Funding self-employment - the role of consumer credit
- 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.
| Author details: | Christoph Kneiding, Alexander KritikosORCiDGND |
|---|---|
| DOI: | https://doi.org/10.1080/00036846.2011.637895 |
| ISSN: | 0003-6846 |
| Title of parent work (English): | Applied economics |
| Publisher: | Routledge, Taylor & Francis Group |
| Place of publishing: | Abingdon |
| Publication type: | Article |
| Language: | English |
| Year of first publication: | 2013 |
| Publication year: | 2013 |
| Release date: | 2017/03/26 |
| Tag: | consumer credit; financial intermingling; household business interface; small business finance |
| Volume: | 45 |
| Issue: | 13 |
| Number of pages: | 9 |
| First page: | 1741 |
| Last Page: | 1749 |
| Organizational units: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften |
| Peer review: | Referiert |
