Access to finance of independent SMEs in Luxembourg. The consequences of the crisis
AbstractThis paper analyses the availability of external funding for Luxembourgish independent small and medium-sized enterprises (SMEs) before and during the crisis. SMEs represent a large part of the private sector in Luxembourg. External finance is essential to enable firms to invest in order to increase their productivity, innovate and create employment. Data used come from the Access to Finance (ATF) survey conducted by STATEC in 2010 and coordinated by Eurostat. This paper provides some stylized facts on access to finance in Luxembourg. It presents results from a regression analysis on how the individual characteristics, the past behavior and the business environment perception affect the decision about whether or not to seek external finance. The results of estimations show that past behavior is the most important determinant of seeking finance. Particular emphasis is placed on assessing the consequences of the 2007-2010 recession by introducing variables related to changes in perception between 2007 and 2010 and growth constraints.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 49330.
Date of creation: 18 Jul 2013
Date of revision:
SMEs; Access to finance; Luxembourg; survey data;
Find related papers by JEL classification:
- D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- M2 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-31 (All new papers)
- NEP-ENT-2013-08-31 (Entrepreneurship)
- NEP-SBM-2013-08-31 (Small Business Management)
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