Funding Self-Employment: The Role of Consumer Credit

Christoph Kneiding and Alexander Kritikos

No 1179, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: This paper investigates whether self-employed households use consumer loans - in particular instalment loans and overdrafts - to finance business activities. Controlling for financial and non-financial household variables we show that self-employed households particularly use personal overdrafts significantly more often than employee households. When analyzing the correlation between consumer loan takeups and consumption of self-employed in comparison to employee households, we find first evidence that overdrafts are used by self-employed to finance their business as well. This indicates that intermingling constitutes a financing strategy when regular business loans might not be accessible.

Keywords: Small Business Finance; Consumer Credit; Financial Intermingling (search for similar items in EconPapers)
JEL-codes: D12 D14 G32 (search for similar items in EconPapers)
Pages: 23 p.
Date: 2011
New Economics Papers: this item is included in nep-cfn, nep-ent and nep-iue
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.diw.de/documents/publikationen/73/diw_01.c.390690.de/dp1179.pdf (application/pdf)

Related works:
Journal Article: Funding self-employment -- the role of consumer credit (2013)
Working Paper: Funding Self-Employment: The Role of Consumer Credit (2011)
Working Paper: Funding Self-Employment – The Role of Consumer Credit (2008)
Working Paper: Funding Self-Employment - The Role of Consumer Credit (2007)
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:diw:diwwpp:dp1179

Access Statistics for this paper

More papers in Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Bibliothek ().