Baliamoune-Lutz, Mina; Brixiova, Zuzana; Ndikumana, Léonce - 2011
Limited access of entrepreneurs to credit constrains the creation and growth of private firms. In Africa, access to … that can be used as collateral. This paper presents a model where firm creation and growth hinge on matching potential … entrepreneurs with productive technologies, while firm growth depends on acquired capital. The shortage of collateral creates a …