IDEAS home Printed from https://ideas.repec.org/a/ags/jrapmc/132296.html
   My bibliography  Save this article

The Role of A Public Venture Capital Program in State Economic Development: The Case of Kansas Venture Capital, Inc

Author

Listed:
  • Barkley, David L.
  • DiFurio, Ferdinand
  • Leatherman, John C.

Abstract

State-assisted venture capital programs are a popular strategy to stimulate entrepreneurship and small business development. This study estimated the number of job-years created from 1988 to 2000 by the publicly- assisted program Kansas Venture Capital, Inc. (KVCI). The impact of KVCI in job-years generated was measured net of hypothetical job growth under three alternative scenarios: portfolio firms failed without KVCI fundings, firms followed their national industry employment patterns without KVCI funding, or firms followed the employment change patterns of a comparison set of Kansas businesses. Duration model estimation results indicated that KVCI portfolio firms had significantly higher survival rates than comparison Kansas firms. The number of jobyears created and saved credited to KVCI investments varied from 391 to 13,576 and the cost per job year created and saved ranged from $296 to $10,281 depending on assumptions of firm employment change in the absence of KVCI investments. The findings indicate that impact assessment results are highly sensitive to underlying assumptions.

Suggested Citation

  • Barkley, David L. & DiFurio, Ferdinand & Leatherman, John C., 2004. "The Role of A Public Venture Capital Program in State Economic Development: The Case of Kansas Venture Capital, Inc," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 34(4), pages 1-24.
    • Handle: RePEc:ags:jrapmc:132296
    DOI: 10.22004/ag.econ.132296
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/132296/files/04-2-5.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.132296?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. John R. Baldwin & Paul K. Gorecki, 1991. "Firm Entry and Exit in the Canadian Manufacturing Sector, 1970-1982," Canadian Journal of Economics, Canadian Economics Association, vol. 24(2), pages 300-323, May.
    2. Kevin T. Leicht & J. Craig Jenkins, 1994. "Three Strategies of State Economic Development: Entrepreneurial, Industrial Recruitment, and Deregulation Policies in the American States," Economic Development Quarterly, , vol. 8(3), pages 256-269, August.
    3. Daniel Felsenstein & Joseph Persky, 1999. "When is a Cost Really a Benefit? Local Welfare Effects and Employment Creation in the Evaluation of Economic Development Programs," Economic Development Quarterly, , vol. 13(1), pages 46-54, February.
    4. Veronique A.J.M. Schutjens & Egbert Wever, 2000. "Determinants of new firm success," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(2), pages 135-153.
    5. Edgar Parker & Phillip Todd Parker, 1998. "Venture capital investment: Emerging force in the Southeast," Economic Review, Federal Reserve Bank of Atlanta, vol. 83(Q 4), pages 36-47.
    6. Peter Eisinger, 1991. "The State of State Venture Capitalism," Economic Development Quarterly, , vol. 5(1), pages 64-76, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David L. Barkley & Deborah M. Markley & Julia Sass Rubin, 2001. "Certified Capital Companies (CAPCOs): Strengths and Shortcomings of the Latest Wave in State-Assisted Venture Capital Programs," Economic Development Quarterly, , vol. 15(4), pages 350-366, November.
    2. Blessing Atwine & Ibrahim Mike Okumu & John Bosco Nnyanzi, 2023. "What drives the dynamics of employment growth in firms? Evidence from East Africa," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-25, December.
    3. Lahoucine Outolba & Abdelhaq Lahfidi, 2021. "Success factors of very small businesses in regulated context: Case of Moroccan insurance brokers," Post-Print hal-03363167, HAL.
    4. Enrico Santarelli & Marco Vivarelli, 2007. "Entrepreneurship and the process of firms’ entry, survival and growth," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(3), pages 455-488, June.
