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(p. 893) Index of Names
(p. 893) Index of Names
Active Capital, 417
adverse selection, 13, 275
and trusting information by the borrower, 344
as an example of information asymmetry, 446
creating agency costs, 615
credit rationing and, 351
firm confidentiality exacerbating, 447
IPOs affected by, 411
lemon’s problem, 873
market imperfections as, 272
mitigating factors
joint liability, 829
secured lending, 616
signaling, 617
venture capital specialized teams, 458
private equity mechanisms to solve, 38
principal-agent problems, 134
relationship between cash flow and investment with, 256
R & D spending and, 660
agency, 62, 63, 139
Ahlstrom, David, 781, 787 table 25.1, 789 table 25.1, 796, 805, 806, 810
public stock exchanges, 810
venture capital models, 789
Akerlof’s lemon problem, 873
AlphaZirkel, 205
American Motors, 22
American Research & Development Corporation, 30
Angel Capital Association, 399
Angel Capital Education Foundation, 399
angel investment, 1, 4, 10, 18, 20, 22, 28, 29, 32, 10, 138, 141, 154, 257, 369, 370, 377, 379, 392–422, 447, 448, 561
and comparative advantage, 401
choice of entrepreneurs to fund, 405–406
definition of, 392–393
four-hour rule, 404
notable angel investments, 294
Armendariz de Aghion, Beatriz
microenterprises, 811
step-wise increases in short-duration microloans, 878
Åstebro, Thomas, 94n. 1
patent-holders, 56
asymmetric information. See information asymmetry
automobile industry, 22–26
Banco Solidario, Bolivia, 811
Bank of America, 621
Bank Rakyat Indonesia
microlending, 811
Beck, Thorsten, 675, 761, 785 table 25.1, 804, 869
financing of new firms
banks, 138
pecking order theory, 139
trade credit, 528
Becker hypothesis, 884
Beer Bankroll, 379
belief cascade, 36
Berger, Allen N.
asset-based finance, 613
availability of capital, 458
capital structure changes of firms, 447
efficiency of owner-manager firms, 378
fixed-rate secured loans, 617
funding gaps, 255
IPO, implementation cost of, 379
macroeconomic conditions and small business, 379
owner’s personal assets used as collateral, 770
small business dependence on bank finance, 164
sorting-by-observed-risk (SBOR) paradigm, 351
sources of finance, 758
Blanchflower, David G., 298nn. 16, 19, 688, 692, 702, 703, 715n. 1
credit rationing
questioning the Evans and Jovanovic result, 264
entrepreneurial choice, 47
increase in, in United Kingdom, 56
increasing with age, 75
tied to inheritance, 267
tied to initial wealth, 116
Board of Governors of the Federal Reserve System, 688
Boeing, 27
borrower, denied, See financing, bank, denied by
borrower, discouraged, See financing, bank, denied by
Brazil
angel financing in, 804
entrepreneurial finance in, 814
indigenous banking in, 799
informal investment in, 805
IPOs, 478
private equity opportunities in, 798
Briscoe-Maxwell Company, 23
Britain. See United Kingdom
Brownian motion, 280
Buick Company, 25
Burma, entrepreneurs in, 800
business activity, emerging, 10–15, 17, 773
“giants” in, 778
institutional theory and,
Stanford Project on Emerging Companies, 457
business
funding. See financing
models of crowdfunded ventures, 380–381
planning. See planning
taxation. See taxation
Business Week CEO 1000, 171
BuzzMoney. See Media No Mad
Bygrave, William D., 416, 421n. 9, 784 table 25.1, 802, 804, 812
business plans, effectiveness of, 240
Cable, 794
Cambridge Centre for Business Research, 279
Canada, 114, 300n. 44
factoring in 573
invoice financing in, 573
Labour-Sponsored Venture Capital Corporation, 669
Canadian Innovation Centre (CIC), 56
capital
asset pricing model (CAPM), 470
cost of, 762
gaps, 1
markets. See markets, capital
share, 20
social, 687
sources of, 758
working, financing of, 529 See also Denmark; Germany; Japan; minority-owned businesses, sources of capital; venture capital
Capital Taxes Group of the Institute for Fiscal Studies, 662
CARE, 871
cash flow. See financing, cash flow
Center for Research in Security Prices (CRSP), 113
Center for Venture Research. See University of New Hampshire
Chase Manhattan bank, 445
Chevrolet, 24
