The results show that financial constraints greatly limit the ability to start a business. The wealth shock — in this case the lottery win — proved to be significant, as 0.5 percent of incorporations in 2002-2016 were filed by lottery winners within two years of winning. This is consistent with the authors’ hypothesis that the winner had a viable business idea but lacked the capital to start.
Overall, entrepreneurial businesses increased with lottery wins, but unincorporated or self-employed businesses did not change, therefore indicating that entrepreneurs face greater financial constraints and policy should focus on alleviating said constraints in order to create the entrepreneurial culture necessary for a technology-based economy.