Firm Foundations and the Role of Financing Constraints

Firm Foundations and the Role of Financing Constraints Improving the economic conditions for small and medium sized firms as well as start-ups is high on the agenda of policy makers. In this paper we discuss some policy options for fostering the creation of new enterprises. The discussion focuses on measures which aim at helping start-ups to overcome liquidity constraints. In order to provide the background for this discussion the paper provides some new empirical results on the determinants of firm foundations as well as some stylised facts on the occurence of liquidity constraints in West-Germany. We analyse the regional distribution of start-up intensity and offer several hypotheses to explain this distribution. To a large extent, the regional distribution of start-ups can be explained by the existing industry structure, regional human capital as well as the regional public traffic infrastructure. Moreover, we show that liquidity constraints occur more often in small and young firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Firm Foundations and the Role of Financing Constraints

Loading next page...
 
/lp/springer_journal/firm-foundations-and-the-role-of-financing-constraints-zFi9aWue2r
Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1997 by Kluwer Academic Publishers
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1023/A:1007919806417
Publisher site
See Article on Publisher Site

Abstract

Improving the economic conditions for small and medium sized firms as well as start-ups is high on the agenda of policy makers. In this paper we discuss some policy options for fostering the creation of new enterprises. The discussion focuses on measures which aim at helping start-ups to overcome liquidity constraints. In order to provide the background for this discussion the paper provides some new empirical results on the determinants of firm foundations as well as some stylised facts on the occurence of liquidity constraints in West-Germany. We analyse the regional distribution of start-up intensity and offer several hypotheses to explain this distribution. To a large extent, the regional distribution of start-ups can be explained by the existing industry structure, regional human capital as well as the regional public traffic infrastructure. Moreover, we show that liquidity constraints occur more often in small and young firms.

Journal

Small Business EconomicsSpringer Journals

Published: Sep 29, 2004

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve Freelancer

DeepDyve Pro

Price
FREE
$49/month

$360/year
Save searches from
Google Scholar,
PubMed
Create lists to
organize your research
Export lists, citations
Read DeepDyve articles
Abstract access only
Unlimited access to over
18 million full-text articles
Print
20 pages/month
PDF Discount
20% off