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

Document Type : Research Paper

Authors

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

Abstract

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.

Keywords

References

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