TY - JOUR
AU - Brown, Ross
AU - Rocha, Augusto
AU - Cowling, Marc
PY - 2020
DA - August
TI - Financing entrepreneurship in times of crisis: exploring the impact of Covid-19 on the market for entrepreneurial finance in the UK
JO - International Small Business Journal
EP - 390
VL - 38
IS - 5
DO - https://doi.org/10.1177/0266242620937464
AB - 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.
PB - SAGE Publications
UR - http://hdl.handle.net/10023/20200
KW - Coronavirus (COVID-19)
ER