Loading...
What determines the level of informal venture finance invest
We undertake the first research to move analysis beyond estimating the propensity for a person to become an informal investor and onto the core concern which is the total volume of venture finance. We find that a 1 % increase in entrepreneurial activity increases the number of informal investors by...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
2014
|
| Subjects: |
| Summary: | We undertake the first research to move analysis beyond estimating the propensity for a person to become an informal investor and onto the core concern which is the total volume of venture finance. We find that a 1 % increase in entrepreneurial activity increases the number of informal investors by 1.7 %. However, the average invested amount declines by 0.8 %, leading to a net positive total increase of about 0.9 %. This result indicates that, to a considerable extent, demand for informal investment creates its own supply. As a result, the research finds that market forces help solve finance constraints for new ventures and hence lessen the need for public policy intervention. This effect is stronger for males than females. |
|---|---|
| Physical Description: | 467-484 |