The Financial Conditions for Swedish SMEs: Survey and Research Agenda

The Financial Conditions for Swedish SMEs: Survey and Research Agenda This paper shows that in two important sectors of Swedish industry in the early 1990s the existence of finance demand (internally generated) constraints in addition to the familiar finance supply (externally generated) constraints on businesses are a significant empirical phenomenon. Firms are aware that relinquishing some control would improve performance. However, the returns in growth, profits and survival are not sufficient to offset the utility of control loss. Owners of younger firms, especially in Business Services, regard very favourably the added expertise of new (preferably angel) equity holders, with one in three such firms having actively sought new owners. Equity finance is therefore to be regarded as a ‘package’ from the viewpoint of the smaller firm, with transfer of management skills from venture capitalist to firm sweetening the bitter pill of control-loss. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

The Financial Conditions for Swedish SMEs: Survey and Research Agenda

Loading next page...
 
/lp/springer_journal/the-financial-conditions-for-swedish-smes-survey-and-research-agenda-10orMfbWhx
Publisher
Springer Journals
Copyright
Copyright © 1997 by Kluwer Academic Publishers
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1023/A:1007975924164
Publisher site
See Article on Publisher Site

Abstract

This paper shows that in two important sectors of Swedish industry in the early 1990s the existence of finance demand (internally generated) constraints in addition to the familiar finance supply (externally generated) constraints on businesses are a significant empirical phenomenon. Firms are aware that relinquishing some control would improve performance. However, the returns in growth, profits and survival are not sufficient to offset the utility of control loss. Owners of younger firms, especially in Business Services, regard very favourably the added expertise of new (preferably angel) equity holders, with one in three such firms having actively sought new owners. Equity finance is therefore to be regarded as a ‘package’ from the viewpoint of the smaller firm, with transfer of management skills from venture capitalist to firm sweetening the bitter pill of control-loss.

Journal

Small Business EconomicsSpringer Journals

Published: Sep 29, 2004

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create lists to
organize your research

Export lists, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off