The impact of government-supported participative loans on the growth of entrepreneurial ventures

We study the employment and sales growth of entrepreneurial ventures that have received a government-sponsored participative loan (PL), a hybrid form of financing between debt and equity. We use propensity-score matching (PSM) and instrumental variable analysis (2SLS) to study a sample of 512 entrepreneurial ventures that received a PL from a Spanish government agency between 2005 and 2011. We find evidence that PLs significantly boosted their...