SMEs Financing: the Extent of Need and the Responses of Different Credit Structures
Small and medium enterprises (SMEs) have a key role in developing national economies, but are often limited by lack of development support in financing business for reasons of information asymmetry, high risks, lack of collateral, unfavorable regulatory environment. The statistics show managers give...
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2010-07-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/481.pdf
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| Summary: | Small and medium enterprises (SMEs) have a key role in
developing national economies, but are often limited by lack of
development support in financing business for reasons of information
asymmetry, high risks, lack of collateral, unfavorable regulatory
environment. The statistics show managers given constant importance of
SMEs financing opportunities, bank credit pre-eminence over other forms
of financing, the lack of viable alternatives for start-up and innovative
companies, etc. Market concentration, alternative between transactional
or relational lending, various types of banks; state owned, private owned,
foreign, large or small, are analyzed to identify the availability for SME
financing. Finally, it is recognized the importance of a diversified
banking markets both in terms of supply, lending technologies, but also
as bank institutions itself. |
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| ISSN: | 1841-8678 1844-0029 |