China, 816n. 7
and firm governance, 795
angel financing in, 804
bank financing in, 757
business incubators, 810
financing constraints in, 757
indigenous banking in, 799
IPOs in, 474
microfinance in, 829
new companies in, 777
private equity opportunities in, 798
Singapore, venture capital companies, 455
Coasian view, 795
collateral
compulsory savings in microfinance as, 829
creditor seizure of, 655
established firms and, 762
informal or group, 871
in WIEs, 803
liquidating, 533–535
notional value and, 829
sorting-by-observed-risk paradigm, 351
types of, 764
competition among banks, 360–361
computer hardware industry, 141
computer software industry, 141
Concentration Index (CCRn), 352
Congo Free State, 780
Consolidated, 27
contracting, financial, 1
corporate governance. See governance, corporate
Cosh, Andrew, 297n 5, 679n. 9, 755, 758, 759 table 24.1, 763
debt-to-capital ratio, British firms, 164
external finance, United Kingdom firms, 117
financial
high-tech firms, information asymmetry and, 139
Costa Rica, microfinance in, 829
costly state verification problem, 873
Côte d’Ivoire, trade credit in, 804
Crash of 1929, 28
credit
Credit Suisse Group, 628
Cressy, Robert, 267, 297nn. 1, 2, 5, 298n. 21, 299n. 22, 300nn. 35, 45, 426
bio-tech sector, United Kingdom, 257
debt constraints, Swedish small firms, 276
entrepreneur, control aversion of, 268
financing constraints, summary of findings, 292 table 9.3, 293 table 9.3, 294 table 9.3, 295 table 9.3, 296 table 9.3
human capital, true constraint on business survival, 265
questioning the Evans and Jovanovic Result, 264
start-ups, finance sources used in combination, 277
crowdfunding. See financing, entrepreneurial
crowdsourcing. See financing, entrepreneurial
Cumming, Douglas J., 297n. 5, 453, 460n. 14, 460n. 20, 667, 680n. 14
Czech Republic, 778
Curtiss-Robertson Airplane Manufacturing Company, 27
Daley-Harris (2009) Microcredit Summit Report, 865
debt, 167–190, 377, 447
access to, 265–304
becoming too expensive, 486–490
compared to venture capital financing, 136
convertible, 631
cost of, 471
cover ratios, 602–604
hedge funds and, 622
mortgage, 127
railroad financing and, 20
refinancing, 628
repayment of
creditor protection and, 655
financially constrained firms and, 638
Grameen Bank’s group lending model and, 828
having written rules for, 829
maturity reduction and, 606
subsidized rural credit and, 871
venture capital financing and, 668
women’s track record with, 875
Small Business Administration Studies and, 310–311
small businesses financed by until 1998, 11
Sterling debt issues, 19
-to-equity conversions, 629
Democratic Republic of Congo, 778
Denmark, 3, 164, 171, 189, 276
capital structure of family firms in, 175–177, 179 Fig. 6.2, 180 Fig. 6.3, 182 Fig. 6.5, 184 Fig. 6.8, 188
Danish Civil Registration System, 176
Danish Commerce and Companies Agency, 176
Købmandsstandens Oplysningsbureau (KOB), 176
Ministry of Economics and Business Affairs, 176
semi-two-tier board system of, 175
Skat (Danish Tax and Customs Administration), 179
tax policy, 179
Department of Labor
“Prudent Man” provision, 31
Diana Project, 749
Dodge brothers, 25
Doing Business, 767
Dominican Republic, 47
dot-coms. See high-technology industry
Douglas aircraft, 27
Dow Jones Broad Tape, 480
Dunn & Bradstreet Corporation, 307
EAD measure, 77
earnings, retained
(p. 900)
Ecuador, microcredit banks in, 868
Edison, 20
Electric Carriage and Wagon Company, 23
Electric Vehicle Company, 23
Electrician, The, 21
electrification industry, 20–21
Electronics Capital Corporation, 30
entrepreneurial choice, 45, 46, 47
decreasing absolute risk aversion (DARA), 268
related to earnings potential, 50
entrepreneurial finance. See financing, entrepreneurial
entrepreneurs
and deciding to become entrepreneurs, 109
and expected returns, 124
business experience of, 265
coming from upper and lower ends of wage distribution, 67
entrepreneurship
and rapid technological change, 65–66
and fringe benefits, 71
and work satisfaction, 74
comparison between industrialized world and developing countries, 47
decline in, 47
