The Recent Financial Crisis, Start‐Up Financing and Survival

24 Pages Posted: 3 Aug 2018

See all articles by Marc Deloof

Marc Deloof

University of Antwerp; University of Antwerp - Antwerp Management School

Tom R. Vanacker

Ghent University; University of Exeter Business School

Date Written: July/August 2018

Abstract

We investigate the effects of the recent financial crisis on start‐up financing and survival using a dataset that covers all Belgian new business registrations between 2006 and 2009. We find that bank debt is the single most important source of funding, even for start‐ups founded during the crisis. However, start‐ups founded in crisis years use less bank debt and have a higher likelihood of bankruptcy, even after controlling for their creditworthiness. These effects are stronger for start‐ups that are more dependent on bank debt, such as start‐ups founded in bank dependent industries and start‐ups founded by entrepreneurs who are more likely to be financially constrained.

Keywords: credit availability, entrepreneurial finance, financial crisis, start‐up financing, survival

Suggested Citation

Deloof, Marc and Vanacker, Tom R., The Recent Financial Crisis, Start‐Up Financing and Survival (July/August 2018). Journal of Business Finance & Accounting, Vol. 45, Issue 7-8, pp. 928-951, 2018, Available at SSRN: https://ssrn.com/abstract=3225474 or http://dx.doi.org/10.1111/jbfa.12319

Marc Deloof (Contact Author)

University of Antwerp ( email )

Prinsstraat 13
Faculteit TEW
Antwerpen, 2000
Belgium
+32 3 265 41 69 (Phone)
+32 3 265 47 99 (Fax)

HOME PAGE: http://https://www.uantwerpen.be/en/staff/marc-deloof/

University of Antwerp - Antwerp Management School ( email )

Boogkeers 5
Antwerp, 2000
Belgium

Tom R. Vanacker

Ghent University ( email )

Sint-Pietersplein 7
Gent, 9000
Belgium

University of Exeter Business School ( email )

Streatham Court
Exeter, EX4 4JH
United Kingdom

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