Cash for entrepreneurs 'may be misplaced'

May 21, 1999

* Banks are often blamed for not making enough money available for potential entrepreneurs, but new research suggests that, if anything, they overlend to the start-up sector. David de Meza, professor of economics and management at the London School of Economics and Exeter University, believes the findings indicate that government policies aimed at encouraging the launch of more entrepreneurial small businesses, including university spin-offs, "may be misplaced". "High-quality entrepreneurs are cross-subsidising low-quality ones," said Professor de Meza.

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