Business advice and lending in small firms

Rostamkalaei, Anoosheh and Freel, Mark Stephen (2017) Business advice and lending in small firms. Environment and Planning C: Government and Policy, 35 (3). pp. 537-555. ISSN 0263-774X

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The literature on lending to small firms has primarily focused on the mechanisms and methods used to evaluate entrepreneurs and businesses and on the types of firms that are more likely to experience unfavourable application outcomes. That is, the focus of most empirical research is on supply-side decisions. The current research attempts to shed some light on demand-side considerations. Drawing upon data collected as the UK SME Finance Monitor (2011–2014), we identify links between entrepreneurs' diligence, business risk and finance-related advice-seeking prior to initiating loan and overdraft applications. The results show evidence of the usefulness of advice in ameliorating, both structural and strategic, business risk and improving the prospects of successful debt applications to banks.

Item Type:
Journal Article
Journal or Publication Title:
Environment and Planning C: Government and Policy
Additional Information:
The final, definitive version of this article has been published in the Journal, Environment and Planning C, 35 (3), 2017, © SAGE Publications Ltd, 2017 by SAGE Publications Ltd at the Environment and Planning C page: on SAGE Journals Online:
Uncontrolled Keywords:
?? small and medium sized firmsbusiness advicebusiness riskeffect of advicepublic administrationmanagement, monitoring, policy and lawenvironmental science (miscellaneous)geography, planning and development ??
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Deposited On:
27 Oct 2016 12:38
Last Modified:
07 Jun 2024 01:04