuiperskaai 55E
Gent, 9000
Belgium

Sophie Manigart

Vlerick Business School ( email )

Reep 1
Ghent, BE-9000
Belgium

Ghent University ( email )

Sint-Pietersplein 7
Gent, 9000
Belgium

Rudy Aernoudt

Flemish Minister of Economy, Enterprise, Research, Innovation and External Trade ( email )

Brussels, B-1000
Belgium

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