encouraging growth, 153
equity, 10, 11, 40 table 4.1, 156, 167–190, 377
advantages of, 12–15
legal issues, 379–380
markets, 19
outside, shortages of, 255
private, 34, 38, 109–132, 418, 419–420
and decision to issue an IPO, 486–500
and moral hazard and adverse selection problems, 38
and pension funds, 31
angel investors and, 756
boom and bust cycles of, 38
for minority markets, 691
railroad industry and, 20
stakes, 13
Ethiopia, microfinance in, 829
European Bank for Reconstruction and Development, 801
European Private Equity and Venture Capital Association, 452
Eurostat, 585
Evans, David S., 299n. 27, 427, 715n. 1
entrepreneurs
borrowing power limiting entry, 133
deciding to
remain in business or choose wage work, 262–265
initial capital
increasing survival chances, 271
learning experiment for, 275
start-ups
and early failure, 272
Everitt-Metzger-Flanders Company, 24
factoring, 1, 4, 558–576, 561–563 table 18.1, 568–573, 804
choice to use, 573–575
growth of, 569–570
Fairlie, Robert W., 52, 94n. 1, 97nn. 28, 30, 98nn. 37, 39, 715n. 1
bank loans
racial disparities and, 165
entrepreneurs
adjusting income to account for returns to capital, 72
decline in number of, 47
employer-provided health insurance affecting, 71
incorrect data manipulation about, 70
minorities as, 87
family firms, 3, 167–190, 177 Fig. 6.1, 192–226, 781
goals of, 194–195
governance of, 195–209
private equity in, 200–202
retained earnings of, 198–200
Fazzari, Steven M., 274, 290 table 9.3, 561 table 18.1, 564, 644 table 21.1, 657
asymmetric information in financial markets, 275
financing
and age of firm, 763–772
angel. See angel investment
bank, 313–332, 341–365, 369, 375, 444, 764 Fig. 24.1A
and trade credit, 277
credit rationing by, 262–265
rejection by, 298n. 32, 299n. 32, 312, 313–332, 314 table 10.1
compared to VC rejection, 278
related to default risk, 281
sorting-by-observed-risk paradigm (SBOR), 351
sorting-by-private-information paradigm (SBPI), 351
use of by Gross National Income, 765 Fig. 24.1B See also collateral; information asymmetry; moral hazard
by leasing, 278
constraints, 290–296 table 9.3, 446–448, 640–654 table 21.1 657–661, 661 Fig. 21.2, 679n. 1, 757
and agency problems, 639–657
crowdfunding and, 369
funding gaps, 275–285
start-ups and, 153
discouraged borrower effect, 259
entrepreneurial, 1, 3, 36, 144–145 table 4.4, 341–365
alternate types of, 367–390
and capital market condition, 352–360
and public policy, 2
coproduction, 778
in weak institutional environments (WIE), 777–823 Fig. 25.1, 782–792 table 25.1, 809
business incubators, 810
challenges in studying, 794–797
coproduction, 779
cross-border activity, 813
distinctiveness of entrepreneurship in, 800–801
emergence of different types of entrepreneurial finance in, 802–810
history of, 799–800
importance of entrepreneurial finance in, 797
indigenous financial innovation in, 810–812
informal finance, 812
Islamic finance, 812–813
microfinance, 810–812
public stock exchanges, 810
international differences in, 2
equity-based, 192–225
external, 444
formal or informal, 158
insider, 11
institutional environment and, 761–763
instruments of, 209–222
labor markets and 676–677
mezzanine-based, 192–225
relationship lending, 341
risk, 37
staged, 12
types of, 134, 142 table 4.2, table 4.3 See also angel investment; debt; credit, trade; equity; invoice financing; SMEs; venture capital
financial institutions, evolution of, 18
Finland
angel investors, 417
firm growth, 424–465
business cycles, 431–432
distributions, 429–430
drivers of, 432–433
evolutionary selection, 435–438
financing of, 444–448
firm size, 434–435
idiosyncratic factors, 426
managerial resources, 438–439
organizational capabilities, 438–439
path, 426
Schumpeterian entrepreneurship, 439–442
serial correlation, 431
size distributions, 428–429
size-growth relationship, 427–428
theories of, 433–444
Fisman, Raymond, 642 table 21.1, 785 table 25.1, 786 table 25.1, 804
credit availability, new firms, 656
trade credit, 757
Fitch Ratings, 590
Flow of Funds Accounts (FFA), 111
free cash flow, 170
Gaussian distribution, 430
