Studying the Micro-Angels Approach to Micro-Investment Decisions

Glòria Estapé Dubreuil (), Arvind Ashta () and Juan-Pierre Hédou
Additional contact information
Glòria Estapé Dubreuil: Universitat Autònoma de Barcelona
Juan-Pierre Hédou: Association Régionale des CIGALES de Bourgogne, France
Authors registered in the RePEc Author Service: Gloria Estape-Dubreuil

No 1301, Working Papers from Departament Empresa, Universitat Autònoma de Barcelona

Abstract: Purpose:The paper analyzes the micro-angels investment behaviour, looking both to the criteria used in the selection of their investment projects and to the characteristics of their guidance role during the investment period. Design/Methodology/Approach: The paper focuses on a double bottom line movement of French micro-angels clubs that has been operating since 1983. Our primary source of data is an online survey carried out during March 2012, asking members of clubs all over France for different aspects of their procedures. Findings:Our findings suggest that micro-angels are interested in small, socially or environmentally friendly projects having the potential to contribute to the development of their neighbourhood. We find that women are even more interested than men in such projects. Educated micro-angels value entrepreneurial motivation and understanding of the project more than less-educated micro-angels. We also point out the factors that micro-angels consider important in accompanying enterprises. Here we find that gender makes little difference. However, retired micro-angels value financial diagnosis made conjointly with entrepreneurs, while both active micro-angels and educated micro-angels value more the use of their network to help micro-entrepreneurs. Practical/Social Implications: Given the potential benefits of micro-angels investing and guiding the development of micro-enterprises, a social micro-angel investment on a major scale in developing countries could help in tackling some of the problems faced by the development of microfinance, such as the over-indebtedness of micro-entrepreneurs. Practitioners and new initiatives would gain from understanding what adaptations need to be made. Originality/value: We expect to add to the venture capital theory to take into account non-economic motives.

Keywords: microfinance; micro-angels; micro-equity; business angels; social entrepreneurship; private equity. (search for similar items in EconPapers)
Pages: 28 pages
Date: 2013-01, Revised 2013-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Working Papers at the Department of Business, January pages 1-28

Downloads: (external link)
http://www.uab.cat/doc/DOC_WP_13_01 Revised version, 2013 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 No Encontrado (http://www.uab.cat/doc/DOC_WP_13_01 [301 Moved Permanently]--> https://www.uab.cat/doc/DOC_WP_13_01)

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:bbe:wpaper:1301

Access Statistics for this paper

More papers in Working Papers from Departament Empresa, Universitat Autònoma de Barcelona
Bibliographic data for series maintained by Departament Empresa ().