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.
Original languageEnglish
Place of PublicationTilburg
PublisherEconomics
Number of pages44
Volume2013-053
Publication statusPublished - 2013

Publication series

NameCentER Discussion Paper
Volume2013-053

Fingerprint

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

Keywords

  • Finance
  • Entrepreneurship
  • Growth
  • China

Cite this

Beck, T. H. L., Lu, L., & Yang, R. (2013). Finance and Growth for Microenterprises: Evidence from Rural China. (CentER Discussion Paper; Vol. 2013-053). Tilburg: Economics.
Beck, T.H.L. ; Lu, L. ; Yang, R. / Finance and Growth for Microenterprises : Evidence from Rural China. Tilburg : Economics, 2013. (CentER Discussion Paper).
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Beck, THL, Lu, L & Yang, R 2013 'Finance and Growth for Microenterprises: Evidence from Rural China' CentER Discussion Paper, vol. 2013-053, Economics, Tilburg.

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

Tilburg : Economics, 2013. (CentER Discussion Paper; Vol. 2013-053).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

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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.

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.

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KW - Entrepreneurship

KW - Growth

KW - China

M3 - Discussion paper

VL - 2013-053

T3 - CentER Discussion Paper

BT - Finance and Growth for Microenterprises

PB - Economics

CY - Tilburg

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