General Electric, 28
Germany, 3, 355
equity gaps in, 282
firm growth rates, 432
intellectual property rights protection in, 796
job satisfaction of entrepreneurs in, 74
patent registrations, 455
two-tier board system of, 175
undiversified portfolios of entrepreneurs, 111
unified, 75
Ghana, business and financial literacy training in, 843
Glass-Steagall Banking Act, 29
Global Project Finance loans market, 578
goal conflicts, 13
going public, See initial public offering (IPOs)
Goldfarb, Brent D., 26, 32, 36, 37, 38, 415
equity stakes affecting adverse selection, 13
electrification financing in London, 21
Internet start-up survival, 11
IPO signals, 17
governance, corporate, 220–221, 659, 675, 676, 795, 879
and information asymmetry, 447
debt repayment and, 655
dividend payments and, 673
Grameen Bank, Bangladesh, 826, 831, 835, 860, 870, 876
beginning of, 811
and the Nobel Prize for Peace, 826
Health and Retirement Study (HRS), 121
HedgeFund.net, 622
Hellmann, Thomas, 39n. 4, 453, 457, 647 table 21.1, 667
banks, gathering information to mitigate information asymmetry, 139
high-technology industry, 286, 372, 447, 496
and human resource management, 455
failure rates of, 11
in weak institutional environments, 813
IPOs, 30
taxes and, 639
Holtz-Eakin, Douglas, 266, 267, 291 table 9.3, 298nn. 16, 18, 19, 694, 715n. 1
credit rationing, 264
Honduras, microfinance in, 829
Hoppenstedt database, 205
Huber-White robust standard errors, 108
Hudson Motor Car Company. See American Motors
human capital. See choice, entrepreneurial
Hungary, business incubators in, 810
Hupp Motor Car Company, 22
IfMBonn, 205
income shifting, 125
income tax, progressive, 29
incorporation, separate, 583
India, 816n. 5
angel financing in, 804
business and financial literacy training in, 843
business incubators in, 810
entrepreneurial finance in, 813
private equity opportunities in, 798
private savings in, 803
small businesses in, 757
industry emergence, new, 17–26
information
acquisition, private, 342
asymmetry, 3, 272, 275, 561, 564, 881
and employee screening, 63
angel investors, 419
attracting capital, 387
dividend puzzle and, 673
equity managing, 12
factoring and invoice financing, 558
family firms and, 168
group lending and, 876
IPO and, 472
new industries and, 10
weak institutional environments and, 794
and microbank innovations, 872–873
initial public offerings (IPOs)
and public markets, 15–17
angel investors and, 409
bubbles, 498
Chinese, 779
minimum threshold to be placed on stock market, 379
signals of owners to prospective investors, 517–521
theories of IPO choice, 467–493, 487 table 15.2
allow more dispersion of ownership, 474–475
create a public market, 476
create an analyst following, 476–477
create shares for compensation, 478
establish market price for future sell-out, 472
have a first-mover advantage, 475–476
secure future growth, 469
enjoy insider liquidity, 473
minimize cost of capital, 470
overcome borrowing constraints, 471–472
observe pecking order of financing, 471
enjoy windows of opportunity, 477–478
summary of, 479–480
survey data, 482–483
trade sales and, 417
Inktomi, 495
Intel Capital, 809
interest rates, 602, 615, 617, 624, 762, 771
adjusting for the returns to capital, 72
affected by proportion of new credit, 271
affecting cash flow and investment, 256
and average risk, 260
and collateral, 446
and information asymmetries, 352
and relationship lending, 344
and the second-lien market, 629
misappropriation of funds and, 273
on loans to start-ups, 11
open market, 262
signals and, 352
SMEs and, 564
International Finance Corporation (IFC), 798
Investment Dealers’ Digest (IDD), 480
Ireland, software companies, 448
iStockphoto, 375
Jovanovic, Boyan, 256, 268, 299nn. 24, 26, 27, 427, 435, 715n. 1
entrepreneurs
borrowing power limiting entry, 133
characteristics of, 84
learning experiment for, 275
start-ups retaining earnings, 83
Kaplan, Steven N., 12, 36, 35, 189, 284, 667
financing constraints
severity of, relating to investment-cash flow sensitivities, 657
venture capitalists
specialties, 453
