Samila Sorenson (2011) - Venture Capital Entrepreneurship And Economic Growth
Jump to navigation
Jump to search
| Article | |
|---|---|
| Has bibtex key | |
| Has article title | Venture Capital Entrepreneurship And Economic Growth |
| Has author | Samila Sorenson |
| Has year | 2011 |
| In journal | |
| In volume | |
| In number | |
| Has pages | |
| Has publisher | |
| © edegan.com, 2016 | |
- This page is referenced in The NBER Entrepreneurship Research Boot Camp Page
Reference(s)
- Samila, Sampsa and Olav Sorenson (2011), "Venture Capital, Entrepreneurship, and Economic Growth", Review of Economics and Statistics, 93: 338-349 pdf
Abstract
Using a panel of U.S. metropolitan areas, we find that increases in the supply of venture capital positively affect firm starts, employment, and aggregate income. Our results remain robust to a variety of specifications, including ones that address endogeneity. The estimated magnitudes imply that venture capital stimulates the creation of more firms than it funds, which appears consistent with two mechanisms: First, would-be entrepreneurs anticipating financing needs more likely start firms when the supply of capital expands. Second, funded companies may transfer know-howto their employees, thereby enabling spin-offs, and may encourage others to become entrepreneurs through demonstration effects.
