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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
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    References listed on IDEAS

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    More about this item

    Keywords

    financial constraints; credit rationing; financial relationships; new firms; regional development; regional disparities;
    All these keywords.

    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

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