Global Supply and Demand of Entrepreneurial Finance: A Random Utility Theory Perspective
Summary
This paper, published in Journal of Open Innovation: Technology, Market, and Complexity, provides an empirical analysis of the global supply and demand of entrepreneurial finance using a Random Utility Theory (RUT) perspective. The study connects neo-classical economic theory with revealed market preference data to model the discrete choices of both entrepreneurs seeking capital and financiers supplying it.
Drawing on multi-country enterprise survey data, the paper estimates bilateral models of supply and demand for entrepreneurial capital — examining how firm characteristics, institutional quality, financial market development, and digital infrastructure shape access to and provision of entrepreneurial finance across different economic settings.
Key findings highlight the role of financial inclusion and digital infrastructure as demand-side catalysts, while regulatory quality and macroeconomic stability emerge as the dominant supply-side determinants of entrepreneurial capital flows in both advanced and emerging economies.
Citation
Niankara, I. (2022). Empirical Analysis of the Global Supply and Demand of Entrepreneurial Finance: A Random Utility Theory Perspective. Journal of Open Innovation: Technology, Market, and Complexity, 8(1), 26. doi:10.3390/joitmc8010026