START-UP FINANCING:A COMPARATIVE PERSPECTIVE

We investigate the determinants of start-up financing in 41 countries, using theGlobal Entrepreneurship Monitor surveys for 1998-20032. High quality of property rightsincreases both the total volume of finance and the use of external finance for theindividual start-up. The size of the formal financial sector affects the start-up finance viaenhancing the volume of self-finance. In addition, the use of external finance by start-upscorrelates with the extent of financial restrictions in a country in a non-linear way. Supplyof informal finance may to some extent substitute for the use of formal finance.....