Credit-Constrained in Risky Activities?

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dc.creatorGrimm, Michael
dc.creatorLange, Simon
dc.creatorLay, Jann
dc.date2017-05-30T20:58:40Z
dc.date2017-05-30T20:58:40Z
dc.date2012-05
dc.date.accessioned2026-07-01T01:04:34Z
dc.descriptionMicro and Small Enterprises (MSEs) in developing countries are typically considered to be severely credit constrained. Additionally, high business risks may partly explain why capital stocks of MSEs remain low. This article analyzes the determinants of capital stocks of MSEs in poor economies focusing on credit constraints and risk. The analysis is based on a unique, albeit cross sectional but backward looking, micro data set on MSEs covering the economic capitals of seven West-African countries. The main result is that capital market imperfections indeed seem to explain an important part of the variation in capital stocks in the early lifetime of MSEs. Furthermore, the analyses show that risk plays a key role for capital accumulation. Risk-averse individuals seem to adjust their initially low capital stocks upwards when enterprises grow older. MSEs in risky activities owned by wealthy individuals even seem to over-invest when they start their business and adjust capital stocks downwards subsequently. As other firms simultaneously suffer from capital shortages, such behavior may imply large inefficiencies.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/845991468340169255/Credit-constrained-in-risky-activities-the-determinants-of-capital-stocks-of-micro-and-small-firms-in-Western-Africa
dc.identifierhttps://hdl.handle.net/10986/26786
dc.identifierhttps://doi.org/10.1596/26786
dc.identifier.urihttp://hdl.handle.net/123456789/414999
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo
dc.rightsWorld Bank
dc.subjectACCESS TO CAPITAL
dc.subjectACCESS TO CREDIT
dc.subjectACCESS TO FINANCE
dc.subjectACCESS TO FORMAL CREDIT
dc.subjectACCOUNTS
dc.subjectACCUMULATION RATE
dc.subjectADVANCED ECONOMIES
dc.subjectADVANCED ECONOMY
dc.subjectAGRICULTURAL ECONOMICS
dc.subjectBANK CREDIT
dc.subjectBANK POLICY
dc.subjectBARRIERS TO ENTRY
dc.subjectBIASES
dc.subjectBORROWING
dc.subjectBUSINESS ACTIVITIES
dc.subjectBUSINESS ACTIVITY
dc.subjectBUSINESS ASSOCIATIONS
dc.subjectBUSINESS ECONOMICS
dc.subjectBUSINESS OWNERS
dc.subjectBUSINESS RISK
dc.subjectBUSINESS RISKS
dc.subjectCAPACITY BUILDING
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL CONSTRAINT
dc.subjectCAPITAL CONSTRAINTS
dc.subjectCAPITAL COST
dc.subjectCAPITAL COSTS
dc.subjectCAPITAL INJECTION
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCAPITAL RETURNS
dc.subjectCAPITAL SHORTAGES
dc.subjectCAPITAL STOCK
dc.subjectCAPITAL STOCKS
dc.subjectCHECKS
dc.subjectCOLLATERAL
dc.subjectCONTRACTUAL OBLIGATIONS
dc.subjectCOST OF CAPITAL
dc.subjectCREDIT CONSTRAINED FIRMS
dc.subjectCREDIT CONSTRAINT
dc.subjectCREDIT CONSTRAINTS
dc.subjectCREDIT HISTORY
dc.subjectCREDIT INSTITUTIONS
dc.subjectCREDIT MARKET
dc.subjectCREDIT MARKETS
dc.subjectCREDIT RATIONING
dc.subjectDEGREES OF RISK
dc.subjectDEMOGRAPHIC CHARACTERISTICS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDIVERSIFICATION
dc.subjectDUMMY VARIABLE
dc.subjectDUMMY VARIABLES
dc.subjectDURABLE
dc.subjectDURABLE GOODS
dc.subjectEARNINGS
dc.subjectECONOMETRIC MODELS
dc.subjectECONOMIC CONSTRAINTS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC POLICIES
dc.subjectECONOMIC STATISTICS
