Financing, Regulatory Costs and Entrepreneurial Propensity

Yuen Ping Ho () and Poh Wong ()

Small Business Economics, 2007, vol. 28, issue 2, 187-204

Abstract: In this paper, we compared the availability of different types of financing sources to address the issue of capital availability to entrepreneurial propensity and we scrutinise the influence of business costs by utilising a new composite index using data from the World Bank’s Doing Business Database. The availability of three types of financing sources was analysed: traditional debt financing, venture capital financing, and informal investments. The study’s findings show that only informal investments have statistically significant influence on entrepreneurial propensity. Regulatory business costs were found to deter opportunity driven entrepreneurship, but had no impact on necessity entrepreneurship. Copyright Springer Science+Business Media, LLC 2007

Keywords: business cost; entrepreneurial activity; financing; informal investment; venture capital; G24; L26; M13 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (75)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:28:y:2007:i:2:p:187-204

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DOI: 10.1007/s11187-006-9015-0

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