Finance and Growth for Microenterprises

Evidence from Rural China

T.H.L. Beck, L. Lu, R. Yang

Research output: Working paperDiscussion paperOther research output

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Abstract

Abstract: Using a survey dataset of Chinese rural households, we find that access to external finance is positively associated with the decision to become entrepreneur, the initial investment for microenterprises and the use of external finance. Also, we find that the use of informal finance is positively associated with sales growth of microenterprises with employees, but not of self-employed. We do not find any significant relationship between the use of formal finance and firm growth. Our findings underline the importance of finance for entrepreneurship and microenterprise growth, and the role of informal finance in the absence of efficient formal financial institutions. Key Words: Finance, Entrepreneurship, Growth, China.
Original languageEnglish
Place of PublicationTilburg
PublisherEBC
Number of pages44
Volume2013-010
Publication statusPublished - 2013

Publication series

NameEBC Discussion Paper
Volume2013-010

Fingerprint

Finance
Finance and growth
Rural China
Micro-enterprises
Entrepreneurship
External finance
Entrepreneurs
Rural households
China
Key words
Employees
Firm growth
Financial institutions
Sales growth

Cite this

Beck, T. H. L., Lu, L., & Yang, R. (2013). Finance and Growth for Microenterprises: Evidence from Rural China. (EBC Discussion Paper; Vol. 2013-010). Tilburg: EBC.
Beck, T.H.L. ; Lu, L. ; Yang, R. / Finance and Growth for Microenterprises : Evidence from Rural China. Tilburg : EBC, 2013. (EBC Discussion Paper).
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Beck, THL, Lu, L & Yang, R 2013 'Finance and Growth for Microenterprises: Evidence from Rural China' EBC Discussion Paper, vol. 2013-010, EBC, Tilburg.

Finance and Growth for Microenterprises : Evidence from Rural China. / Beck, T.H.L.; Lu, L.; Yang, R.

Tilburg : EBC, 2013. (EBC Discussion Paper; Vol. 2013-010).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Finance and Growth for Microenterprises

T2 - Evidence from Rural China

AU - Beck, T.H.L.

AU - Lu, L.

AU - Yang, R.

N1 - Pagination: 44

PY - 2013

Y1 - 2013

N2 - Abstract: Using a survey dataset of Chinese rural households, we find that access to external finance is positively associated with the decision to become entrepreneur, the initial investment for microenterprises and the use of external finance. Also, we find that the use of informal finance is positively associated with sales growth of microenterprises with employees, but not of self-employed. We do not find any significant relationship between the use of formal finance and firm growth. Our findings underline the importance of finance for entrepreneurship and microenterprise growth, and the role of informal finance in the absence of efficient formal financial institutions. Key Words: Finance, Entrepreneurship, Growth, China.

AB - Abstract: Using a survey dataset of Chinese rural households, we find that access to external finance is positively associated with the decision to become entrepreneur, the initial investment for microenterprises and the use of external finance. Also, we find that the use of informal finance is positively associated with sales growth of microenterprises with employees, but not of self-employed. We do not find any significant relationship between the use of formal finance and firm growth. Our findings underline the importance of finance for entrepreneurship and microenterprise growth, and the role of informal finance in the absence of efficient formal financial institutions. Key Words: Finance, Entrepreneurship, Growth, China.

M3 - Discussion paper

VL - 2013-010

T3 - EBC Discussion Paper

BT - Finance and Growth for Microenterprises

PB - EBC

CY - Tilburg

ER -

Beck THL, Lu L, Yang R. Finance and Growth for Microenterprises: Evidence from Rural China. Tilburg: EBC. 2013. (EBC Discussion Paper).