Karlan, Dean, 870, 877
group lending
moving from group lending to individual lending, 829
microfinance
positive effects on business profits, 839
Kauffman Firm Survey, 2, 3, 140–146, 155, 163 table 5.3, 165, 305
entrepreneurs, age of, 157
profile of, 140
on financing new firms, 133
start-ups and bank financing, 158–162
Kendall’s tau, 209
Kiva, 880
labor markets
finance and, 676–677
Lancaster, 360
La Porta, Rafael, 640 table 21.1, 651 table 21.1, 655, 672, 673, 881
English legal origin countries and venture capital protection, 805
financial markets
affected by a country’s legal and institutional development, 761
lease financing, 804
Lehman Brothers, 165
Lerner, Josh, 17, 165n.1, 460n. 19, 670, 756, 763
hot-market phenomenon, 478
new technology-based firms (NTBFs), funding of, 255
prudent man rule, 668
Liberty Bonds, 26
life insurance, 29
liquidity constraints, 139, 264, 344, 688, 689, 690
as possible explanation for risk, 115–117
banks facing greater than venture capital firms, 136
“loose coupling”, 249
Love, Inessa, 4
access to finance, 755
Banco Azteca in Mexico, 837
microcredit, 839
supplier finance, 804
Lusardi, Annamaria, 98nn. 37, 38, 117, 265, 266
financial literacy relating to financial development, 842
Maksimovic, Vojislav
leverage ratios affected by a country’s legal system and institutions, 171
supplier finance, 804
Malaysia
and property rights, 800
business incubators in, 810
microfinance in, 829
venture capital in, 807
Mali, microfinance in, 829
Marconi Company, 28
Maxwell Briscoe Motor Company, 22
Maxwell Motor Company, 24
MBEs. See minority business enterprises
Meckling, William H.
capital structure of firms, 615
principal-agent relationships, 196
risk alteration after loan granting, 617
zero agency costs, 170
medical device industry. See bio-technology companies
mergers and acquisitions, 186
Mersland, Roy, 5, 886n. 4
microbanks
characteristics of, 865
consistency of loan size, 883
cost of doing business and, 881
future of, 886
importance of small loans from, 874
institutional situation of, 884
international element in, 880
mixture of loans granted, 878
serving the poor, 879
ROSCAs, 871
Metropolitan Statistical Association, 400
Mexico, 816n. 5
angel financing in, 804
entrepreneurial finance in, 799
group lending by, 876
informal investing in, 805
new business registration in, 67
management human capital (MHC), 270
microbanks
funding for, 879–880
loan size, 883
market for, 874
monitoring of, 878–879
rotating savings and credit associations (ROSCAs), 868
scale advantages, 885
microcredit. See microfinance
Microfinance Focus, 871
microfinance, 1, 2, 4, 5, 810–812, 825–857
and entrepreneurship, 831–840
and microcredit, 826
and microenterprises, 833–834
and poverty reduction, 830–831
definition of, 826
impact of, 869–870
measuring the impact of, 834–839
origins of, 870–871
outreach, 826–828
overview of, 826–831
repayment requirements, 840–843
sustainability, 830
microfinance industry, innovations in, 859–891
Miller, Danny
independence of financing and investment decisions, 272
minority business enterprises (MBEs), 687–717
minority-owned business, 4, 687–717
background, 689–705
lending discrimination and, 691–692
MIT, 61
Modigliani-Miller theorem, 881
moral hazard
achievement of milestones to reduce, 377
alerting that entrepreneur’s effort cannot be monitored, 135
and increased competition, 360
asset-based lending and, 619
causing CEO replacement, 14
challenging equity, 12
considerations of financing, 134
credit information reducing, 761
double, 668
financial constraints due to, 638
financial intermediaries and, 615
high cost of monitoring causing, 873
lack of when entrepreneurs disclose information, 352
minimized by structure of venture capital limited partnerships, 31
outcome of asymmetric information, 344
stock ownership by managers mitigating, 499
tolerated better by private equity, 419
venture capital special teams mitigating, 458
Morduch, Jonathan
microcredit transitioning into microfinance, 826
motivation (why firms go public), 134–136
Motor magazine, 23
mutual funds, 29
Myers, Stewart C.
