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The role of 'business angels' in developing small firms in Hungary with growth potential

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Makra Z., Kosztopulosz A.
Kozgazdasagi Szemle (Economic Review)
|
2004
|
vol. 51
|
issue 7/8
717-739
EN
The study presents a relatively little-known form of funding for small firms in Hungary. 'Business angels' are institutional venture capitalists who obtain a stake in unquoted companies with growth potential and often participate in developing them as well. A questionnaire survey was used to prove the existence of a rudimentary informal venture-capital market in Hungary. The findings point to a limited spread of business-angel activity in the country. Arguments are advanced for the importance of this type of investment and proposals made for developing the market for it.
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