Angel investments of small family business entrepreneurs: cross-country evidence
Abstract Recent literature has focused on the venture capital investments of large family firms made through their family offices. However, evidence regarding informal venture capital provided to nascent entrepreneurs by small family businesses is scant. I contribute to the literature by modeling th...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
SpringerOpen
2025-01-01
|
| Series: | Financial Innovation |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40854-024-00700-9 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1841559178033758208 |
|---|---|
| author | Viviana Fernandez |
| author_facet | Viviana Fernandez |
| author_sort | Viviana Fernandez |
| collection | DOAJ |
| description | Abstract Recent literature has focused on the venture capital investments of large family firms made through their family offices. However, evidence regarding informal venture capital provided to nascent entrepreneurs by small family businesses is scant. I contribute to the literature by modeling the angel investments of about 30,000 family and non-family business entrepreneurs across 49 countries, who contributed about $64 million to businesses started by other entrepreneurs over a 3-year period. Based on this sample, I conclude that in countries with higher rates of small family businesses, angel investors are likely fewer, and the amounts invested in start-ups are also lower. Furthermore, I conclude that the owners/managers of small family businesses invest comparatively less capital in start-ups, irrespective of family relationships. I infer that this is attributable to the financing preferences of family businesses, which favor the use of internal resources for their continuity and the growth of their family capital. |
| format | Article |
| id | doaj-art-e0e9804b32f54525a3338aef65af2c78 |
| institution | Kabale University |
| issn | 2199-4730 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj-art-e0e9804b32f54525a3338aef65af2c782025-01-05T12:43:38ZengSpringerOpenFinancial Innovation2199-47302025-01-0111113610.1186/s40854-024-00700-9Angel investments of small family business entrepreneurs: cross-country evidenceViviana Fernandez0Universidad Adolfo Ibáñez, Escuela de NegociosAbstract Recent literature has focused on the venture capital investments of large family firms made through their family offices. However, evidence regarding informal venture capital provided to nascent entrepreneurs by small family businesses is scant. I contribute to the literature by modeling the angel investments of about 30,000 family and non-family business entrepreneurs across 49 countries, who contributed about $64 million to businesses started by other entrepreneurs over a 3-year period. Based on this sample, I conclude that in countries with higher rates of small family businesses, angel investors are likely fewer, and the amounts invested in start-ups are also lower. Furthermore, I conclude that the owners/managers of small family businesses invest comparatively less capital in start-ups, irrespective of family relationships. I infer that this is attributable to the financing preferences of family businesses, which favor the use of internal resources for their continuity and the growth of their family capital.https://doi.org/10.1186/s40854-024-00700-9Small family businessMicro-angel investorTrustFamily capitalEntrepreneurial ecosystem |
| spellingShingle | Viviana Fernandez Angel investments of small family business entrepreneurs: cross-country evidence Financial Innovation Small family business Micro-angel investor Trust Family capital Entrepreneurial ecosystem |
| title | Angel investments of small family business entrepreneurs: cross-country evidence |
| title_full | Angel investments of small family business entrepreneurs: cross-country evidence |
| title_fullStr | Angel investments of small family business entrepreneurs: cross-country evidence |
| title_full_unstemmed | Angel investments of small family business entrepreneurs: cross-country evidence |
| title_short | Angel investments of small family business entrepreneurs: cross-country evidence |
| title_sort | angel investments of small family business entrepreneurs cross country evidence |
| topic | Small family business Micro-angel investor Trust Family capital Entrepreneurial ecosystem |
| url | https://doi.org/10.1186/s40854-024-00700-9 |
| work_keys_str_mv | AT vivianafernandez angelinvestmentsofsmallfamilybusinessentrepreneurscrosscountryevidence |