The State of Research and the Economic Environment in Small-Firm Finance
17 Pages Posted: 18 Jan 2016 Last revised: 23 Mar 2016
Date Written: March 16, 2016
We argue that research on small firms is less informative than most scholars believe, which suggests that researchers and practitioners know less than they think. Research in small firm finance is hindered by a lack of good data, vague descriptions of methodology in the extant literature, and the potential for severe biases in results. We discuss hurdles to our understanding of small firm finance, and the status of government intervention in markets. We close by discussing potential dangers posed to businesses, especially small firms, by economic and political Institutions.
Keywords: angel finance, business formation, government intervention, political economy
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