Understanding under which conditions microcredit is used by new, growing ventures is becoming increasingly pertinent to scholars. This paper investigates the interplay of the use of microcredit with entrepreneurial capabilities and the moderating role of institutional development in sub-Saharan Africa. Our findings show that higher constraints to entrepreneurial capabilities are associated with higher use of microcredit. In addition, we find that new, growing ventures use microcredit more where either economic or political institutions are less developed. Our findings suggest the importance of the existence of some type of institutional strength that must be in place to form the basis for microcredit activity. This allows for speculation as to whether microcredit works as the literature currently assumes.
- entrepreneurial finance
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- Management - Professor
- Institute for Policy Research (IPR)
- Strategy & Organisation
- Centre for Business, Organisations and Society (CBOS)
- Centre for Research in Entrepreneurship and Innovation at Bath
- EPSRC Centre for Doctoral Training in Cyber Security
- EPSRC Centre for Doctoral Training in Advanced Automotive Propulsion Systems (AAPS CDT)
- Institute for Advanced Automotive Propulsion Systems (IAAPS)
- Centre for Future of Work
Person: Research & Teaching, Affiliate staff