Entrepreneurship and Financial Constraints in Thailand

Townsend, Robert M. and Anna L. Paulson. Journal of Corporate Finance 10 (2004): 229-262.

 Townsend and Paulson use new data from rural and semi-urban Thailand to examine how financial constraints affect entrepreneurial activity. The analysis uses nonparametric and reduce form techniques. Results indicate that financial constraints play an important role in shaping the patterns of entrepreneurship in Thailand. In particular, wealthier households are more likely to start businesses, more likely to make larger investments in their businesses, and face fewer constraints.