Studing the Micro-Angels Approach to Micro-Investment Decisions

28 Pages Posted: 9 Jan 2015

See all articles by Gloria Estapé-Dubreuil

Gloria Estapé-Dubreuil

Autonomous University of Barcelona - Department of Business Economics

Arvind Ashta

CEREN EA 7477 Burgundy School of Business - Université Bourgogne Franche-Comté

Jean-Pierre Hedou

Independent

Date Written: January 10, 2013

Abstract

Purpose: The paper analyzes the micro-angels investment behaviour, looking both to the criteria used in the selection of their investment projects and to the characteristics of their guidance role during the investment period.

Design/Methodology/Approach: The paper focuses on a double bottom line movement of French micro-angels clubs that has been operating since 1983. Our primary source of data is an online survey carried out during March 2012, asking members of clubs all over France for different aspects of their procedures.

Findings: Our findings suggest that micro-angels are interested in small, socially or environmentally friendly projects having the potential to contribute to the development of their neighbourhood. We find that women are even more interested than men in such projects. Educated micro-angels value entrepreneurial motivation and understanding of the project more than less-educated micro-angels.

We also point out the factors that micro-angels consider important in accompanying enterprises. Here we find that gender makes little difference. However, retired micro-angels value financial diagnosis made conjointly with entrepreneurs, while both active micro-angels and educated micro- ngels value more the use of their network to help micro-entrepreneurs.

Practical/Social Implications: Given the potential benefits of micro-angels investing and guiding the development of micro-enterprises, a social micro-angel investment on a major scale in developing countries could help in tackling some of the problems faced by the development of microfinance, such as the over-indebtedness of micro-entrepreneurs. Practitioners and new initiatives would gain from understanding what adaptations need to be made.

Originality/value: We expect to add to the venture capital theory to take into account non-economic motives.

Keywords: microfinance, micro-angels, micro-equity, business angels, social entrepreneurship, private equity

Suggested Citation

Estapé-Dubreuil, Gloria and Ashta, Arvind and Hedou, Jean-Pierre, Studing the Micro-Angels Approach to Micro-Investment Decisions (January 10, 2013). Available at SSRN: https://ssrn.com/abstract=2547435 or http://dx.doi.org/10.2139/ssrn.2547435

Gloria Estapé-Dubreuil (Contact Author)

Autonomous University of Barcelona - Department of Business Economics ( email )

Edifici B - Campus de la UAB
Bellaterra (Cerdanyola del Vallès)
Barcelona, Barcelona 08193
Spain

Arvind Ashta

CEREN EA 7477 Burgundy School of Business - Université Bourgogne Franche-Comté ( email )

29 rue Sambin
21000 Dijon
France

Jean-Pierre Hedou

Independent ( email )

No Address Available

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