Carolina Dams, Virginia Sarria Allende and María José Murcia
This paper aims to examine the relative performance of multilateral development banks venture capital funds (MDBVCs) compared to that of government-sponsored venture capital funds…
Abstract
Purpose
This paper aims to examine the relative performance of multilateral development banks venture capital funds (MDBVCs) compared to that of government-sponsored venture capital funds (GVCs), assessing their impact on invested start-ups.
Design/methodology/approach
First, the authors survey the literature to understand the performance drivers of public programs designed to foster venture capital (VC). Second, the authors analyze the characteristics of multilateral development banks (MDBs) VC-related efforts. Third, based on their goals, structure, governance and management processes, the authors propose and test the hypothesis that MDBs initiatives outperform comparable public programs, overcoming the main limitations of the latter.
Findings
The authors find that start-ups funded by MDBVCs outperform GVC-funded start-ups in terms of access to subsequent financing and international expansion. Consistent with previous studies, the authors find that start-ups funded by private VCs show the highest levels of performance.
Originality/value
The paper features an unstudied actor – i.e. MDBVCs-, and an unstudied region – i.e., Latin America-, using a unique data set of 437 start-ups that received VC investments in 7 Latin American countries during the study period 2000–2018.
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Keywords
Matt Hill, Katerina Hill, Lorenzo Preve and Virginia Sarria-Allende
The purpose of this paper is to examine whether the level of financial credit available in a country influences the level of trade credit provided to customers.
Abstract
Purpose
The purpose of this paper is to examine whether the level of financial credit available in a country influences the level of trade credit provided to customers.
Design/methodology/approach
The authors examine the association between the supply of trade credit and the availability of country-level private financial credit using multivariate regression models that account for country-level heterogeneity, macroeconomic conditions and firm-specific characteristics. The data set is a pooled sample of publicly traded firms incorporated in 66 countries.
Findings
Supporting the re-distributional view of trade credit, robust results suggest that suppliers incorporated in countries with increased access to financial credit provide increased trade credit to their customers. Further results indicate significant differences in trade credit usage across geographical regions. Consistent with existing research using samples of US firms, the use of trade credit is correlated with firm-level measures of financial constraints and product market dynamics.
Originality/value
The authors provide one of the first studies to examine differences in trade credit extension across a large number of countries.
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Mark D. Griffiths, Lisa K. Gundry and Jill R. Kickul
The purpose of this paper is to incorporate the demand and supply‐side theories of entrepreneurship development in a series of stage‐based models that analyze how macro‐level and…
Abstract
Purpose
The purpose of this paper is to incorporate the demand and supply‐side theories of entrepreneurship development in a series of stage‐based models that analyze how macro‐level and contextual variables influence social entrepreneurship activity. The paper investigates the macro‐level influences, including the socio‐political, cultural and economic factors that can stimulate or impede the emergence of social entrepreneurship. Although little research on these determinants has been conducted, this study seeks to reveal that several variables that are crucial in traditional entrepreneurial studies do not appear to significantly affect social entrepreneurship.
Design/methodology/approach
To measure social entrepreneurial activity, the authors used the Global Entrepreneurship Monitor (GEM) findings from the 2009 study. Hierarchical multiple regression was used to test three multi‐level stages of the socio‐political, economic, and cultural determinants of social entrepreneurship activity. The series of three stages for all of the variables were entered in the following order: first, socio‐political variables; second, cultural variables; third, economic variables. This approach allows the authors to explore and thus extend the previous research reviewed here, on how the economic context beyond socio‐political and cultural factors affects social enterprise activity.
Findings
A three‐stage analysis revealed that socio‐political variables accounted for 76 percent of the variance in social entrepreneurial activity. It was found that the single greatest determinant of social entrepreneurial activity is the degree of female participation in the labor force. Additional findings and implications for understanding the role of macro‐level factors on social entrepreneurship are discussed.
Originality/value
Social entrepreneurship has the potential to confront and address some of society's most challenging and complex problems arising from market and government inadequacies or failures. Social entrepreneurial firms exist within environments that are often severely resource‐constrained. Therefore, social entrepreneurs may rely on a unique set of strategies to mobilize resources available to them, such as collaboration with others and accessing social capital to generate value solutions for their communities. The growth of women's participation in the labor force is a powerful influence on social entrepreneurship activity, and with the increase in training programs and local networks to support women's business ownership, it is likely that this trend will continue and positively impact communities around the world.