AN ASSESSMENT OF GOVERNMENT FUNDING OF BUSINESS ANGEL NETWORKS: A REGIONAL STUDY

V. Collewaert (), Sophie Manigart and R. Aernoudt
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R. Aernoudt: -

Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium from Ghent University, Faculty of Economics and Business Administration

Abstract: In this paper we evaluate whether government intervention through the public funding of business angel networks is warranted. Based on a regional study of four BANs, we find that these subsidies reach their goals in terms of contribution to economic development and reducing financing and information problems entrepreneurial companies face. However, they are partly based on the wrong assumptions as these companies are not (yet) value creating. Therefore, we advise caution in using the market failure argument as grounds for government intervention in the informal risk capital market.

Keywords: risk capital; business angels; policy; economic development; market failure (search for similar items in EconPapers)
JEL-codes: G24 H71 M13 R58 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2007-03
New Economics Papers: this item is included in nep-cfn, nep-ent, nep-geo and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:rug:rugwps:07/455

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