Fiscal windfalls and entrepreneurship: fostering entry or promoting incumbents?

Mark J. Garmaise () and Gabriel Natividad
Additional contact information
Mark J. Garmaise: UCLA Anderson
Gabriel Natividad: Universidad de Piura

Small Business Economics, 2024, vol. 62, issue 1, No 6, 133-158

Abstract: Abstract We study the impact of government fiscal windfalls on entrepreneurship through an analysis of shocks to transfer payments in Peru. These pure transfers generate higher government spending, and we contrast the impacts on incumbent firms and entrants. Incumbent exits from the financial system are reduced, but previously troubled firms experience deteriorating performance. Increased transfers result in higher rates of firm entry into formal borrowing and superior entrant outcomes. Overall, startups outperform non-startups after heightened transfers.

Keywords: Fiscal windfalls; Entry; Startups (search for similar items in EconPapers)
JEL-codes: G21 L26 R50 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11187-023-00757-3 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:62:y:2024:i:1:d:10.1007_s11187-023-00757-3

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2

DOI: 10.1007/s11187-023-00757-3

Access Statistics for this article

Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch

More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().