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The Allocation of Entrepreneurial Talent under Imperfect Lending Decisions

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  • Alberto ZAZZARO

    ()
    (Universita' Politecnica delle Marche)

Abstract

An argument commonly adduced to explain differences in economic development among regions is the scarcity of entrepreneurial talent in less developed regions. This paper disputes this idea, pointing out that in less developed regions the scant diffusion of innovative entrepreneurial activities is essentially due to the allocation of existing talent to traditional or non-entrepreneurial activities rather than to a lack of entrepreneurial spirit. In particular, this paper argues that in peripheral and less developed regions the greater difficulties encountered by banks in correctly evaluating entrepreneurial talent may be a major factor in preventing existing entrepreneurial talent from being fully exploited.

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Bibliographic Info

Article provided by SIE - Societa' Italiana degli Economisti (I) in its journal Rivista Italiana degli Economisti.

Volume (Year): 7 (2002)
Issue (Month): 3 (December)
Pages: 303-330

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Handle: RePEc:rie:review:v:7:y:2002:i:3:n:1

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Cited by:
  1. Busetta, Giovanni & Zazzaro, Alberto, 2012. "Mutual loan-guarantee societies in monopolistic credit markets with adverse selection," Journal of Financial Stability, Elsevier, Elsevier, vol. 8(1), pages 15-24.
  2. Pietro Alessandrini & Luca Papi & Alberto Zazzaro, 2003. "Banks, regions and development," BNL Quarterly Review, Banca Nazionale del Lavoro, Banca Nazionale del Lavoro, vol. 56(224), pages 23-55.
  3. Pietro Alessandrini & Luca Papi & Alberto Zazzaro, 2003. "Banche, territorio e sviluppo," Moneta e Credito, Economia civile, Economia civile, vol. 56(221), pages 3-43.

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