Immigrant entrepreneurs often rely on their group’s local social capital in their new home market to establish and maintain their businesses. In particular, immigrant entrepreneurs with few resources of their own receive help from those possessing more resources. Supporting these arguments using the empirical setting of Gujarati immigrant entrepreneurs in the lodging industry, we find that the ...

This study aims to investigate the formal and informal attributes of founding entrepreneurs contributing to venture growth. The study found significant relationship between venture growth and entrepreneurs with high personal initiative, focused on specific competency areas within operations, finance, marketing and human resources. In operations, founding entrepreneurs are found to be concerned ...

The paper investigates the role of wealth distributions and financial institutions of an economy on within-industry firm heterogeneity in productivity. If there is no financial imperfection so that entrepreneurs are not constrained in borrowing, all of them make the same, optimal, productivity-enhancing investment. As a result, the industry will be composed of many homogeneous firms. If there e...

Based on a sample of 539 angel investors, we empirically test the impact of new ventures’ resource acquisition/allocation strategies in different development stages on angels’ abnormal returns and their extremeness. Our findings suggest that at earlier stages, ventures whose entrepreneurs focus more on securing new resources tend to not only give angel investors lower abnormal returns, but also...

social entrepreneurship will create innovative solutions to solve critical social problems and mobilize the ideas, capacities, resources and social regulations needed for social changes. development of social entrepreneurship will undoubtedly play an important role in economic development, but because of social challenges that entrepreneurs have to cope with, it needs regulatory policies. revie...

Through historical reviews and case studies, this research seeks to understand why some initially successful entrepreneurs failed in the economic boom of past decades. Among various factors contributed to their downfalls are a unique political and business environment, fragile financial systems, traditional cultural influences and personal characteristics. Notwithstanding that these factors sho...

This paper offers a model of credit markets with adverse selection and moral hazard. The equilibrium is highly inefficient, and the underlying reason is the zeroprofit condition imposed by competing financial intermediaries which gives very high powered incentives to entrepreneurs. The paper demonstrates that when entrepreneurs can hire a manager to run their projects, the inefficiencies are pr...

We study a dynamic stochastic general equilibrium model that features heterogeneous agents, incomplete risk sharing, and collateralized debts. Facing uninsurable income risks, households have a precautionary motive for saving and, at the aggregate level, they appear more patient than the entrepreneurs. The relative patience of the households depresses the average loan rate so that the entrepren...

SMEs in developing countries play significant role in the economic activities of those nations. SMEs provide income for many low income households especially in the informal sector. Notwithstanding their contributions, SME entrepreneurs face serious financial challenges which have led to poverty among them. For SMEs to overcome their financial challenges, Micro Finance Institutions have emerged...

This paper assesses quantitatively the impact of legal institutions on entrepreneurial firm dynamics. Owners choose firm size, financial structure and default to manage risk. We find: (i) Less risk averse entrepreneurs run bigger firms and it is optimal for them to incorporate, while more risk averse entrepreneurs run smaller firms and generally are better off remaining unincorporated. (ii) Mor...