Additional Evidence on the Use of Trade Credit by Small Firms: The Role of Trade Credit Discounts

2000 ◽  
Author(s):  
Morris G. Danielson ◽  
Jonathan A. Scott
Keyword(s):  
Small Firms ◽  
Trade Credit

scholarly journals BANK CREDIT AND TRADE CREDIT AFTER THE FINANCIAL CRISIS: EVIDENCE FROM RURAL GALICIA

2021 ◽  
Vol 22 (3) ◽  
pp. 616-635
Author(s):  
David Peón ◽  
Xulia Guntín
Keyword(s):  
Financial Crisis ◽  
Rural Areas ◽  
Small Firms ◽  
Trade Credit ◽  
Bank Credit ◽  
Strong Impact ◽  
External Finance ◽  
Survival And Growth ◽  
The Impact

Access to external finance is a key challenge for the creation, survival and growth of SMEs. This article delves into the “weak funding” handicap of rural small firms (SEs): the access to bank financing and the substitutive role of trade credit for entrepreneurs in rural areas when they faced bank credit constraints. Considering SEs in Galicia (Spain), a paradigmatic case in Europe of rural areas in demographic decline with a strong impact of the Spanish sovereign and banking crisis of 2008–2012. There’s evidence of firms in rural areas facing a differential negative flow of bank credit during the financial crisis, especially in the manufacturing and construction sectors, that dissipated afterwards. Then, using a panel data approach that considers the determinants of trade credit, the complementary and substitutive hypotheses are tested to estimate the impact of bank credit restrictions over trade credit.

Market dynamics in the Netherlands: Competition policy and the role of small firms

2001 ◽  
Vol 19 (5) ◽  
pp. 795-821 ◽  
Author(s):  
David B. Audretsch ◽  
George van Leeuwen ◽  
Bert Menkveld ◽  
Roy Thurik
Keyword(s):  
The Netherlands ◽  
Competition Policy ◽  
Small Firms ◽  
Market Dynamics

Dimensione e concentrazione dei gruppi bancari italiani nell'ultimo decennio

2009 ◽  
pp. 21-39
Author(s):  
Vittoria Cerasi ◽  
Lisa Crosato
Keyword(s):  
Mergers And Acquisitions ◽  
Size Distribution ◽  
Small Firms ◽  
Credit Rationing ◽  
Substitution Effect ◽  
Jel Classification ◽  
Steady Increase ◽  
Credit Supply ◽  
Market Shares

- The paper analyzes the change in the size distribution of Italian banking groups over the period 1999 to 2007 following a wave of M&As among large banks. Had this process increased the degree of concentration we would have expected greater credit rationing for small firms, given the central role of Italian banks in financing small firms. We measure this change through widely used measures of concentration on branches. First, we observe a steady increase in concentration that can be captured only by looking at the overall size distribution. Other measures do not perceive this change until the year 2007, when the very large banks merged. Second, by focusing on the banking groups that have been active players in M&As we do see a decline in concentration, since smaller players have caught up with the larger ones in terms of rate of size increase. This contrasts with the role of the new entries and the disappearance of banks following mergers, that has increased the dispersion of market shares. The implications are that: i) there is a credit termination risk due to the rise in active players' size, but ii) credit rationing may not occur due to a substitution effect in credit supply from new entries. Keywords: bank market structure; size distribution of banks; measures of concentration; credit rationing of SME; mergers and acquisitions Parole chiave: struttura dell'industria bancaria; distribuzione per dimensione delle banche; misure della concentrazione; razionamento del credito alle PMI; fusioni e acquisizioni Jel Classification: G21 - L11

Confronting the unprecedented: micro and small businesses in the age of coronavirus disease 2019

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alessandro Bressan ◽  
Abel Duarte Alonso ◽  
Seng Kiat Kok
Keyword(s):  
Small Businesses ◽  
Design Methodology ◽  
Small Firms ◽  
Theory Of Planned Behaviour ◽  
Theoretical Framework ◽  
Wine Industry ◽  
Online Questionnaire ◽  
Content Type ◽  
Key Stakeholders

