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Financing high-potential entrepreneurship

Author

Listed:
  • Ramana Nanda

    (Harvard Business School, USA)

Abstract

Entrepreneurship is essential to job creation and to productivity growth and therefore is an important matter for government policy. However, policymakers face a difficult challenge because successful growth for a few firms—which cannot easily be identified in advance—is accompanied by widespread failure for most other new firms. Predicting which firms will fail and which will succeed is nearly impossible. Instead of futilely trying to pick winners, governments can play a useful role in facilitating the growth of the most promising firms by setting the conditions for efficient trial-and-error experimentation across firms.

Suggested Citation

  • Ramana Nanda, 2016. "Financing high-potential entrepreneurship," IZA World of Labor, Institute of Labor Economics (IZA), pages 252-252, April.
    • Handle: RePEc:iza:izawol:journl:y:2016:n:252
    as

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    References listed on IDEAS

    as
    1. Martin C. Schmalz & David A. Sraer & David Thesmar, 2017. "Housing Collateral and Entrepreneurship," Journal of Finance, American Finance Association, vol. 72(1), pages 99-132, February.
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    4. Ryan Decker & John Haltiwanger & Ron Jarmin & Javier Miranda, 2014. "The Role of Entrepreneurship in US Job Creation and Economic Dynamism," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 3-24, Summer.
    5. William R. Kerr & Ramana Nanda & Matthew Rhodes-Kropf, 2014. "Entrepreneurship as Experimentation," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 25-48, Summer.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. McKenzie, David & Sansone, Dario, 2019. "Predicting entrepreneurial success is hard: Evidence from a business plan competition in Nigeria," Journal of Development Economics, Elsevier, vol. 141(C).
    2. Gubik, Andrea S. & Vörös, Zsófia, 2023. "Why narcissists may be successful entrepreneurs: The role of entrepreneurial social identity and overwork," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    3. Quignon, Aurelien, 2023. "Crowd-based feedback and early-stage entrepreneurial performance: Evidence from a digital platform," Research Policy, Elsevier, vol. 52(7).
    4. Bessen, James & Impink, Stephen Michael & Reichensperger, Lydia & Seamans, Robert, 2022. "The role of data for AI startup growth," Research Policy, Elsevier, vol. 51(5).
    5. László Szerb & Zsófia Vörös, 2021. "The changing form of overconfidence and its effect on growth expectations at the early stages of startups," Small Business Economics, Springer, vol. 57(1), pages 151-165, June.
    6. McKenzie, David & Sansone, Dario, 2017. "Man vs. Machine in Predicting Successful Entrepreneurs: Evidence from a Business Plan Competition in Nigeria," CEPR Discussion Papers 12523, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    entrepreneurial finance; small business finance; high-potential entrepreneurship; banks; venture capital;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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