scholarly journals The relative importance of regional institutions and external finance for small business investment: evidence from Vietnam

2020 ◽  
Vol 16 (6) ◽  
pp. 911-929
Author(s):  
Bach Nguyen
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Relative Importance ◽  
Local Institutions ◽  
Firm Investment ◽  
Business Investment ◽  
External Finance ◽  
Institutional Settings ◽  
Heterogeneous Effects ◽  
Conventional Models

AbstractThis study examines the relative importance of local institutions and external finance on small business investment. Utilising the institutional theory, we argue that local institutions and external finance have heterogeneous effects on firm investment. More importantly, they may interact and moderate each other. Analysing a set of 1.3 million observations of small businesses operating in Vietnam (2006–2016) obtained from the Annual Enterprise Survey data from the Vietnam Statistics Office, we find that local institutional settings and external finance are important determinants of firm investment. Moreover, local institutions are able to moderate the effects of external finance on firm investment. As such, this study asserts that conventional models cannot discern whether institutions or external finance are more important to firm investment. Rather, the relative importance of institutions and external finance should be investigated from the perspective of their interaction.

COVID-19 Lockdown Restrictions and Small Business Survival Strategy: Government Supporting Schemes

2021 ◽  
pp. 227853372110451
Author(s):  
Minyahil Assefa
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Survival Strategy ◽  
Relative Importance ◽  
Logit Models ◽  
Business Survival ◽  
Binary Logit ◽  
The Government ◽  
Tax Payments ◽  
The Impact

From antiquity to the present day, the contribution of small businesses to the economic development of a country is overwhelming. Nowadays, COVID-19 lockdown restrictions have exerted an outrageous impact on small businesses survival. In developing countries where government-supporting capacity is low, the severity is substantial. The present study predicts the impact of COVID-19 lockdown restriction and government supporting schemes on small business survival. To meet this purpose, the study primarily used PLS-SEM and binary logit models. The results confirmed that over 44% of small businesses would fail in the first month of lockdown restriction. Moreover, only 6% have cash reserve to survive twelve months. In this regard, the present study suggested that the government should have to abstain from total lockdown measures, without government-supporting schemes. As such, the study has examined the relative importance of COVID-19 based special loan, suspension of payments, withdrawal of restricted funds, and exemption of tax and penalty payments. Among these supporting schemes, COVID-19 based special loan is the most important government-supporting scheme followed by the suspension of interest and principal payments. However, the exemption of tax payments and withdrawal of restricted funds were not significant.

Determinants of Unsuccessful Risk Capital Funding by Small Business

1979 ◽  
Vol 4 (1) ◽  
pp. 31-37 ◽  
Author(s):  
James M. Johnson
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Investment Behavior ◽  
Risk Capital ◽  
Business Investment ◽  
Investment Companies ◽  
Capital Funding ◽  
Potential Sources ◽  
Venture Capital Firms

Although Small Business Investment Corporations (SBIC's) and venture Capital Firms (VC's) represent potential sources of long-term financing for small businesses, little is known about their investment behavior. The purpose of this article is to examine the major reasons why entrepreneurs are denied financing by these investment companies. By examining the funding rejection determinants of other businesses, the entrepreneur may better appraise his or her firm's chances for successful financing and evaluate how the business might be changed to improve funding possibilities.

Entrepreneurs' Contributions to Small Business

2015 ◽  
pp. 168-198
Author(s):  
M. Gordon Hunter
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Success Factors ◽  
Business Owners ◽  
Business Success ◽  
Success Factor ◽  
Small Business Owners ◽  
Relative Importance ◽  
Small Business Success ◽  
The One

This chapter compares success factors and failure factors of small businesses. In an attempt to determine the relative importance of these factors, the two sets are compared. Thus, each failure factor is related to a corresponding success factor. A discussion of the aspects related to small business success and failure sets the context for the comparison. The relatively more important success factor involves aspects related to administration. Unfortunately, this is the one aspect that most small business owners/managers either lack the skills to perform or the time to allocate to this function. Within the administration, function leadership emerged as a relatively important skill contributing to small business success.

Assessment of small businesses activities in Ukraine

2019 ◽  
pp. 40-47
Author(s):  
Igor Ponomarenko ◽  
Kateryna Volovnenko
Keyword(s):  
Comparative Analysis ◽  
Statistical Analysis ◽  
Small Business ◽  
Small Businesses ◽  
Government Agencies ◽  
Small Enterprises ◽  
The Subject ◽  
Business Entities ◽  
The Impact ◽  
Micro Enterprises

The subject of the research is a set of approaches to the statistical analysis ofthe activities of small business entities in Ukraine, including micro-enterprises. The purpose of writing this article is to study of the features of functioningof small business entities in Ukraine. Methodology. The research methodology isto use a system-structural and comparative analysis (to study the change in thenumber of small enterprises by major components); monographic (when studyingmethods of statistical analysis of small businesses); economic analysis (when assessing the impact of small business entities on socio-economic phenomena andprocesses in Ukraine). The scientific novelty consists to determine the features ofthe functioning of small businesses in Ukraine in modern conditions. The influenceof the activities of the main socio-economic and political indicators on the activities of small enterprises in recent periods of time has been identified. It has beenestablished that there is flexibility in the development of strategies by small businesses in conditions of significant competition, which makes it possible to quicklyrespond to changing situations in specific markets. Conclusions. The use of acomprehensive statistical analysis of small businesses functioning in Ukraine willallow government agencies to develop a set of measures to optimize the activitiesof these enterprises, which ultimately will positively affect the strengthening oftheir competitiveness and will contribute to the growth of the national economicsystem.

