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Advisors for micro-entrepreneurs: is one as good as another in accessing alternative finance?

Author

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  • Maria Gaia Soana

    (University of Parma)

  • Doriana Cucinelli

    (University of Parma)

  • Beatrice Ronchini

    (University of Parma)

Abstract

Using a novel large database of Italian micro-entrepreneurs, we investigate how different sources of external business advice affect access to alternative finance. We distinguish three categories of external business advice: professional financial, professional non-financial, and non-professional. We also test whether financial knowledge of micro-entrepreneurs enhances their advice seeking for financial decision-making. We find that the use of alternative financial instruments increases when external business advisors are used, but some are more useful than others. Only professional financial advice is shown to increase the probability of accessing alternative finance by micro-enterprises, while non-professional and professional non-financial advice does not have the same effect. We also find that being more financially literate increases the probability that micro-entrepreneurs seek advice from highly professional sources, i.e., objective financial knowledge helps shape the quality of financial advice requested.

Suggested Citation

  • Maria Gaia Soana & Doriana Cucinelli & Beatrice Ronchini, 2025. "Advisors for micro-entrepreneurs: is one as good as another in accessing alternative finance?," Small Business Economics, Springer, vol. 64(3), pages 989-1033, March.
    • Handle: RePEc:kap:sbusec:v:64:y:2025:i:3:d:10.1007_s11187-024-00942-y
    DOI: 10.1007/s11187-024-00942-y
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    More about this item

    Keywords

    External business advice; alternative finance; micro-entrepreneurs; financial knowledge;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • G2 - Financial Economics - - Financial Institutions and Services

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