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|Title:||Funding self-employment: The role of consumer credit |
Kritikos, Alexander S.
|Issue Date:||2011 |
|Series/Report no.:||Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6093|
|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 take-ups 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.|
|Subjects:||small business finance|
|Persistent Identifier of the first edition:||urn:nbn:de:101:1-201111213204|
|Document Type:||Working Paper|
|Appears in Collections:||IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)|
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