An assessment of government funding of business angel networks: a regional study
AbstractIn this paper we evaluate whether government intervention through the public funding of business angel networks is warranted. Based on a regional study of four BANs, we find that these subsidies reach their goals in terms of contribution to economic development and reducing financing and information problems entrepreneurial companies face. However, they are partly based on the wrong assumptions as these companies are not (yet) value creating. Therefore, we advise caution in using the market failure argument as grounds for government intervention in the informal risk capital market.
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Bibliographic InfoPaper provided by Vlerick Leuven Gent Management School in its series Vlerick Leuven Gent Management School Working Paper Series with number 2007-16.
Length: 28 pages
Date of creation: 05 Jun 2007
Date of revision:
risk capital; business angels; policy; economic development; market failure;
Other versions of this item:
- V. Collewaert & S. Manigart & R. Aernoudt, 2007. "An Assessment Of Government Funding Of Business Angel Networks: A Regional Study," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/455, Ghent University, Faculty of Economics and Business Administration.
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-11 (All new papers)
- NEP-ENT-2007-06-11 (Entrepreneurship)
- NEP-GEO-2007-06-11 (Economic Geography)
- NEP-PBE-2007-06-11 (Public Economics)
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.:
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