How does entrepreneurial activity affect the supply of informal investors?

Burke, Andrew; Hartog, Chantal; Stel, André van; Suddle, Kashifa

doi:10.1080/13691060903435775

Cited by 17 publications

(20 citation statements)

References 33 publications

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“…Informal investors include those who have a close relationship with the entrepreneur (family and friends), and those who have no personal relationship with the entrepreneur (so-called angels) (Shane, 2009). Using data from 28 developed countries, Burke et al (2010) found that entrepreneurial activities boost the supply of informal investment;…”

Section: Informal Investors and Investment Decisionsmentioning

confidence: 99%

“…The TEA index measures the proportion of a nation's adult population that is engaged in entrepreneurial activities, including starting up a business or running a newly formed business. A country active in entrepreneurship should enjoy strong investment interest among its populace (Burke et al, 2010). In the subsequent tests on robustness, we also studied possible confounding effects cultural values, looking into cultural dimensions that are related to social trust and business transactions (Lim et al, 2004;Li and Zahra, 2012), namely power distance (PDI), individualismcollectivism (IDV), and uncertainty avoidance (UAI) (Hofstede, 1991).…”

Section: Control Variablesmentioning

confidence: 99%

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Social trust and angel investors' decisions: A multilevel analysis across nations

Ding

Chiang

2015

Journal of Business Venturing

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Section: Informal Investors and Investment Decisionsmentioning

confidence: 99%

Section: Control Variablesmentioning

confidence: 99%

Social trust and angel investors' decisions: A multilevel analysis across nations

Ding

Chiang

2015

Journal of Business Venturing

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“…Researchers find that BA market activity is highly heterogeneous in different countries (Burke et al, 2008;Landstrom and Mason, 2016;Prohorovs et al, 2019). Researchers of BAND network (2015) observe that BA markets are diverse and are characterized by different degree of maturity.…”

Section: Literature Reviewmentioning

confidence: 99%

Assessment of business angel activity in Northern European countries

Prohorovs¹,

Fainglozs²

2019

Economic Science for Rural Development

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Business angels are one of the main sources of financing for innovative start-up companies. In this regard, it has been discussed in the existing literature that policy-makers and stakeholders are in great need for a tool to measure the level and scale of the development of the business angel market. It has been also mentioned that business angel activity in different countries is highly heterogeneous. However, so far in the existing literature the comparison of the level of business angel activity in the countries of Northern Europe has not been made. Therefore, the aim of our research is to compare the level of the visible business angel market activity in Northern European countries. To conduct a comparative assessment of the business angels' activity, we used the Business Angel Activity Index calculation methodology developed by us. In this methodology, we justified the set of indicators and the weight of indicators for the calculation of the composite index. We have discovered that in 2016-2017 Estonia and Finland demonstrated the highest level of business angel activity among the countries of Northern Europe. We have also established that population size, the size of economy and GDP per capita rate in the Northern European countries are not the main factors that have a considerable impact on the level of business angel activity. Moreover, we confirm that business angel activity in the countries of Northern Europe is highly heterogeneous. We have also found that high scores of the ratio of the number of business angels to the working population in particular countries do not guarantee high level of business angel investment activity in these countries. The paper also discusses the number of factors ensuring high business angel activity.

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“…Burke et al . () studied the determinant of the volume of informal finance for business start‐ups. They used data on 126,189 individuals in 21 highly developed countries in the period 2002–2006.…”

Section: The Role Of Informal Financementioning

confidence: 99%

“…Informal venture fi nance is the main source of external equity fi nance for business start-ups ( Berger and Udell, 1998 ;Bygrave et al ., 2003 ). Burke et al . ( 2010 ) studied the determinant of the volume of informal fi nance for business start-ups.…”

Section: The Role Of Informal Fi Nancementioning

confidence: 99%