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Financing entrepreneurship

Listed author(s):
  • Faruk Ülgen


    (CREG - Centre de recherche en économie de Grenoble - Grenoble 2 UPMF - Université Pierre Mendès France)

In an entrepreneurial market economy, every economic activity needs specific financing in order to be effectively realized. The entrepreneur needs finance to fund innovation projects. Financial markets and banks have to find entrepreneurs to whom they could grant credit in order to realize profits from their own activities. Economic development mainly comes from innovative projects which allow people to produce more and better products (goods and services). In the capitalist economy, entrepreneurs are the real sources of economic dynamics while banks and financial institutions and resources are the monetary dynamics of economic change. Changes in the conditions of financing of entrepreneurship affect therefore the path of economic development. Hence, searching for relevant economic policies aiming at creating incentives to innovate in entrepreneurship and in financing mechanisms of productive activities is one of the major issues that analysts and policy makers have to deal with.

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Paper provided by HAL in its series Post-Print with number halshs-01026260.

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Date of creation: 2013
Publication status: Published in Carayannis, E. G. Encyclopedia of creativity, invention, innovation and entrepreneurship., Springer, pp.724-734, 2013
Handle: RePEc:hal:journl:halshs-01026260
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