dc.subjectENDOWMENTS
dc.subjectENTERPRISE PERFORMANCE
dc.subjectENTREPRENEUR
dc.subjectENTREPRENEURIAL ACTIVITIES
dc.subjectENTREPRENEURIAL ACTIVITY
dc.subjectENTREPRENEURS
dc.subjectENTRY BARRIERS
dc.subjectEQUIPMENT
dc.subjectEXCESSIVE RISK
dc.subjectEXPECTED UTILITY
dc.subjectEXPECTED VALUE
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXTERNAL FINANCE
dc.subjectFAMILY FINANCE
dc.subjectFAMILY LOANS
dc.subjectFARMERS
dc.subjectFEMALE ENTREPRENEURS
dc.subjectFINANCIAL MEANS
dc.subjectFINANCIAL RESOURCES
dc.subjectFINANCIAL SUPPORT
dc.subjectFIXED COSTS
dc.subjectFORMAL BANKS
dc.subjectGDP
dc.subjectGROUP OF FIRMS
dc.subjectGROWTH THEORY
dc.subjectHIGH INTEREST RATES
dc.subjectHOLDING
dc.subjectHOUSEHOLD WEALTH
dc.subjectHOUSEHOLDS
dc.subjectHUMAN CAPITAL
dc.subjectINCOME GROWTH
dc.subjectINFORMATION ASYMMETRIES
dc.subjectINFORMATION ON ENTREPRENEURS
dc.subjectINFORMATION ON INVESTMENT
dc.subjectINSTRUMENT
dc.subjectINSURANCE
dc.subjectINSURANCE MARKET
dc.subjectINSURANCE MARKETS
dc.subjectINSURANCE PRODUCTS
dc.subjectINTEREST RATE
dc.subjectINTERNAL FINANCE
dc.subjectINTERNAL FUNDS
dc.subjectINVENTORIES
dc.subjectINVENTORY
dc.subjectINVESTING
dc.subjectINVESTMENT BEHAVIOR
dc.subjectJOB CREATION
dc.subjectLABOR FORCE SURVEY
dc.subjectLABOR MARKET
dc.subjectLABOR MARKETS
dc.subjectLACK OF ACCESS
dc.subjectLEVEL OF RISK
dc.subjectLIQUID WEALTH
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY CONSTRAINT
dc.subjectLIQUIDITY CONSTRAINTS
dc.subjectLIQUIDITY PREMIUM
dc.subjectLIQUIDITY PROBLEMS
dc.subjectLOAN
dc.subjectLOTTERY
dc.subjectMARGINAL COST
dc.subjectMARGINAL PRODUCT
dc.subjectMARGINAL UTILITY
dc.subjectMARGINAL UTILITY OF CONSUMPTION
dc.subjectMARKET CONSTRAINTS
dc.subjectMARKET ECONOMY
dc.subjectMARKET FAILURE
dc.subjectMARKET FAILURES
dc.subjectMARKET INTEREST RATE
dc.subjectMARKET INTEREST RATES
dc.subjectMICRO DATA
dc.subjectMICRO ENTERPRISES
dc.subjectMICRO-CREDIT
dc.subjectMICRO-ENTERPRISE
dc.subjectMICRO-FINANCE
dc.subjectMICRO-FINANCE INSTITUTIONS
dc.subjectMICROCREDIT
dc.subjectMICROENTERPRISES
dc.subjectMIDDLE INCOME COUNTRIES
dc.subjectMONEY LENDERS
dc.subjectMONEYLENDERS
dc.subjectMORAL HAZARD
dc.subjectOPPORTUNITY COST
dc.subjectOPPORTUNITY COSTS
dc.subjectPHYSICAL CAPITAL
dc.subjectPOLITICAL ECONOMY
dc.subjectPORTFOLIO
dc.subjectPRICE RISK
dc.subjectPRICE UNCERTAINTY
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTIVE INVESTMENT
dc.subjectPROFITABILITY
dc.subjectPURCHASING POWER
dc.subjectPURCHASING POWER PARITY
dc.subjectRATE OF RETURN
dc.subjectRATES OF RETURN
dc.subjectRECEIPTS
dc.subjectREINVESTMENT
dc.subjectRETAINED EARNINGS
dc.subjectRISK AVERSION
dc.subjectRISK PERCEPTIONS
dc.subjectRISK PREMIUM
dc.subjectRISK-AVERSE INDIVIDUALS
dc.subjectSAFE ASSET
dc.subjectSAVINGS
dc.subjectSELF-EMPLOYMENT
dc.subjectSMALL BUSINESS
dc.subjectSMALL ENTERPRISES
dc.subjectSMALL-SCALE ENTREPRENEURS
dc.subjectSOURCE OF CREDIT
dc.subjectSOURCES OF FINANCE
dc.subjectSTART-UP
dc.subjectTAX
dc.subjectTAXIS
dc.subjectTRADE SECTOR
dc.subjectTRADING
dc.subjectTRANSITION COUNTRY
dc.subjectTRANSITION ECONOMY
dc.subjectTRUST FUND
dc.subjectUNION
dc.subjectVALUE ADDED
dc.subjectWEALTH
dc.titleCredit-Constrained in Risky Activities?
dc.titleThe Determinants of Capital Stocks of Micro and Small Firms in Western Africa
dc.typeWorking Paper
dc.typeDocument de travail
dc.typeDocumento de trabajo

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