Impact of Access to Finance on Entrepreneurial Activities: Comparison of Selected Developed and Developing Countries

Document Type : Research Paper


1 Department of Administrative and Economic Sciences, Faculty of Humanities and Sport Sciences, Gonbad Kavous University, Gonbad Kavous, Iran

2 Department of Administrative and Economic Sciences, Faculty of Humanities, Gonbad-e-Kavous University, Gonbad-e-Kavous, Iran


The main purpose of this article is to examine the impact of access to finance on the process of entrepreneurial activity in 66 selected developing and developed countries over the period 2018–2008. The research method is applied by purpose, and by data collection, is descriptive-correlational; to this end, the research data from international statistical reports based on survey data, economic indicators and entrepreneurship rates of countries They were extracted. The modeling of the research was performed using two criteria of venture capital and bank credit as indicators of access to finance through the Generalized Method of Moments (GMM) approach with STATA14 software. The results indicate a stronger and more positive impact of access to finance on entrepreneurial activities in developing countries. Also, bank lending to boost new and emerging entrepreneurial activity has been more acceptable than venture capital, which could be due to the bank-centric financing of entrepreneurial firms in developing countries. Account. In addition, the positive impact of understanding entrepreneurship capability as an indicator of human capital on access to finance has been another finding of the study. Therefore, policymakers, while trying to develop entrepreneurship, must simultaneously adopt policies to increase entrepreneurial capability and prioritize ease of access to finance.


