Financing entrepreneurship in times of crisis : exploring the impact of Covid-19 on the market for entrepreneurial finance in the UK
Date
01/08/2020Metadata
Show full item recordAbstract
This commentary explores the manner in which the current COVID-19 crisis is affecting key sources of entrepreneurial finance in the United Kingdom. We posit that the unique relational nature of entrepreneurial finance may make it highly susceptible to such a shock owing to the need for face-to-face interaction between investors and entrepreneurs. The article explores this conjecture by scrutinising a real-time data source of equity investments. Our findings suggest that the volume of new equity transactions in the United Kingdom has declined markedly since the outbreak of the COVID-19 pandemic. It appears that seed finance is the main type of entrepreneurial finance most acutely affected by the crisis, which typically goes to the most nascent entrepreneurial start-ups facing the greatest obstacles obtaining finance. Policy makers can utilise these real-time data sources to help inform their strategic policy interventions to assist the firms most affected by crisis events.
Citation
Brown , R , Rocha , A & Cowling , M 2020 , ' Financing entrepreneurship in times of crisis : exploring the impact of Covid-19 on the market for entrepreneurial finance in the UK ' , International Small Business Journal , vol. 38 , no. 5 , pp. 380-390 . https://doi.org/10.1177/0266242620937464
Publication
International Small Business Journal
Status
Peer reviewed
ISSN
0266-2426Type
Journal article
Collections
Items in the St Andrews Research Repository are protected by copyright, with all rights reserved, unless otherwise indicated.
Related items
Showing items related by title, author, creator and subject.
-
Finance-growth nexus and dual-banking systems : relative importance of Islamic banks
Abedifar, Pejman; Hasan, Iftekhar; Tarazi, Amine (2016-12) - Journal articleThis paper investigates the relative importance of Islamic banks, alongside their conventional counterparts, in relation to banking and financial development and economic welfare. Using a sample of 22 Muslim countries, ... -
Calibration of the chaotic interest rate model
Tsujimoto, Tsunehiro (University of St Andrews, 2010-11-30) - ThesisIn this thesis we establish a relationship between the Potential Approach to interest rates and the Market Models. This relationship allows us to derive the dynamics of forward LIBOR rates and forward swap rates by modelling ... -
Banking in times of climate change : next steps for UK’s financial regulators
Sensenbrenner, Emilia Noa (2022-11-29) - ThesisThe transition to net zero greenhouse gas emissions by 2050 requires a step change in bank lending behaviour. This policy report contributes to the wider sustainable development debate by investigating the next steps UK’s ...