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Public financing and entrepreneurship: behaviour and regional heterogeneity of SMEs


  • García-Tabuenca , Antonio

    () (Universidad de Alcalá)

  • Crespo-Espert , José Luis

    () (Universidad de Alcalá)

  • Cuadrado-Roura , Juan R.

    () (Universidad de Alcalá)


The existence of restrictions for small- and medium-sized enterprises(SMEs) to access long-term credit has led governments to establish institutionalsystems to facilitate such access and reduce the cost of credit, with the conditionthat its feasibility is justified (and assessed) and there are no distortions as regardscompetition. Very few empirical in-depth studies exist regarding this field of academicresearch, and scarce attention has been paid from a regional perspective.Due to the characteristics of the business structures in the different regions, as wellas the existence of agglomeration economies and the regional dispersion of the entrepreneurshiprate, this paper analyses the effects of the productive financing supportmodel, provided by the Government of Spain, through the Instituto de CréditoOficial (ICO) [Official Credit Institute], on the behaviours and performances of thebeneficiary companies. In the last decade, this source of financing has assigned30,000 million euro. The results show the general acceptance of this policy due toits adaptation to the interests of the companies and its contribution to the improvementof the economic-financial efficiency indicators. Regionally, no substantialdifferences have been observed, but the results of this research show a greater contributionto the dynamism of the more progressive regions.

Suggested Citation

  • García-Tabuenca , Antonio & Crespo-Espert , José Luis & Cuadrado-Roura , Juan R., 2009. "Public financing and entrepreneurship: behaviour and regional heterogeneity of SMEs," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 15, pages 89-109.
  • Handle: RePEc:ris:invreg:0090

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    More about this item


    Public financing; business efficiency; entrepreneurial activity; regional differences;

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General


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