IDEAS home Printed from https://ideas.repec.org/p/tut/cremwp/201127.html
   My bibliography  Save this paper

Does the regional dimension matter as regards finance and entrepreneurship?

Author

Listed:
  • Jean Bonnet

    (University of Caen Basse-Normandie - CREM-CNRS, France)

  • Sylvie Cieply

    (University of Caen Basse-Normandie - CREM-CNRS, France)

  • Marcus Dejardin

    (FUNDP - University of Namur, CERPE, Belgium.)

Abstract

This article investigates the interrelationships between finance and entrepreneurship by exploring regional discrepancies in France. The focus is (1) on regional differences in financial relationships, (2) on the way these relations influence financial constraints on new firms and (3) on the complementary/substitutable effects between funds. No path of exclusion is identified. Rather, firms that are self-constraining or suffer from a weak credit rationing are the ones that later on develop intensive relationships with banks. Substitution exists in almost all the French regions. Results suggest the departure point of an original pecking order theory according to the entrepreneurial intensity of regions.

Suggested Citation

  • 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.
  • Handle: RePEc:tut:cremwp:201127
    as

    Download full text from publisher

    File URL: https://crem-doc.univ-rennes1.fr/wp/2011/201127.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Abdesselam, Rafik & Bonnet, Jean & Le Pape, Nicolas, 2004. "Les contraintes de la création et de la reprise d’entreprises : une application aux régions françaises," Cahiers d'Economie et de Sociologie Rurales (CESR), INRA (French National Institute for Agricultural Research), vol. 72.
    3. Hans Degryse & Steven Ongena, 2005. "Distance, Lending Relationships, and Competition," Journal of Finance, American Finance Association, vol. 60(1), pages 231-266, February.
    4. Sylvie Cieply & Marcus Dejardin, 2010. "Entrepreneur finance in France : the persistent role of banks," Post-Print halshs-00556634, HAL.
    5. Douglas Holtz-Eakin & David Joulfaian & Harvey S. Rosen, 1994. "Entrepreneurial Decisions and Liquidity Constraints," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 334-347, Summer.
    6. Sandra E. Black & Philip E. Strahan, 2002. "Entrepreneurship and Bank Credit Availability," Journal of Finance, American Finance Association, vol. 57(6), pages 2807-2833, December.
    7. Bhattacharya Sudipto & Chiesa Gabriella, 1995. "Proprietary Information, Financial Intermediation, and Research Incentives," Journal of Financial Intermediation, Elsevier, vol. 4(4), pages 328-357, October.
    8. Jan Bouckaert & Hans Degryse, 2004. "Softening Competition by Inducing Switching in Credit Markets," Journal of Industrial Economics, Wiley Blackwell, vol. 52(1), pages 27-52, March.
    9. Robert E. Carpenter & Steven M. Fazzari & Bruce C. Petersen, 1994. "Inventory Investment, Internal-Finance Fluctuation, and the Business Cycle," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(2), pages 75-138.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    financial constraints; credit rationing; financial relationships; new firms; regional development; regional disparities;

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tut:cremwp:201127. 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: (CODA-POIREY Hélène). General contact details of provider: http://edirc.repec.org/data/crmrefr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.