What Drives Micro-Angel Investments?
AbstractDespite of the significant role of informal venture capital in the financing of new entrepreneurial ventures, there is little research explaining the factors determining the propensity of individuals to make microangel investments. Building on two theoretical frameworks, a social psychological theory of planned behavior and an economic theory on the determinants of demand for risky assets in household portfolios, we develop a set of hypotheses predicting the propensity of individuals to make informal investments in new businesses owned by others. In our analysis we test whether the determinants of micro-angel investments are similar when investing in a business owned by a close family member versus more distant business. The hypotheses are tested using data from 6007 interviews of Finnish adults carried out in the Global Entrepreneurship Monitor program in 2000–2002. The findings show that the theoretical frameworks have more power in explaining investments in firms not owned by close family members. The study provides new understanding of the differences in the drivers of different types of micro-angel investments. Copyright Springer 2005
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Small Business Economics.
Volume (Year): 25 (2005)
Issue (Month): 5 (December)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100338
household portfolios; informal venture capital; theory of planned behavior; G24; G28; M13; D14;
Find related papers by JEL classification:
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James M. Poterba, 1988.
"Venture Capital and Capital Gains Taxation,"
508, Massachusetts Institute of Technology (MIT), Department of Economics.
- Vanessa Diaz-Moriana & Colm O’Gorman, 2013. "Informal Investors and the Informal Venture Capital Market in Ireland," Journal of Asian Scientific Research, Asian Economic and Social Society, vol. 3(6), pages 630-643, June.
- Niels Bosma, 2012.
"The Global Entrepreneurship Monitor (GEM) and its Impact on Entrepreneurship Research,"
Global Entrepreneurship Monitor Working Paper Series
1201, Global Entrepreneurship Research Association, revised May 2012.
- Bosma, Niels, 2013. "The Global Entrepreneurship Monitor (GEM) and Its Impact on Entrepreneurship Research," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 9(2), pages 143-248, February.
- L�szl� Szerb & Siri Terjesen & G�bor Rappai, 2007.
"Seeding new ventures�--�green thumbs and fertile fields: Individual and environmental drivers of informal investment,"
Taylor & Francis Journals, vol. 9(4), pages 257-284, April.
- Laszlo Szerb & Siri Terjesen & Gabor Rappai, 2007. "Seeding new ventures - green thumbs and fertile fields: individual and environmental drivers of informal investment," Jena Economic Research Papers 2007-030, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- De Clercq, Dirk & Meuleman, Miguel & Wright, Mike, 2012. "A cross-country investigation of micro-angel investment activity: The roles of new business opportunities and institutions," International Business Review, Elsevier, vol. 21(2), pages 117-129.
- Dirk Clercq & Dominic Lim & Chang Oh, 2014. "Hierarchy and conservatism in the contributions of resources to entrepreneurial activity," Small Business Economics, Springer, vol. 42(3), pages 507-522, March.
- Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.
- Sander Wennekers & Jolanda Hessels & Chantal Hartog, 2009. "Global Entrepreneurship Monitor 2008 The Netherlands," Scales Research Reports A200914, EIM Business and Policy Research.
- László Szerb & Gábor Rappai & Zsolt Makra & Siri Terjesen, 2007. "Informal Investment in Transition Economies: Individual Characteristics and Clusters," Small Business Economics, Springer, vol. 28(2), pages 257-271, March.
- Yuen-Ping Ho & Poh-Kam Wong, 2007. "Financing, Regulatory Costs and Entrepreneurial Propensity," Small Business Economics, Springer, vol. 28(2), pages 187-204, March.
- José Ernesto Amoros & Niels Bosma & Jonathan Levie, 2011. "Ten Years of Global Entrepreneurship Monitor: Accomplishments and Prospects," Global Entrepreneurship Monitor Working Paper Series 1105, Global Entrepreneurship Research Association, revised Aug 2011.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.