Skip to main content

Funding self-employment – the role of consumer credit

Buy Article:

$55.00 plus tax (Refund Policy)

This article investigates whether self-employed households use consumer loans – in particular, instalment loans and overdrafts – to finance business activities. Controlling for financial and nonfinancial household variables, we show that self-employed households particularly use personal overdrafts significantly more often than employee households. When analysing the correlation between consumer loan take-ups and consumption of self-employed in comparison to employee households, we find first evidence that overdrafts are used by self-employed to finance their business as well. This indicates that intermingling constitutes a financing strategy when regular business loans might not be accessible.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Data/Media
No Metrics

Keywords: D12; D14; G32; consumer credit; financial intermingling; household business interface; small business finance

Document Type: Research Article

Affiliations: 1: The World Bank, CGAP, 3rd Floor, 900 19th StreetWashington,DC 20005, USA 2: Gesellschaft für Arbeitsmarktaktivierung, Kufsteinerstr. 7,Berlin 10825, Germany

Publication date: 2013-05-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more