PurposeThe purpose of this study is to understand how micro and small firms are navigating through the coronavirus disease 2019 (COVID-19) threat, and the alternatives they are implementing to coexist with the ongoing crisis. To this end, Italy's socioeconomically and traditionally significant wine industry is examined. The study considers insights of the theory of planned behaviour (TPB) and develops a theoretical framework, which proposes various emerging theoretical dimensions, including proactiveness, support-reliance and resourcefulness.Design/methodology/approachWinery owners–managers were contacted and invited to partake in the study completing an online questionnaire. Overall, 167 useable responses were collected.FindingsWhile facing the loss of vital income through decreasing demand and exports, participants resort to exploiting various initiatives, including “reinventing” their firms. Their observations also recognise the vital supporting role of various key stakeholders, first and foremost family members, as well as clients and staff. Concerning how owners-managers envision managing their firm post-COVID-19, two predominant groups are identified, one strongly favouring modern-day alternatives, and the second committing to the firm's traditional business model. Overall, the different predictors of the TPB, namely attitude, subjective norms and perceived behavioural control emerged.Originality/valueThis study is one of the first that empirically analyses micro and small firms in a socioeconomically and traditionally significant industry during an unprecedented event. In addition, the proposed theoretical framework provides a roadmap and guide to examine, understand and assimilate the entrepreneurial journey through a devastating event.

Role of Entrepreneurship in Networked Indian Economy

2015 ◽  
pp. 36-59 ◽  
Author(s):  
Neeta Baporikar
Keyword(s):  
Urban Areas ◽  
Small Firms ◽  
Knowledge Networks ◽  
Entrepreneurial Activity ◽  
Competitive Environment ◽  
Network Operator ◽  
Indian Economy ◽  
Networked Economy ◽  
The City

Historically, all societies may have a constant supply of entrepreneurial activity, but that activity is distributed unevenly. Urban areas are favourable for innovative entrepreneurship, as a result of economies of density and the opportunities created by the city as a nucleus of a broader network. Thus, a modem entrepreneur tends to become increasingly a network operator and manager. The purpose of this chapter is to contribute to our understanding on entrepreneurship in networked economy of India; thereto the literature is summarized from the perspective of geographical seedbed conditions and network constellations. It focuses on the role played by small firms and entrepreneurship. The constraints are identified, and the areas that need action are highlighted. It is also suggested that in the age of liberalization and globalization, any attempt at creation of a competitive environment in the country would need to explicitly note the emerging global production and knowledge networks.

Management's Contribution to Internet Commerce Benefit - Experiences of Online Small Businesses

2011 ◽  
pp. 277-296 ◽  
Author(s):  
Simpson Poon
Keyword(s):  
Small Businesses ◽  
Small Firms ◽  
Management Support ◽  
Internet Commerce ◽  
Is Success ◽  
Depth Study ◽  
Specialist Knowledge ◽  
It Success ◽  
Management Involvement

The importance of management and Information Technology (IT) success had been repeatedly identified in small business IT studies (for example, DeLone, 1988). When measuring information satisfaction among small firms, top management involvement was found to be one of the most important factors (Montazemi, 1988). The quest for the role of management involvement in Information Systems (IS) success in small firms continued into the 1990s. For example, Yap, Soh, and Raman (1992) studied a group of Singaporean small firms using earlier findings and discovered that CEO involvement was positively related to IS success. CEO involvement such as attending project meetings, involvement in information requirement needs analysis, reviewing consultants’ recommendations and project monitoring are important to IS success. Thong, Yap and Raman (1996) pointed out that although management support was important, in cases where internal IS expertise was lacking, specialist knowledge (for example, engaging IT consultants in projects) was important to success. An in-depth study on motivators and inhibitors for small firms to adopt computing identified managerial enthusiasm as a key motivator (Cragg, 1998). The overseeing role of management during system implementation was found to be important to success. Management support was also found to be an important factor for IT success in the case of personal computing acceptance (Igbaria, Zinatelli, Craig, & Cavaye, 1997). All of these studies suggested that management involvement was critical to IS success regardless of cultural background.

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