Financial Constraints on New Firms:Looking for Regional Disparities
AbstractFinancial constraints affecting new firms are some of the factors most cited forimpeding entrepreneurial dynamics from flourishing. This article introduces the problem ofregional patterns of financial constraints. The research is conducted with regard to the Frenchregions and the new French firms being tracked at the firm level. It refers to entrepreneurialprojects that are concretized in new firms. General entrepreneurial intentions in the Frenchpopulation that are aborted due to financial constraints are not reported. The point is ofimportance as the firm financing conditions are considered. First, an assessment of theregional banking activity leads to the conclusion of a relatively homogeneous situation, theactivity in the core-region Île-de-France appearing however more contrasted. Second, thefinancial constraints affecting new firms are distinguished according to a four-case typologyof credit rationing. It appears, inter alia, that a majority of firms is not facing credit rationing,but also that a non-negligible share is “self-constrained”. The classification is, third andfinally, differentiated according to the regions. Despite the relatively homogeneous bankingsupply, some differences may still be at work. The explanations are hypothetical at this stage butevidence suggests that the regional dimension should definitely deserve further attention.
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Date of creation: 21 Apr 2006
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Financial constraints; Credit rationing; New Firms; Regional Disparities;
Other versions of this item:
- Jean Bonnet & Sylvie Cieply & Marcus Dejardin, 2005. "Financial constraints on new firms: looking for regional disparities," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 48(3), pages 217-246.
- Jean Bonnet & Sylvie Cieply & Marcus Dejardin, 2006. "Financial constraints on new firms: looking for regional disparities," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 200613, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
- Jean Bonnet & Marcus Dejardin & Sylvie Cieply, 2005. "Financial Constraints on New Firms: Looking for Regional Disparities," Papers on Entrepreneurship, Growth and Public Policy 2005-37, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
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