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This paper studies the interaction of Finnish manufacturing firms and a state-owned specialized financing company, whose objective is to cure credit market imperfections. The study ex-amines how the presence of such agency affects the behavior of the firms over time. Specifically, the study analyzes whether the observed persistence in the subsidized financing originates from true state dependence or unobserved firm-specific heterogeneity. The results show that there is positive state dependence in the granted government loans and guarantees. The findings indicate that the private sector agents may adjust their financing behavior in response to the government intervention in the credit markets. The unobserved firm-specific heterogeneity accounts for much of the observed persistence, which provides another reason for why some firms are more dependent on the government funding than the others.

Small business has an uneasy relationship with the banking sector. In some countries, governments have stepped in to create specialist institutions for small business finance. One such institution was created in Australia after World War II. An Industrial Finance Department was created within a restructured Commonwealth Bank to provide specialist financial assistance to small business. This institution, neglected by historians, grew and survived in an evolving political and often hostile environment. The Industrial Finance Department provides further insight into the politics of financial provision and regulation in Australia.

At a time when small businesses are suffering from a credit crunch, 'niche' financial institutions are filling the void left by more traditional sources of financing, such as commercial banks. The authors argue that the most important of these niche players are community-based factor companies, which are rapidly expanding from their client base in apparel and textiles to finance a range of firms in everything from electronics to health care. The purchase of accounts receivable by factors enhances the balance sheets of their clients, making it easier for the clients to obtain bank financing. Also, because factors are more interested in the creditworthiness of a client's customers than of the client itself, they are willing to extend loans in excess of collateral to rapidly growing businesses. Because factors are becoming an increasingly important source of financing for small and start-up businesses, the authors propose that factors be encouraged to play a broader role in financing firms in distressed communities by (1) making some factors eligible for funding and assistance under legislation regulating community development financial institutions and (2) by allowing investments by banks in factors to count toward compliance under the Community Reinvestment Act.

PurposeThis study focuses on the factors affecting equality of access to UK government grant and loan initiatives and the identification of gender differences in the uptake of those initiatives.Design/methodology/approachA qualitative methodology was adopted as quantitative data is already available regarding the sources and levels of financing accessed. In total 32 interviews were conducted with 18 women and 14 men seeking business start‐up capital. A review of the advice and assistance offered by 31 business support agencies to potential and existing male and female business clients across the region also was undertaken.FindingsThe findings revealed that there is a discrepancy in the number of men and women business owners accessing grant and loans schemes. Women do not enter into business ownership with the same amount of capital as men, and women are far more likely to access loans and grants than traditional forms of financing.Research limitations/implicationsThis is a preliminary investigation which needs to be extended and the relationship between service providers and small business owners further explored to provide a greater understanding of the complexities that relationship has on accessing government grants/loans.Practical implicationsThe grant and loan system is highly complex and fraught with difficulties, which appears to exclude women and more specifically those from lower socioeconomic backgrounds, i.e. those they were designed to assist.Originality/valuePrevious research has focused on private sector sources of business finance. This study is the first to look specifically at government grant/loan schemes that are targeted at those business owners who experience discrimination accessing traditional forms of finance.

"Detailed, actionable guidance for expanding your revenue in the face of a new virtual marketWritten by industry authority Charles H. Green, Banker's Guide to New Small Business Finance explains how a financial bust from one perfect storm--the real estate bubble and the liquidity collapse in capital markets--is leading to a boom in the market for innovative lenders that advance funds to small business owners for growth. In the book, Green skillfully reveals how the early lending pioneers capitalized on this emerging market, along with advancements in technology, to reshape small company funding.Through a discussion of the developing field of crowdfunding and the cottage industry that is quickly rising around the ability to sell business equity via the Internet, Banker's Guide to New Small Business Finance covers how small businesses are funded; capital market disruptions; the paradigm shift created by Google, Amazon, and Facebook; private equity in search of ROI; lenders, funders, and places to find money; digital lenders; non-traditional funding; digital capitol brokers; and much more. Covers distinctive ideas that are challenging bank domination of the small lending marketplace Provides insight into how each lender works, as well as their application grid, pricing model, and management outlook Offers suggestions on how to engage or compete with each entity, as well as contact information to call them directly Includes a companion website with online tools and supplemental materials to enhance key concepts discussed in the book If you're a small business financing professional, Banker's Guide to New Small Business Finance gives you authoritative advice on everything you need to adapt and thrive in this rapidly growing business environment"--

A plethora of obstacles frequently confront small business enterprises. Still, many business owners were caught off guard by the unexpected COVID-19 outbreak. This research is a survey of small businesses in the city of Jos, Nigeria. The objective is to determine the financial exposure of small businesses to the COVID-19 epidemic. We obtained primary data from respondents using Likert scale questionnaires. Descriptive analysis was used to address the study questions with the data collected. Our findings showed that liquidity was the worst-hit aspect of business finance. This was closely followed by profitability, while debt management was the least impacted of the three domains. The theoretical argument of the study suggests a pragmatic approach to assessing how external environmental factors affect business entities. The authors recommend that business owners should make concerted efforts to get a financial education.

This in-depth, comparative case study of the creation of the small and medium enterprise credit market in Mexico explores the work of actors to craft new organizational practices, as well as the symbols that sustain institutionalization efforts. The study demonstrates that, to craft new institutional practices, individual actors engage in two distinct layers of institutional work. One entails purposefully visible, staged, scripted, and carefully documented work to suspend existing institutions and allow for experimentation as well as to legitimize new practices. The second entails invisible, undocumented work to recruit allies, find resources, experiment with new practices, coordinate strategies of action, and build political toolkits. While visible work—which is the focus of most research on institutional change—was determinant at every stage of the change process because of its symbolic effects, actors spent most of their time and energy on invisible work, which they referred to as "the real work." The paper shows that every act of visible institutional work was crafted through considerable amounts of invisible institutional work. Since new practices and new symbols were crafted through gradual and iterative processes of experimentation, invisible work includes many failures that remain undocumented. It also includes the work of midlevel, invisible actors who, often, are the real and unreported agents of institutional change. The findings have implications for our understanding of the mechanisms of institutional maintenance and change.