MyFootballClub, 379
Nanda, Ramada, 38, 97n. 30
dividend taxation, 673
IPO markets
volatility of, 37
nanotechnology. See bio-technology companies
Nash bargaining framework, 275
Nash-Kelvinator. See American Motors
Nash Motor Company, 25
Natal, adoption of Western financial institutions, 800
National Bureau of Economic Research, 432
National Child Development Study in Great Britain, 116
National Federation of Independent Businesses, 745
National Income and Product Accounts (NIPA), 111
National Longitudinal Survey of Youth (NLSY), 80, 96n. 15, 97nn. 25, 28, 31, 133
earnings growth of young and less educated, 81
finding that self-employed earn less than wage earners, 52
incorrect data manipulations and, 70
minority entering entrepreneurship, 86
National Science Foundation, 141
Scientists and Engineers Statistical Data System, earnings of members, 56
neo-Keynesian theorists, 794
Netherlands, earnings in, 59
New Deal, 29
New Zealand, 47
Nicaragua, poverty in, 832
Nigeria, indigenous banking in, 799
North, Douglass C.
historical norms, 796
transition from limited-access to open-access orders, 801
weak institutional environments, 778
notes, 24
Oman, business incubators in, 810
Opportunity International, 870
options theory, 36
Orser, Barbara J.
over-the-counter (OTC) drugs. See bio-technology companies
Packard Motor Company, 25
Pakistan
business and financial literacy training in, 843
business incubators in, 810
poverty in, 832
venture capital in, 807
Panama, poverty in, 832
panel data. See data, panel
Panel Study of Income Dynamics (PSID), 96nn. 16, 17, 18, 97nn. 19, 20, 693, 694
low-income earners, 55
minority population in entrepreneurship, 689
wage fluctuations when changing from self-employment to wage earner, 89
wealth among entrepreneurs, 77
Parker, Simon C., 715n. 4
entrepreneurs
and abandonment of project within one year, 46
as an escape route from discrimination, 87
credit constraints and, 256
exit of, 63
rates falling in industrialized countries, 47
response to taxation, 126
self-selection and, 50
types of financing, 134
women work fewer hours than men, 86
partnerships, silent, 202–204
patent holders, 56
pecking order theory, 207, 216, 217, 220, 312
conflicting with trade-off theory, 311
external equity as a negative signal, 472
information asymmetries and, 169
partially reversed, in Finnish SMEs, 448
private equity and, 201
retained earnings and, 198
pension funds, investment of, 31
performance, economic, 637–685
personal guarantees. See guarantees, personal
Petersen, Bruce C.
new firms, capital structure of, 139
pharmaceuticals. See bio-technology companies
Pitt, Mark M.
