We study entrepreneurs’ start-up financing from banks and local financiers. An informalnetwork, whose membership cannot be observed by outsiders, conveys the good signals itgets about the hidden types of network entrepreneurs to local financiers, which are thenreflected in different loan...

We study entrepreneurs' start-up financing from banks and local financiers. An informal network, whose membership cannot be observed by outsiders, conveys the good signals it gets about the hidden types of network entrepreneurs to local financiers, which are then reflected in different loan...