Publicly funded prestart support for new firms: who demands it and how it affects their employment growth
We examine prestart determinants of the demand for publicly funded external support to new ventures. We also investigate the effects of different types of such support on subsequent firm growth. Adopting resource-based and information asymmetry approaches, we argue that the entrepreneurs who ask for publicly funded prestart support are more likely to face information asymmetries with regard to resource providers, which in turn depend on their level of human and social capital. We also suggest that intangible support oriented towards knowledge generation would be the most beneficial. A series of two-stage treatment effects models applied to a representative sample of new firms in Navarra (Spain) offer considerable support to our predictions. Implications for research and policy are discussed.
If 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.
When requesting a correction, please mention this item's handle: RePEc:pio:envirc:v:29:y:2011:i:5:p:821-847. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Neil Hammond)
If references are entirely missing, you can add them using this form.