IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-1-4419-7527-0_7.html
   My bibliography  Save this book chapter

The Changing Landscape of Small-Firm Finance

In: Advances in Entrepreneurial Finance

Author

Listed:
  • William Dunkelberg

    (Temple University
    National Federation for Independent Businesses)

  • Jonathan A. Scott

Abstract

This chapter reflects on the changes in financing small firms during the past 25 years by reviewing the extant literature on how small businesses are financed at their inception, how continuing operations are financed, and how changing technologies have shaped capital markets for small firms. Our review of a unique small firm time series data set shows that many of the obstacles small firms faced in the early 1980s have mostly disappeared. New firm formations continue to depend on owner savings, friends, and family, while venture capital remains a microscopic proportion of total new firm financing in any given year. Once operating, small firms depend primarily on banks for operating support and capital investment, but the use of credit cards (business and personal) and nonbank sources (finance/leasing companies) is increasing in importance. We end with a discussion of two current issues in small firm finance: the cumulative impact of banking consolidation in the USA and the effect of the current financial crisis in the USA on small firm access to capital.

Suggested Citation

  • William Dunkelberg & Jonathan A. Scott, 2011. "The Changing Landscape of Small-Firm Finance," Springer Books, in: Advances in Entrepreneurial Finance, chapter 0, pages 121-139, Springer.
    • Handle: RePEc:spr:sprchp:978-1-4419-7527-0_7
    DOI: 10.1007/978-1-4419-7527-0_7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

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


    Cited by:

    1. Prieger, James E., 2023. "Local banking markets and barriers to entrepreneurship in minority and other areas," Journal of Economics and Business, Elsevier, vol. 124(C).
    2. Dunkelberg, William & Moore, Carmen & Scott, Jonathan & Stull, William, 2013. "Do entrepreneurial goals matter? Resource allocation in new owner-managed firms," Journal of Business Venturing, Elsevier, vol. 28(2), pages 225-240.
    3. William Dunkelberg & Carmen Moore & Jonathan Scott & William Stull, 2012. "Do Entrepreneurial Goals Matter? Resource Allocation in New Owner-Managed Firms," DETU Working Papers 1203, Department of Economics, Temple University.

    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:spr:sprchp:978-1-4419-7527-0_7. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.