@article{Entrepreneurship:944,
      recid = {944},
      author = {Secrieru, Oana and Vigneault, Marianne},
      title = {Public Venture Capital and Entrepreneurship},
      publisher = {Bank of Canada},
      address = {2004},
      pages = {1 online resource (v, 32 pages)},
      abstract = {Entrepreneurship is a key factor in promoting growth in  output and employment. Consequently, to encourage new  start-ups, most governments in developed countries have  public venture capital programs. The authors develop a  model that endogenously determines the number of  entrepreneurs and the optimal quantity of financing and  managerial advice provided by a public venture capital  program. Their analysis is based on a model of occupational  choice that has informational asymmetries regarding the  ability of entrepreneurs. The authors identify  circumstances under which over- or underinvestment can  occur. They also show that the equilibrium is characterized  by an inefficient number (too many or too few) of less-able  entrepreneurs. Furthermore, the authors find that the  government faces disincentives in providing small amounts  of managerial advice; larger amounts of such advice may be  optimal.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/944},
      doi = {https://doi.org/10.34989/swp-2004-10},
}