ایمانی‌پور، نرگس و عزیزی، حسن (1390). «تحلیل اجزای تشکیل‌دهندة فرایند سرمایه‌گذاری خطرپذیر در ایران». توسعه کارآفرینی، 4(2)، 104-85.
چیت­سازان، هستی؛ طالبی، کامبیز و محب‌علی، امیر (1396). «شناسایی و اولویت­بندی رایج‌ترین روش­های تأمین مالی خودراه­انداز در کسب‌وکارهای نوپای حوزهIT». توسعه کارآفرینی، 10 (1): 61-80.
عزیزی، محمد و مریم، ملایجردی (1396). «روش­های تأمین مالی کارآفرینی اجتماعی». تحقیقات مالی، 19 (1): 119-138.
کریمی، آصف و بوذرجمهری، شهریار (1392). «تحلیل موانع تأمین مالی برای شرکت­های کوچک و متوسط». توسعه کارآفرینی، 6(1)، 144-125.
Acs, Z. J., Estrin, S., Mickiewicz, T., & Szerb, L. (2018). Entrepreneurship, institutional economics, and economic growth: an ecosystem perspective. Small Business Economics51(2), 501-514.
Adelino, M., Schoar, A., & Severino, F. (2015). House prices, collateral, and self-employment. Journal of Financial Economics117(2), 288-306.
Alvarado, R., Peñarreta, M., Armas, R., & Alvarado, R. (2017). Access to financing and regional entrepreneurship in Ecuador: an approach using spatial methods. International Journal of Entrepreneurship, 21(3), 1-9.
Anton, S., & Bostan, I. (2017). The role of access to finance in explaining cross-national variation in entrepreneurial activity: A panel data approach. Sustainability, 9(11), 1947-1963.
Arbolino, R., Carlucci, F., Cirà, A., Ioppolo, G., & Yigitcanlar, T. (2017). Efficiency of the EU regulation on greenhouse gas emissions in Italy: The hierarchical cluster analysis approach. Ecological Indicators, 81, 115-123.
Ardagna, S., & Lusardi, A. (2010). Heterogeneity in the effect of regulation on entrepreneurship and entry size. Journal of the European Economic Association, 8(2-3), 594-605.
Arellano, M. & Bond, S. (1991). Some Test of Specification for Panel Data: Monte Carlo Evidence and Application to Employment Equations. Review of Economic Studies, 58, 277-297.
Bianchi, M., (2010). Credit constraints, entrepreneurial talent, and economic development. Small business economics, 34(1), 93- 104.
Blanchflower, D. G., (2000). Self-employment in OECD countries. Labour economics, 7(5), 471-505.
Blanchflower, D. G., & Oswald, A. J. (1998). What makes an entrepreneur? , Journal of labor Economics, 16(1), 26-60.
Blundell, R. & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87, 115-143.
Bosma, N., & Schutjens, V.(2011). Understanding regional variation in entrepreneurial activity and entrepreneurial attitude in Europe. The Annals of Regional Science, 47(3), 711-742.
Bosma, N., Content, J., Sanders, M., & Stam, E. (2018). Institutions, entrepreneurship, and economic growth in Europe. Small Business Economics51(2), 483-499.
Chowdhury, F., Audretsch, D. B., & Belitski, M. (2019). Institutions and entrepreneurship quality. Entrepreneurship Theory and Practice, 43(1), 51-81.
Cohen-Cole, E., Herkenhoff, K., & Phillips, G. (2016). The impact of consumer credit access on employment, earnings and entrepreneurship. NBER Working Paper.
De Clercq, D., Lim, D., & Oh, C. (2013). Individual-Level Resources and New Business Activity: The Contingent Role of Institutional Context. Entrepreneurship Theory and Practice, 37(2), 303–330.
Estrin, S., & Mickiewicz, T. (2011). Entrepreneurship in transition economies: The role of institutions and generational change. The dynamics of entrepreneurship: Evidence from the Global Entrepreneurship Monitor data, 181-208.
Evans, A. J. (2016). The unintended consequences of easy money: How access to finance impedes entrepreneurship. The Review of Austrian Economics, 29(3), 233-252.
Freytag, A., & Thurik, R. (2007). Entrepreneurship and its determinants in a cross-country setting. Journal of evolutionary Economics, 17(2), 117-131.
Grilo, I., & Irigoyen, J. M. (2006). Entrepreneurship in the EU: to wish and not to be. Small business economics, 26(4), 305-318.
Grilo, I., & Thurik, R. (2005). Latent and actual entrepreneurship in Europe and the US: Some recent. The International Entrepreneurship and Management Journal, 1(4), 441–459.
Ho, Y. P., & Wong, P. K. (2007). Financing, regulatory costs and entrepreneurial propensity. Small Business Economics, 28(2-3), 187-204. Econ, 28, 187–204.
Kerr, W., & Nanda, R. (2009). Financing constraints and entrepreneurship (No. w15498). National Bureau of Economic Research.
Klapper, L., Amit, R., & Guillén, M. F. (2010). International Differences in Entrepreneurship. Entrepreneurship and Firm Formation across Countries, Ed. Josh Lerner and Antoinette Schoar, 129-158.
Koellinger, P. D., & Roy Thurik, A. (2012). Entrepreneurship and the business cycle. Review of Economics and Statistics, 94(4), 1143-1156.
Galvão, A., Mascarenhas, C., Gouveia Rodrigues, R., Marques, C. S., & Leal, C. T. (2017). A quadruple helix model of entrepreneurship, innovation and stages of economic development. Review of International Business and Strategy27(2), 261-282.
Nielsen, G. (2014). Determinants of Cross-National Entrepreneurial Activity. The Journal of Politics and Society, 25(2), 46-72.
Nyanzu, F., & Quaidoo, M. (2017). Access to Finance Constraint and SMEs Functioning in Ghana. University Library of Munich, Germany.
Pakizeh, K., & Hosseini, M. (2015). Venture capital investment selection based on PROMETHEE. Applied Mathematics in Engineering, Management and Technology, 3(1), 566-572.
Peachey, S., & Roe, A. (2004). Access to finance. A study for the World Savings Banks Institute.
Salamzadeh, A., & Kawamorita Kesim, H. (2017). The enterprising communities and startup ecosystem in Iran. Journal of Enterprising Communities: People and Places in the Global Economy11(4), 456-479.
Salamzadeh, A., Arasti, Z., & Elyasi, G. M. (2017). Creation of ICT-based social start-ups in Iran: A multiple case study. Journal of enterprising culture25(01), 97-122.
Samila, S., & Sorenson, O. (2011). Venture capital, entrepreneurship, and economic growth. The Review of Economics and Statistics, 93 (1), 338–349.
Schmalz, M. C., Sraer, D. A., & Thesmar, D. (2017). Housing collateral and entrepreneurship. The Journal of Finance72(1), 99-132.
Stenholm, P., Acs, Z. J., & Wuebker, R. (2013). Exploring country-level institutional arrangements on the. Journal of Business Venturing, 28(1), 176–193.
Taddeo, R., Simboli, A., Ioppolo, G., & Morgante, A. (2017). Industrial symbiosis, networking and innovation: The potential role of innovation poles. Sustainability, 9(2), 1-17.
Van Gelderen, M., Thurik, R., & Bosma, N. (2006). Success and risk factors in the pre-startup phase. Small Business Economics, 26(4), 319-335.
van Praag, C. M. (1999). Some classic views on entrepreneurship. De Economist, 147(3), 311–335.
van Stel, A., Carree, M., & Thurik, R. (2005). The effect of entrepreneurial activity on national economic growth. Small Business Economics, 24(3), 311–321.