IDEAS home Printed from https://ideas.repec.org/a/aio/fpvfcf/v1y2013i15p12-21.html
   My bibliography  Save this article

Romanian SMEs Financing Options: An Empirical Analysis

Author

Listed:
  • Ioan E. Nistor

    (Babes-Bolyai University Faculty of Economics and Business Administration)

  • Daniela-Rodica Popescu

    (Babes-Bolyai University Faculty of Economics and Business Administration)

Abstract

One of the most pressing problems faced by micro, small and medium sized enterprises (henceforth SMEs) in Europe is the access to sufficient funds to sustain their long term growth. Romanian SMEs make no exception. In this context the present paper focuses on analyzing the extent to which external funding sources have contributed to the value added created by the Romanian SMEs between 2007 and 2011.The investigation’s results indicate the existence of a causal link between some forms of external financing (namely bank loans, leasing, factoring, guarantee products and European funds) and the value added created by the Romanian micro, small and medium sized enterprises in the aforementioned period.

Suggested Citation

  • Ioan E. Nistor & Daniela-Rodica Popescu, 2013. "Romanian SMEs Financing Options: An Empirical Analysis," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(15), pages 12-21, December.
    • Handle: RePEc:aio:fpvfcf:v:1:y:2013:i:15:p:12-21
    as

