Research Handbook on Entrepreneurial Finance
Show Less

Research Handbook on Entrepreneurial Finance

Edited by Javed Ghulam Hussain and Jonathan M. Scott

Drawing upon current cutting-edge theories, knowledge and research findings, this Handbook provides an analysis of the interaction between small and medium-sized enterprises (SMEs), entrepreneurs and financial institutions globally. The contributors consider regional and international perspectives within and between Europe, North America, New Zealand, the Middle East, as well as South, Central and East Asia on a chapter-by-chapter basis. In so doing, they provide a contextualized, up-to-date snapshot of research into entrepreneurial finance across the world.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 8: The role of UK government hybrid venture capital funds in addressing the finance gap facing innovative SMEs in the post-2007 financial crisis era

Robert Baldock and David North


This chapter examines how the United Kingdom (UK) government has addressed the equity finance gap since the onset of the recent financial crisis. Drawing on Lerner’s (2010) ‘guiding principles’ for public intervention in the venture capital (VC) market it explores the notion that an equity finance gap may be holding back the growth of innovative small and medium-sized enterprises (SMEs). Using recent demand-side and supply-side research evidence alongside existing literature, the chapter focuses on the following five principles and lessons: (i) government has a justified, catalytic role in addressing the equity finance gap to stimulate research & development (R & D) investment; (ii) the management of funds should be private sector led and governments should resist the temptation to over-engineer; (iii) funds need to recognize the long lead times and investment horizons for sensible exit timescales, sustainability and encouragement for future private VC activity; (iv) government VC funds require the size, scale and flexibility to provide follow-on funding and achieve optimal outcomes for funds and their portfolio businesses; and (v) a global perspective encourages inward investment and foreign VC collaborations opening up overseas markets.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.