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Credit Constraints, Entrepreneurial Talent, and Economic Development

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  • Milo Bianchi

Abstract

In this paper, we formalize the view that economic development requires high rates of productive entrepreneurship, and this requires an efficient matching between entrepreneurial talent and production technologies. We first explore the role of financial development in promoting such efficient allocation of talent, which results in higher production, job creation and social mobility.

Suggested Citation

  • Milo Bianchi, 2009. "Credit Constraints, Entrepreneurial Talent, and Economic Development," WIDER Working Paper Series RP2009-20, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2009-20
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    2. Garcia-Murillo, Martha & Velez-Ospina, Jorge Andres & Vargas-Leon, Patricia, 2012. "Where should governments invest? The impact of economic, political, social and technological factors on the formation of new firms," 23rd European Regional ITS Conference, Vienna 2012 60400, International Telecommunications Society (ITS).
    3. Lijun Zhang & Wenlin Gao & Xiaoxiao Ma & Rongrong Gong, 2023. "Relationship between Disaster Shock Experience and Farmers’ Entrepreneurial Inclination: Crisis or Opportunity?," Agriculture, MDPI, vol. 13(7), pages 1-26, July.
    4. Chun Jiang & Amei Feng & Chunhuan Xiao, 2021. "Does Capital Account Liberalization Spur Entrepreneurship: The Role of Financial Development," Sustainability, MDPI, vol. 13(16), pages 1-19, August.
    5. Afra Hameli & Ilias Kampouris & Amal Kamal Machaal & Charilaos Mertzanis, 2021. "Financial Development, Institutions, Gender and Entrepreneurship in the United Arab Emirates," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 11(2), pages 11-22, February.
    6. Victor T. Ojapinwa & Dami Lawani, 2022. "Diaspora Remittances, Renewable Energy and Enterprise Growth in Nigeria," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 25(83), pages 57-73, June.
    7. Yang Ming & Heng-fu Zou, 2024. "The Spirit of Capitalism, Entrepreneurship, and Talent Allocation," Annals of Economics and Finance, Society for AEF, vol. 25(1), pages 1-29, May.
    8. Chenjing Zhang & Qiaoge Li & Di Mao & Mancang Wang, 2023. "Research on the Threshold Effect of Internet Development on Regional Inclusive Finance in China," Sustainability, MDPI, vol. 15(8), pages 1-20, April.
    9. Calá, Carla Daniela & Arauzo-Carod, Josep-Maria & Manjón-Antolín, Miguel, 2015. "The determinants of entrepreneurship in developing countries," Nülan. Deposited Documents 2125, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    10. Yilmaz Bayar & Marius Dan Gavriletea & Zeki Ucar, 2018. "Financial Sector Development, Openness, and Entrepreneurship: Panel Regression Analysis," Sustainability, MDPI, vol. 10(10), pages 1-11, September.
    11. Sorgner, Alina & Wyrwich, Michael, 2022. "Calling Baumol: What telephones can tell us about the allocation of entrepreneurial talent in the face of radical institutional changes," Journal of Business Venturing, Elsevier, vol. 37(5).
    12. Abdul, Daud & Wenqi, Jiang & Sameeroddin, Mohd, 2023. "Prioritization of ecopreneurship barriers overcoming renewable energy technologies promotion: A comparative analysis of novel spherical fuzzy and Pythagorean fuzzy AHP approach," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    13. Bai, Hengrui & Wu, Yiming & Wang, Ruiqian, 2023. "Does digital financial inclusion lead to regional differences in trade credit financing?: A quasi-natural experiment," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1475-1489.
    14. Hao, Yunping & Zhang, Bing, 2024. "The impact of digital financial usage on resident’s income inequality in China: An empirical analysis based on CHFS data," Journal of Asian Economics, Elsevier, vol. 91(C).
    15. Liu, Mengsha & Jiang, Yan & Wei, Xiaokun & Ruan, Qingsong & Lv, Dayong, 2023. "Effect of high-speed rail on entrepreneurial activities: Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    16. Calá, Carla Daniela, 2014. "Regional issues on firm entry and exit in Argentina: core and peripheral regions," Nülan. Deposited Documents 2023, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    17. Gabriel, Cle-Anne, 2016. "What is challenging renewable energy entrepreneurs in developing countries?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 362-371.
    18. Zhang, Weiying & Cooper, W.W. & Deng, Honghui & Parker, Barnett R. & Ruefli, Timothy W., 2010. "Entrepreneurial talent and economic development in China," Socio-Economic Planning Sciences, Elsevier, vol. 44(4), pages 178-192, December.
    19. Xiuxiu Jiang & Xia Wang & Jia Ren & Zhimin Xie, 2021. "The Nexus between Digital Finance and Economic Development: Evidence from China," Sustainability, MDPI, vol. 13(13), pages 1-17, June.
    20. Junxiu Sun & Feng Wang & Haitao Yin & Rui Zhao, 2022. "Death or rebirth? How small‐ and medium‐sized enterprises respond to responsible investment," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1749-1762, May.
    21. Pierrick Baraton & Florian Léon, 2016. "Financial Constraint, Entrepreneurship and Sectoral Migrations," DEM Discussion Paper Series 16-09, Department of Economics at the University of Luxembourg.
    22. Fang Xu & Xiaoru Zhang & Di Zhou, 2024. "Does digital financial inclusion reduce the risk of returning to poverty? Evidence from China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 2927-2949, July.
    23. Saraswat, Deepak, 2011. "Effect of employment guarantee on access to credit: Evidence from rural India," MPRA Paper 34671, University Library of Munich, Germany, revised 13 Nov 2011.
    24. Calub, Renz Adrian, 2011. "Linking Financial Development and Total Factor Productivity of the Philippines," MPRA Paper 66042, University Library of Munich, Germany.

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    More about this item

    Keywords

    Credit; Economic development; Entrepreneurship; Human capital;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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