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Financial constraints on new firms: looking for regional disparities

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Author Info

  • Jean Bonnet

    (CREM - CNRS)

  • Sylvie Cieply

    (CREM - CNRS)

  • Marcus Dejardin

    (University of Namur - CREW)

Abstract

Financial 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.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Paper provided by Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS in its series Economics Working Paper Archive (University of Rennes 1 & University of Caen) with number 200613.

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Date of creation: 2006
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Handle: RePEc:tut:cremwp:200613

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Postal: CREM (UMR CNRS 6211) - Faculty of Economics, 7 place Hoche, 35065 Rennes Cedex - France
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Keywords: Financial constraints; credit rationing; new firms; regional disparities.;

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References

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Citations

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Cited by:
  1. Thomas Gries & Wim Naudé, 2010. "Entrepreneurship and structural economic transformation," Small Business Economics, Springer, vol. 34(1), pages 13-29, January.
  2. Gries, Thomas & Naude, Wim, 2008. "Entrepreneurship and Regional Economic Growth: Towards A General Theory of Start-Ups," Working Papers RP2008/70, World Institute for Development Economic Research (UNU-WIDER).
  3. Jean Bonnet & Sylvie Cieply & Marcus Dejardin, 2011. "Does the regional dimension matter as regards finance and entrepreneurship?," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201127, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  4. Martin Koning & Marie-Estelle Binet & François Facchini, 2010. "Les déterminants de la dynamique entrepreneuriale dans les régions françaises (1994-2003)," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00467900, HAL.
  5. Gries, Thomas & Naude, Wim, 2010. "Entrepreneurship, Structural Change and a Global Economic Crisis," Working Papers wp2010-57, World Institute for Development Economic Research (UNU-WIDER).
  6. repec:hal:wpaper:halshs-00467900 is not listed on IDEAS

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  1. Socio-Economics of Innovation

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