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 -