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The Impact of Venture Capital on Business Dynamics in Europe and the United States

Kienlein, Tobias LU (2015) EKHM51 20151
Department of Economic History
Abstract
The venture capital industry is seen to be favourable for an economy’s business dynamics. Using a panel of 23 countries over 2004 – 2012, the thesis explores the linkage of venture capital with firm births, employment in newly born firms and survival rates. The aggregate approach allows considering the implicit multiplier effect of VC. The thesis proposes a reconsideration of venture capital for economic policy. Venture capital appears not to drive firm births and the effect on employment is rather weak. However, a strong linkage with firm survival in a country is found. This indicates that venture capital is rather important for late stage finance and the abatement of failures of young firms than for finance in the early stage and... (More)
The venture capital industry is seen to be favourable for an economy’s business dynamics. Using a panel of 23 countries over 2004 – 2012, the thesis explores the linkage of venture capital with firm births, employment in newly born firms and survival rates. The aggregate approach allows considering the implicit multiplier effect of VC. The thesis proposes a reconsideration of venture capital for economic policy. Venture capital appears not to drive firm births and the effect on employment is rather weak. However, a strong linkage with firm survival in a country is found. This indicates that venture capital is rather important for late stage finance and the abatement of failures of young firms than for finance in the early stage and business creation. (Less)
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author
Kienlein, Tobias LU
supervisor
organization
course
EKHM51 20151
year
type
H1 - Master's Degree (One Year)
subject
keywords
Venture capital, business dynamics, multiplier effect, firm birth, employment, firm survival
language
English
id
5473868
date added to LUP
2015-06-25 12:34:17
date last changed
2015-06-25 12:34:17
@misc{5473868,
  abstract     = {The venture capital industry is seen to be favourable for an economy’s business dynamics. Using a panel of 23 countries over 2004 – 2012, the thesis explores the linkage of venture capital with firm births, employment in newly born firms and survival rates. The aggregate approach allows considering the implicit multiplier effect of VC. The thesis proposes a reconsideration of venture capital for economic policy. Venture capital appears not to drive firm births and the effect on employment is rather weak. However, a strong linkage with firm survival in a country is found. This indicates that venture capital is rather important for late stage finance and the abatement of failures of young firms than for finance in the early stage and business creation.},
  author       = {Kienlein, Tobias},
  keyword      = {Venture capital,business dynamics,multiplier effect,firm birth,employment,firm survival},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Impact of Venture Capital on Business Dynamics in Europe and the United States},
  year         = {2015},
}