    5. Gopinath, Gita, 2004. "Lending booms, sharp reversals and real exchange rate dynamics," Journal of International Economics, Elsevier, vol. 62(1), pages 1-23, January.
    6. Francesco Quatraro & Marco Vivarelli, 2015. "Drivers of Entrepreneurship and Post-entry Performance of Newborn Firms in Developing Countries," The World Bank Research Observer, World Bank, vol. 30(2), pages 277-305.
    7. Josep-Maria Arauzo-Carod & Agustí Segarra-Blasco, 2005. "The Determinants of Entry are not Independent of Start-up Size: Some Evidence from Spanish Manufacturing," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 27(2), pages 147-165, September.
    8. Jason P. Brown & Dayton M. Lambert & Raymond J. G. M. Florax, 2013. "The Birth, Death, and Persistence of Firms: Creative Destruction and the Spatial Distribution of U.S. Manufacturing Establishments, 2000–2006," Economic Geography, Clark University, vol. 89(3), pages 203-226, July.
    9. Yang, Qing Gong & Temple, Paul, 2012. "Reform and competitive selection in China: An analysis of firm exits," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 286-299.
    10. Hanqiao Zhang, 2024. "Exit Spillovers of Foreign-invested Enterprises in Shenzhen's Electronics Manufacturing Industry," Papers 2404.18009, arXiv.org.
    11. David B. Audretsch & Patrick Houweling & A. Roy Thurik, 1997. "New Firm Survival: Industry versus Firm Effects," Tinbergen Institute Discussion Papers 97-063/3, Tinbergen Institute.
    12. Younes Ben Zaied & Siagh Ahmed Ramzi, 2012. "Les déterminants du succès entrepreneurial ; Une étude empirique de la région de Sfax en Tunisie," Economics Working Paper Archive (University of Rennes & University of Caen) 201235, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    13. Kovenock, Dan & Phillips, Gordon M, 1997. "Capital Structure and Product Market Behavior: An Examination of Plant Exit and Investment Decisions," The Review of Financial Studies, Society for Financial Studies, vol. 10(3), pages 767-803.
    14. John Baldwin & Amélie Lafrance, 2014. "Firm Turnover and Productivity Growth in Canadian Manufacturing and Services Industries, 2000 to 2007," Journal of Industry, Competition and Trade, Springer, vol. 14(2), pages 173-205, June.
    15. Eldenburg, Leslie G. & Price, Richard A. & Román, Francisco J., 2019. "An exploratory study of factors affecting the longevity of manufacturing operations offshore," Accounting, Organizations and Society, Elsevier, vol. 75(C), pages 59-78.
    16. Andrew M. Isserman, 1993. "State Economic Development Policy and Practice in the United States: A Survey Article," International Regional Science Review, , vol. 16(1-2), pages 49-100, April.
    17. Farasat A. S. Bokhari & Franco Mariuzzo & Anna Rita Bennato, 2021. "Innovation and growth in the UK pharmaceuticals: the case of product and marketing introductions," Small Business Economics, Springer, vol. 57(1), pages 603-634, June.
    18. Besnik A. Krasniqi & Muhamet Mustafa, 2016. "Small firm growth in a post-conflict environment: the role of human capital, institutional quality, and managerial capacities," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1165-1207, December.
    19. Manjon, M.C., 2004. "Firm Size and Short-Term Dynamics in Aggregate Entry and Exit," Other publications TiSEM 2e3efce2-87b3-4b7a-aa83-7, Tilburg University, School of Economics and Management.
    20. Allen N. Berger & Seth D. Bonime & Lawrence G. Goldberg & Lawrence J. White, 1999. "The Dymanics of Market Entry: The Effects of Mergers and Acquisitions on De Novo Entry and Small Business Lending in the Banking Industry," Working Papers 99-13, New York University, Leonard N. Stern School of Business, Department of Economics.

    More about this item

    Keywords

    Financial Economics;

    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:ags:jrapmc:132296. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/mcrsaea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.