Solving the SME finance puzzle: an examination of demand and supply failure in the UK

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Owen, Robyn, Botelho, Tiago, Hussain, Javed and Anwar, Osman (2023) Solving the SME finance puzzle: an examination of demand and supply failure in the UK. Venture Capital, 25 (1). pp. 31-63. ISSN 1369-1066

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Abstract

Following economic instability after the Global Financial Crisis, the financing of small and medium-sized enterprise (SME) growth and productivity has become central to UK government policy for sustainable economic development, evidenced by the establishment of the British Business Bank and Regional Investment Funds. This paper considers demand-side and supply-side failures in the contemporary UK SME finance market. Adopting mixed methods, binary logit regression analysis of the 2015 UK Small Business Survey of 15,502 SMEs is sense-checked using qualitative participatory findings from 6 SME finance support advisors. Findings confirm the importance of SME size, age, management capability and use of appropriate, timely external advice. They support the resource-based view of SME access to finance, contributing to borrower discouragement and under investment, suggesting the need for improved support to upskill entrepreneurs’ financial management and investment readiness and the concept of an ‘holistic entrepreneurial finance ecosystem’ approach to assist UK SME finance.

Item Type:	Article
Uncontrolled Keywords:	smes,entrepreneurial finance,finance escalator,ecosystem,demand,supply,policy,sdg 8 - decent work and economic growth ,/dk/atira/pure/sustainabledevelopmentgoals/decent_work_and_economic_growth
Faculty \ School:	Faculty of Social Sciences > Norwich Business School
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Strategy and Entrepreneurship
Depositing User:	LivePure Connector
Date Deposited:	27 Oct 2022 09:30
Last Modified:	16 Dec 2022 10:31
URI:	https://ueaeprints.uea.ac.uk/id/eprint/89386
DOI:	10.1080/13691066.2022.2135468

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