Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/46043
Authors: 
Bates, Timothy
Lofstrom, Magnus
Servon, Lisa
Year of Publication: 
2010
Series/Report no.: 
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5212
Abstract: 
Small business lending programs designed to move disadvantaged low-income people into business ownership have been difficult to implement successfully in the US context. Based in part on the premise that financing requirements are an entry barrier limiting the ability of aspiring entrepreneurs to create small businesses, these programs are designed to alleviate such barriers for low net-worth individuals with limited borrowing opportunities. Our analysis tracks through time nationally representative samples of adults to investigate the role of financial constraints and other factors delineating self-employment entrants from nonentrants. Paying particular attention to lines of business most accessible to adults lacking college credentials and substantial personal net worth, our analysis yields no evidence that financial capital constraints are a significant barrier to small-firm creation.
Subjects: 
self-employment
entrepreneurship
micro-lending
JEL: 
J15
L26
Document Type: 
Working Paper

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