Take-up and variation of advice for new firm founders in different local contexts
| Autor: | Joan-Lluis Capelleras, Kevin F. Mole |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Actuarial science
Public Administration business.industry 05 social sciences Geography Planning and Development Public sector 0211 other engineering and technologies 021107 urban & regional planning Probit 02 engineering and technology Variance (accounting) Management Monitoring Policy and Law Environmental Science (miscellaneous) Private sector Information asymmetry Variation (linguistics) Probit model 0502 economics and business Economics HD28 business 050203 business & management Market failure |
| Zdroj: | Environment and Planning C: Politics and Space. 36:3-27 |
| ISSN: | 2399-6552 2399-6544 |
| DOI: | 10.1177/2399654417691514 |
| Popis: | Although business advice has been linked to entrepreneurial outcomes, it is subject to information asymmetries and market failure. We argue that the knowledge concerning from whom to take advice before starting a new firm is more easily accessed in areas with high start-up rates which therefore ameliorates market failure. The study is based on surveys of 599 new firm founders in England and 381 new firm founders in Catalonia. A series of probit and heteroskedastic probit models are employed to investigate not only the probability of taking advice but also the variance in that probability, which reflects uncertainty. Supporting our view, the findings show that the taking of advice in the places with higher start-up rates exhibit less variation compared to other localities. We also find differing effects of place on the take up and variation of private sector and public sector advice. Implications from the findings are discussed |
| Databáze: | OpenAIRE |
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