scholarly journals Effects of Regional Bank Merger on Small Business Borrowing: Evidence from Japan

2015 ◽  
Vol 7 (11) ◽  
pp. 62
Author(s):  
Hironobu Miyazaki ◽  
Hiroyuki Aman
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Economies Of Scale ◽  
Loan Portfolio ◽  
Small Business Lending ◽  
Borrowing Costs ◽  
Bank Merger ◽  
Regional Bank ◽  
Small Business Loans ◽  
The Impact

This study examines the impact of a regional bank merger in Japan on borrowing by small businesses, focusing on firms that borrow from the acquiring bank, the acquired bank, or both. First, we find that post-merger borrowing costs declined. This result suggests that small borrowers enjoy more favorable post-merger financing conditions because efficiencies from economies of scale lead to lower costs. Second, we<strong> </strong>find that post-merger borrowing costs decline for firms that borrow only from the acquiring or acquired bank, whereas they did not decline for firms that borrow from both. Third, we find that only small business loans to firms that borrow from both the acquiring and acquired banks decrease post-merger. This result suggests that small business lending might decline because of a merged bank’s loan portfolio and lending strategy.

The Role of SBA Loans in Small Business Survival after Disaster Events

2021 ◽  
pp. 0739456X2110282
Author(s):  
Maria Watson
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Conditional Logistic Regression ◽  
Small Business Administration ◽  
Confounding Factors ◽  
Term Survival ◽  
Business Survival ◽  
Quasi Experimental

Local businesses are important for recovering communities, yet program analyses of the effectiveness of Federal disaster loans—particularly for businesses—are limited and contradictory. This study looks at the role U.S. Small Business Administration (SBA) Disaster Loans played in the long-term survival of small businesses in Galveston County, Texas after the 2008 Hurricane Ike. This research uses quasi-experimental design, matching methods, and conditional logistic regression to tease out the effect of the loan from potential confounding factors. The results show that businesses that received a disaster loan were significantly more likely to survive than their controls, and businesses that moved were also more likely to survive.

Measuring Success in Family Businesses: The Concept of Configurational Fit

2006 ◽  
Vol 19 (2) ◽  
pp. 115-134 ◽  
Author(s):  
Christoph Hienerth ◽  
Alexander Kessler
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Business Owners ◽  
Border Region ◽  
Small Business Owners ◽  
Comparable Data ◽  
Measurement Instruments ◽  
Success Measurement ◽  
Success Evaluation ◽  
As Effects

The problems associated with measuring success in small businesses are primarily caused by a lack of comparable data due to the ambiguity of “success” and by subjective biases. Success evaluation is dominated by the estimates of business owners, who tend to overestimate overall success and internal strengths. However, reliable success measurement instruments would be useful for small business owners/managers as well as small business policymakers. The main purposes of this article are to compare various measures of success, to explore the differences in their outcomes, and to analyze whether a model of success measurement using configurational fit can be used to overcome subjective biases. The study is based on a recent survey of 103 small family-owned businesses in the eastern Austrian border region. Our analysis of the data confirmed the existence of the measurement problems mentioned above. Although some individual indicators show significant biases as well as effects due to company age, size, and industry, the aggregated indicator based on the concept of configurational fit seems to be an appropriate means of overcoming most of these drawbacks.

FEATURES OF THE RUSSIAN SMALL BUSINESS MODEL AND THE CONSEQUENCES OF THE COVID-19 PANDEMIC

2021 ◽  
pp. 71-85
Author(s):  
Natal’ya E. Egorova ◽  
Keyword(s):  
Small Business ◽  
Business Model ◽  
Small Businesses ◽  
Structural Characteristics ◽  
Bank Lending ◽  
Structural Instability ◽  
Government Support ◽  
Negative Consequences ◽  
Development Levels ◽  
The Impact

The article analyzes the quantitative and structural stability of Russian small business and identifies the model features of its functioning. It investigates the dynamics of development of Russian small business is investigated and notes a downward trend in the number of small and medium-sized enterprises over the past two years. A conclusion is drawn that the quantitative indicators reflecting its functioning are highly sensitive to the negative effects of the macroeconomic environment. The author introduces a concept of the small business heterogeneity and brings up its structural characteristics, represented by various categories of small and medium-sized firms. Comparative analysis of the Russian small business model with foreign small business confirms its quantitative and structural instability. That makes the considered sector of the national economy vulnerable to shocks (externalities), including the COVID-19 pandemic. It is assumed that the negative consequences of the pandemic will affect Russian small businesses more than foreign ones, and the gap in their development levels will widen. An assessment of the impact of the COVID-19 pandemic on Russian small business and a forecast of its development are made in the context of limited government support and the absence of active bank lending.

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