Planning a loan in a small business

2018 ◽  
Vol 35 (2) ◽  
pp. 95-101
Author(s):  
V. Y. Epanchintsev ◽  
K. A. Levchenko
Keyword(s):  
Small Business ◽  
National Economy ◽  
Small Businesses ◽  
Credit Market ◽  
Current Situation ◽  
Small Business Lending

This article focuses on research of small business lending trends. Presented is a description of the current situation of small business in the national economy and the credit market. The problems encountered by enterprises when lending. Developed measures to promote lending to small businesses. 

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.

Cookie Cutter vs. Character: The Micro Structure of Small Business Lending by Large and Small Banks

2004 ◽  
Vol 39 (2) ◽  
pp. 227-251 ◽  
Author(s):  
Rebel A. Cole ◽  
Lawrence G. Goldberg ◽  
Lawrence J. White
Keyword(s):  
Small Business ◽  
Decision Process ◽  
Small Businesses ◽  
Financial Statements ◽  
Micro Structure ◽  
Small Business Lending ◽  
Micro Level ◽  
Small Banks ◽  
Loan Approval ◽  
Interesting Area

AbstractThe informational opacity of small businesses makes them an interesting area for the study of banks' lending practices and procedures. We use data from a survey of small businesses to analyze the micro level differences in the loan approval processes of large and small banks. We provide evidence that large banks ($1 billion or more in assets) employ standard criteria obtained from financial statements in the loan decision process, whereas small banks rely to a greater extent on information about the character of the borrower. These cookie-cutter and character approaches are compatible with the incentives and environments facing large and small banks.

scholarly journals SMALL BUSINESS IN WOODWORKING

2021 ◽  
Vol 11 (1) ◽  
pp. 181-191
Author(s):  
Igor Grigorev ◽  
Ol'ga Kunitskaya ◽  
Andrey Manukovskiy ◽  
Elena Maklakova ◽  
Vladimir Grigor'ev ◽  
...  
Keyword(s):  
Economic Development ◽  
Small Business ◽  
Small Businesses ◽  
Current Situation ◽  
Leningrad Region ◽  
Industrial Enterprises ◽  
Long Time ◽  
Main Production ◽  
Characteristic Features ◽  
Production Areas

The need to support and develop small business, as one of the pillars of the successful economic development of the state, has been talked about, written about, and held at various levels for quite a long time in Russia. A striking example of such a small business is individual entrepreneurs engaged in woodworking. These enterprises have their own characteristic features of work, which consist in the fact that the equipment and tools of the main production, basically, belong to the cheapest segment, quite often they are made independently. Production areas are rented in small premises of large industrial enterprises that are in operation and have ceased production. Manufacturing focuses on a fairly narrow segment of consumers, as well as on the production of non-serial products (for individual orders). Small businesses in woodworking have never brought super-profits due to the rather tough competition. To analyze the current situation, a sample of typical representatives of small business in woodworking located in St. Petersburg and the Leningrad region has been considered

scholarly journals THE ROLE OF SMALL BUSINESS WITHIN THE NATIONAL ECONOMY

2020 ◽  
pp. 157-166
Author(s):  
ZOKIR SODIKOV
Keyword(s):  
Small Business ◽  
National Economy ◽  
Small Businesses ◽  
National Income ◽  
Well Being ◽  
Entrepreneurial Activity ◽  
Productive Capacity ◽  
Private Entrepreneurship ◽  
The Impact

The article considers the impact of small business on the development of the national economy, expansion of production, improving the quality of goods and services, increasing employment, strengthening export potential, and efcient organization of imports. In this regard, the analysis of the conditions created in our country, and the basis of the achieved results were done. Also, future challenges and areas for improvement were identifed. One of the priorities in the development of a modern sociallyoriented market economy in our country is to strengthen small business and private entrepreneurship. Economic reforms are underway and a system has been set up to enhance the role of small business. The legal and regulatory framework guaranteeing entrepreneurial activity and structures to assist entrepreneurs have been formed. Small businesses have the opportunity to create new jobs without large capital and to reduce the shortage of certain goods, or even to provide them in full. Nowadays, it is important to analyze regularly the role of small business, which plays a key role in strengthening the productive capacity of the national economy and improving the welfare of the population, based on the conditions and opportunities of our country and draw perspective conclusions about them. At the same time, to substantiate and further improve the results of the ongoing socioeconomic reforms in society, it is necessary to study the development of small business and private entrepreneurship, as well as all sectors of the national economy. This article is the fulfllment of the tasks aimed at achieving these goals. The development of small and medium-sized businesses in the national economy, support for private and entrepreneurial activities will speed up production and ensure a stable supply of goods to the consumer market. As a result, the employment rate in the country will rise and the existing labor force will be able to create value. This process will increase national income and lead to an increase in per capita income. As a result, the national economy will develop, the well-being of the population will increase, and the socio-economic power and political position of the state at the international level will strengthen.

scholarly journals FEATURES OF SMALL BUSINESS DEVELOPMENT IN THE CIS COUNTRIES: DOES INSTITUTIONAL ENVIRONMENT AFFECT

2014 ◽  
Author(s):  
Nataliia Viktorovna Ostapenko
Keyword(s):  
Small Business ◽  
National Economy ◽  
Small Businesses ◽  
Path Dependence ◽  
Institutional Environment ◽  
National Level ◽  
Geographical Location ◽  
Business Development ◽  
Cultural Development ◽  
Small Business Development