planning, 229–252
causation-based, 236
definitions, 235
effectuation-based, 236
future research into, 249–250
medium range, 237
military, 233
modifying, 237
of ancient civilizations, 234
related to business success, 238–254
strategic, 237
teaching and learning, 245–248
portfolio choice. See entrepreneurship, portfolio choice
Potter Instruments, 30
project finance, 4, 578–610
advantages of, 583–584
definition of, 580–583
“prudent man” rule, 668
public-private partnership contracts (PPPs), 586
Puri, Manju
characteristics of entrepreneurs, 76
corporate venture capital, 138
Rajan, Raghuram G., 554, 641 table 21.1
constraints, 655
E-banking, 361
family firms
capital structure of, 171
IPOs completed during optimistic analyst periods, 477
project finance, 580
small business finance, 153, 471, 561 table 18.1, 564
availability of credit, 308
banking relationships, 164
creditor relationships, 339
SPV security package, 595
windows hypothesis, 478
Rating Fund of the Consultative Group to Assist the Poor (CGAP), 865
RCA, 28
Research Corporation, 60
retained earnings. See earnings, retained
returns, expected. See angel investors, expected returns; entrepreneurs, and expected returns; venture capital, and expected returns
risk
aversion, 419, 749
and higher savings rate, 78
and human capital investment, 189
and investing in safe bonds, 110
and self-employment, 123
business failure and, 270
investors and, 418
decreasing absolute risk aversion (DARA), 268
planning to minimize, 240
related to taxation, 125–126
Robb, Alicia M., 4, 687, 696
capital structure of new firms
chosen considering pecking order theory, 139
informal funding is loans, not equity, 158
small firms, sources of debt and equity, 134
Robinson, David T., 3
women-owned businesses compared to male-owned businesses, 85
Rockefeller, Laurence, 445
Russia
and firm governance, 795
angel financing in, 804
business incubators in, 810
entrepreneurial finance in, 814
private equity opportunities in, 798
submerging markets in, 801
venture capital in, 813
Schumpeter, Joseph A., 460nn. 10, 11, 12, 874
importance of external finance in entrepreneurial venture, 444–446
theory of innovation, 440
underdeveloped local financial markets in WIEs, 798
Schumpeterian
economics, 439
Scientists and Engineers Statistical Data System (SESTAT), 83
Scotland, women-owned businesses in, 739
Securities and Exchange Commission, 29
separate incorporation. See incorporation, separate
Shane, Scott, 14, 420n. 2, 421nn. 5, 6
angel groups
adding value to companies they consider, 402
key factors for success, 409
market for, 416
preferring good business opportunity over good manager, 406
angel investments, 392, 393, 397 table 13.l
focus on the community, 398
individual angels compared to angel groups, 395
new firms in emerging industries, 11
new technology based firms (NTBFs), 255
self-employment correlated with agricultural workers, 143
survey of angel groups, 399
venture capital and companies that have angel financing, 410
signals, 680n. 17
crowdfunding and, 374
dividends and, 673
equity superior to debt as, 12
venture capital quality and, 17
Singapore, informal investing in, 805
Slovak Republic, 778
Slovenia, 778
small and medium enterprises (SMEs), 255–303, 305–338, 427, 432, 558
economic contribution of, 559–560
finance gaps, 560–656
trade credits, 567–568
Small Business Investment Act, 30
smartcampaign.org, 883
Sohl, Jeffrey E.
sorting-by-observed risk, 351
sorting-by-private-information, 351
sorting-by-signaling and self-selection (SBSS), 351
South Africa, 779
business and financial literacy training in, 843
entrepreneurs in, 814
IPOs and new capital in, 798
microfinance in, 870
private equity opportunities in, 798
private savings in, 803
SPC (special purpose company), 578
Sputnik, 28
SPV (special purpose vehicle)
definition of, 586
guarantees from, 595
market risk, 592
ring-fencing, 589
risk management, 584
SSBF. See Survey of Small Business Finances
Stanford Project on Emerging Companies, 457
Stiglitz, Joseph E., 3
adverse selection, 446
financial distress, 470
microfinance, 829
signaling, 260
undercapitalization, 564
Strøm, R. Øystein, 5, 886n. 4
group lending, 878
microbank’s institutional situation, 884–885
size of loans, 883
succession, 234
Super Intendancy of Banks, 868
Survey of Consumer Finances, 690
Survey of Income and Program Participation (SIPP), 590
Survey of Minority- and Women-Owned Business Enterprises (SMOBE/SWOBE), 696
Survey of Small Business Finances (SSBFs), 315
angel investment statistics, 393
age of firms, 313–332
minority-owned businesses, 695, 699, 702, 703, 708
bank financing and, 697
barriers to financing, 688
lending discrimination and, 691
personal assets for collateral in business loans, 690
use of capital, 696
summary of studies that use SSBF data to analyze availability of credit, 339–340
Sweden
small businesses in, 739
Switzerland, job satisfaction of entrepreneurs in, 74
Taiwan, IPOs in, 474
tax reform, 125–126
telegraph, 26
telephone, 26
Tergiman, Chloe, 94n. 1
earnings upswing for veteran entrepreneurs, 52
human capital investment of entrepreneurs, 63
theory methodology, 289
Thailand
business incubators in,