    Download full text from publisher

    File URL: http://feaa.ucv.ro/FPV/015-002.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brown, J David & Earle, John S & Lup, Dana, 2005. "What Makes Small Firms Grow? Finance, Human Capital, Technical Assistance, and the Business Environment in Romania," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 33-70, October.
    2. Pissarides, Francesca & Singer, Miroslav & Svejnar, Jan, 2003. "Objectives and constraints of entrepreneurs: evidence from small and medium size enterprises in Russia and Bulgaria," Journal of Comparative Economics, Elsevier, vol. 31(3), pages 503-531, September.
    3. Levy, Brian, 1993. "Obstacles to Developing Indigenous Small and Medium Enterprises: An Empirical Assessment," The World Bank Economic Review, World Bank, vol. 7(1), pages 65-83, January.
    4. Shinozaki, Shigehiro, 2012. "A New Regime of SME Finance in Emerging Asia: Empowering Growth-Oriented SMEs to Build Resilient National Economies," Working Papers on Regional Economic Integration 104, Asian Development Bank.
    5. Damiaan Persyn & Joakim Westerlund, 2008. "Error-correction–based cointegration tests for panel data," Stata Journal, StataCorp LP, vol. 8(2), pages 232-241, June.
    6. AfDB AfDB, . "Annual Report 2012," Annual Report, African Development Bank, number 461.
    7. Abubakr Saeed, 2009. "Formality Of Financial Sources And Firm Growth: Empirical Evidence From Brazilian Smes 1990-2005," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 1(2 (Octobe), pages 129-140.
    8. Becchetti, Leonardo & Trovato, Giovanni, 2002. "The Determinants of Growth for Small and Medium Sized Firms: The Role of the Availability of External Finance," Small Business Economics, Springer, vol. 19(4), pages 291-306, December.
    9. Mukul Pal & Ioan Alin Nistor, 2011. "Time Duration Decay In Romanian Capital Markets," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 5(5(558)(su), pages 641-646, July.
    10. J. David Brown & John S. Earle & Dana Lup, 2004. "Finance, Human Capital, Technical Assistance, and the Business Environment in Romania," William Davidson Institute Working Papers Series 2004-639, William Davidson Institute at the University of Michigan.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ștefan Cristian Gherghina & Mihai Alexandru Botezatu & Alexandra Hosszu & Liliana Nicoleta Simionescu, 2020. "Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation," Sustainability, MDPI, vol. 12(1), pages 1-22, January.
    2. Esho, Ebes & Verhoef, Grietjie, 2018. "The Funding Gap and the Financing of Small and Medium Businesses: An Integrated Literature Review and an Agenda," MPRA Paper 90153, University Library of Munich, Germany, revised 21 Nov 2018.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brown, J David & Earle, John S & Lup, Dana, 2005. "What Makes Small Firms Grow? Finance, Human Capital, Technical Assistance, and the Business Environment in Romania," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 33-70, October.
    2. Rodríguez-Planas, Núria, 2007. "What Works Best for Getting the Unemployed Back to Work: Employment Services or Small-Business Assistance Programmes? Evidence from Romania," IZA Discussion Papers 3051, Institute of Labor Economics (IZA).
    3. David N Margolis, 2014. "By Choice and by Necessity: Entrepreneurship and Self-Employment in the Developing World," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 419-436, September.
    4. Anjali Kumar & Manuela Francisco, 2005. "Enterprise Size, Financing Patterns, and Credit Constraints in Brazil : Analysis of Data from the Investment Climate Assessment Survey," World Bank Publications - Books, The World Bank Group, number 7330, December.
    5. Besnik A. Krasniqi & Muhamet Mustafa, 2016. "Small firm growth in a post-conflict environment: the role of human capital, institutional quality, and managerial capacities," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1165-1207, December.
    6. El-hadj Bah & Josef C. Brada, 2014. "Labor Markets in the Transition Economies: An Overview," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(1), pages 3-53, June.
    7. Halil D. Kaya, 2023. "The Global Crisis And Retailers:The Obstacles," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 4-10, October.
    8. Khondoker Abdul Mottaleb & Kaliappa P. Kalirajan, 2014. "Determinants Of Labor-Intensive Exports By The Developing Countries: A Cross Country Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(05), pages 1-22.
    9. Janvier D. Nkurunziza, 2005. "The Effect of Credit on Growth and Convergence of Firms in Kenyan Manufacturing," Economics Series Working Papers WPS/2005-01, University of Oxford, Department of Economics.
    10. Toledo, Arcelia & Hernández, José de la Paz & Griffin, Denis, 2010. "Incentives and the growth of Oaxacan subsistence businesses," Journal of Business Research, Elsevier, vol. 63(6), pages 630-638, June.
    11. Madiha Noshad & Mariam Amjad & Muhammad Nouman Shafiq & Seemab Gillani, 2019. "Performance and Obstacles of SMEs: An Empirical Evidence from BRICS Countries," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 1(2), pages 113-132, December.
    12. Thi Quynh Trang Do, 2009. "How firm characteristics affect the level of constrain to growth : An empirical analysis of micro and small firms in Vietnam," Post-Print halshs-00429732, HAL.
    13. Brown, J. David & Earle, John S., 2006. "The microeconomics of creating productive jobs : a synthesis of firm-level studies in transition economies," Policy Research Working Paper Series 3886, The World Bank.
    14. Burja Camelia, 2012. "Human Capital'S Impact On The Performance Of Romanian Knowledge Based Companies," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 337-342, December.
    15. Levering, Britta & Schlömer-Laufen, Nadine, 2012. "Öffentliche Förderung von Unternehmensübernahmen: Notwendigkeit und Ausgestaltung," IfM-Materialien 219, Institut für Mittelstandsforschung (IfM) Bonn.
    16. Erhardt, Eva Christine, 2017. "Microfinance beyond self-employment: Evidence for firms in Bulgaria," Labour Economics, Elsevier, vol. 47(C), pages 75-95.
    17. Bah, El-hadj & Brada, Josef C. & Yigit, Taner, 2011. "With a little help from our friends: The effect of USAID assistance on SME growth in a transition economy," Journal of Comparative Economics, Elsevier, vol. 39(2), pages 205-220, June.
    18. Wolter, Hans-Jürgen, 2010. "Informationsasymmetrien in der familienexternen Nachfolge und ihre Überwindung," IfM-Materialien 191, Institut für Mittelstandsforschung (IfM) Bonn.
    19. Erhardt, Eva, 2017. "Microfinance beyond self-employment: Evidence for firms in Bulgaria," MPRA Paper 79294, University Library of Munich, Germany.
    20. Moog, Petra & Kay, Rosemarie & Schlömer-Laufen, Nadine & Schlepphorst, Susanne, 2012. "Unternehmensnachfolgen in Deutschland: Aktuelle Trends," IfM-Materialien 216, Institut für Mittelstandsforschung (IfM) Bonn.

    More about this item

    Keywords

    micro; small; medium sized enterprises; bank loans; leasing; factoring; microcredit; European Funds; created value added;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aio:fpvfcf:v:1:y:2013:i:15:p:12-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alina Manta (email available below). General contact details of provider: https://edirc.repec.org/data/fecraro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.