The article analyzes the development of small businesses at the national level through a comparative analysis between the former Soviet countries – Ukraine, Russia, Belarus, Kazakhstan, Uzbekistan, and Kyrgyzstan. These countries are comparable by the previous path dependence (the period of the USSR, communism), by the position of the geographical location, as well as by similarity of cultural development. As can be seen from the analysis, which was conducted in article, the quantitative characteristics of small business development in the above countries are similar, based on the dependence on foreign markets and conditions in national economies. However, qualitative indicators of small business development in these countries are different. These differences can be attributed to the activities of the institutional environment (formal and informal institutions) and its impact on the national economy. Conclusions about the effectiveness of quality of development of small business sector through the analysis of its contribution to the national economy are done.

scholarly journals Impact of Bank Closings on Credit Extension to Businesses in Low-Income and Minority Neighborhoods

2019 ◽  
Vol 47 (1) ◽  
pp. 20-49
Author(s):  
Maude Toussaint-Comeau ◽  
Yi David Wang ◽  
Robin Newberger
Keyword(s):  
Small Business ◽  
Low Income ◽  
Small Businesses ◽  
Bank Failures ◽  
Small Community ◽  
Community Banks ◽  
Small Business Lending ◽  
Local Areas ◽  
New Research ◽  
The Impact

New research is surfacing since the last financial crisis, not only to help predict risks associated with bank failures but also to assess the impact of bank failures on the economy and local geographies. However, although bank failures occurred mostly among small (community) banks, much less is understood regarding how the closing of mission-oriented community banks, or minority-owned banks, affect traditionally underserved markets, areas such failed banks were designed to serve. We conduct an empirical investigation testing the effects of bank closings on local areas. We find that, as a result of bank closings, there are significant frictions with small businesses obtaining credit, which appear to be potent enough to cause cumulative declines in aggregate small business lending in neighborhoods, lasting up to 3 years. We also find evidence that such lending shocks have repercussions on small business growth. We find that the closing of large banks also has an impact on small business lending, consistent with previous research, which has shown that as small businesses lose credit from large banks, they are not able to switch easily to other banks, leading to a decline in aggregate lending in local areas. We find this to be true for low- or moderate-income (LMI) and minority businesses/neighborhoods. We also find that the failure of community development financial institutions (CDFIs) and minority depository institutions (MDIs) leaves a credit void that may not automatically be filled in LMI and minority neighborhoods.

scholarly journals PROBLEMS OF DEVELOPMENT OF SMALL BUSINESSES LENDING IN RUSSIAN FEDERATION

2021 ◽  
pp. 67-79
Author(s):  
Olga Sivash
Keyword(s):  
Small Business ◽  
Russian Federation ◽  
Small Businesses ◽  
Banking System ◽  
Marketing Research ◽  
Corporate Identity ◽  
Point Of View ◽  
Information Support ◽  
Small Business Lending ◽  
The Russian Federation

The development of small business in the Russian Federation is a very important urgent problem, as it will make it possible to solve many important social programs in the country. However, in terms of the scale of development of this sector, Russia lags far behind the leading foreign countries. In the Russian Federation, since 2015, there has been a negative trend in the volume of lending to SMEs. Only in 2018, the volume of loans to SMEs stabilized, and at the beginning of 2019, an increase in the volume of the loan portfolio of SMEs by 1 % is already noted. In modern economic conditions, the main source of financial resources for small businesses, from the point of view of their availability and opportunities for obtaining, is lending. The article examines the development trends of lending to such an important segment of economic activity as small business. Supporting small businesses in the Russian Federation is one of the priority tasks of the country’s socio-economic development. In all regions of the country, a network of government agencies has been created that provide information support to existing and emerging entrepreneurs (Entrepreneurship Support Centers based on the My Business platform), many seminars and forums dedicated to the development of entrepreneurship are held. Within the framework of this interaction, entrepreneurs can receive free of charge not only consulting services, but also assistance in developing a business plan, creating a corporate identity, developing and modernizing websites, conducting marketing research, and drawing up statutory documents. The activities within the framework of state support for small businesses in accordance with the State Program are highlighted and the importance of effective implementation of these activities for the development of small business lending is analyzed. The problems of lending to small businesses in the Russian Federation, obstacles that arise both from banks when they either cannot offer attractive lending programs, or refuse borrowers to provide a loan, and from entrepreneurs who refuse such a source of financing for small businesses, are considered. like lending. Measures are proposed to create favorable conditions for lending to small businesses, which are focused on supporting specific borrowers and those that are focused on supporting commercial banks and the banking system as a whole. The strategic guidelines of a commercial bank for the development of small business lending have been determined.

scholarly journals Have Stress Tests Impacted Small-Business Lending?

2019 ◽  
pp. 1-6
Author(s):  
Yuliya Demyanyk
Keyword(s):  
Small Business ◽  
Federal Reserve ◽  
Small Businesses ◽  
Banking System ◽  
Economic Conditions ◽  
Bank Holding Companies ◽  
Stress Tests ◽  
Small Business Lending ◽  
Holding Companies ◽  
The Impact

The Federal Reserve conducts stress tests of the largest bank holding companies to ensure that the banking system has sufficient capital to stay financially sound in the event of worsening economic conditions. Some groups have raised concerns that the stress tests will reduce lending to small businesses. This article describes recent research investigating the impact of the stress tests on small-business lending. It finds that the banks that are most affected by stress tests have reduced their small-business credit, but aggregate credit to small businesses has not fallen.

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