"We are likely to see more smaller companies coming into the market, while there will also be more external financing and there are significant opportunities for local community schemes," she says.
Because they are living in what colleagues at the Overseas Development Institute have termed an age of choice, in which many more external financing options are available to them, both private and public, to complement a vast expansion in domestic resource revenue in many countries.
The results show that, consistently with financial frictions being important, industries that are more dependent on external finance decline significantly more during a sudden stop, especially in less financially developed countries.
Although Hong Kong, Malaysia, Singapore and India are also subject to this risk, their relatively more positive external financing positions will mitigate any downside impact on their currencies," the report's authors said, noting that in Latin America, Brazil could be affected the most by lower investment from the UK.
But while 35% said they were more likely to use external finance than they were two years ago 65% disagreed.
Following the rise in labor migrants, remittances -- periodic small foreign currency transfers from economically advanced host to weaker home economies--are gaining traction as "a more stable source of external finance" (WB Global Weekly, Feb 20 , 2015 for developing countries.
As ODA currently makes up more than two-thirds of external finance for the least-developed countries (LDCs), donor countries have long been keen to use ODA as a lever to generate private investment and domestic tax revenues.
The authors speculate that the reason could be that younger founders are "more in need of early-stage external finance" because older founders have the connections, networks and personal wealth to fund their ventures.
"Bootstrapping" Accessing external finance is likely to become more difficult in the current economic climate.
In the 13 recessions caused by financial crises, the industries most dependent on external finance grew 0.8 percentage points more slowly, on average, than those least dependent.
