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Regional and spatial issues in the financing of small and medium-sized enterprises and new ventures

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  • Ughetto, Elisa
  • Cowling, Marc
  • Lee, Neil

Abstract

This editorial introduces the papers addressing regional and spatial aspects relating to the demand for, and the supply of, finance for small and medium-sized enterprises (SMEs) and start-ups. Reflecting the breadth of financial instruments that are potentially available to SMEs and new ventures (e.g., business angel, bank credit and credit card financing), this special issue offers a combination of up-to-date studies that integrate the regional and spatial perspectives into the debate on SMEs and start-up financing. Overall, the papers contribute to an understanding of the mechanisms by which geography shapes access to finance for SMEs and new ventures, and the implications for local economic activity.

Suggested Citation

  • Ughetto, Elisa & Cowling, Marc & Lee, Neil, 2019. "Regional and spatial issues in the financing of small and medium-sized enterprises and new ventures," LSE Research Online Documents on Economics 100524, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:100524
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    References listed on IDEAS

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    1. Neil Lee & Ross Brown, 2017. "Innovation, SMEs and the liability of distance: the demand and supply of bank funding in UK peripheral regions," Journal of Economic Geography, Oxford University Press, vol. 17(1), pages 233-260.
    2. Tianshu Zhao & Dylan Jones-Evans, 2017. "SMEs, banks and the spatial differentiation of access to finance," Journal of Economic Geography, Oxford University Press, vol. 17(4), pages 791-824.
    3. Iftekhar Hasan & Krzysztof Jackowicz & Oskar Kowalewski & Łukasz Kozłowski, 2019. "The economic impact of changes in local bank presence," Regional Studies, Taylor & Francis Journals, vol. 53(5), pages 644-656, May.
    4. Lee, Neil & Sameen, Hiba & Cowling, Marc, 2015. "Access to finance for innovative SMEs since the financial crisis," Research Policy, Elsevier, vol. 44(2), pages 370-380.
    5. Joern H. Block & Massimo G. Colombo & Douglas J. Cumming & Silvio Vismara, 2018. "New players in entrepreneurial finance and why they are there," Small Business Economics, Springer, vol. 50(2), pages 239-250, February.
    6. Marco Crocco & Fernanda Faria-Silva & Luiz Paulo-Rezende & Carlos J. Rodr�guez-Fuentes, 2014. "Banks and Regional Development: An Empirical Analysis on the Determinants of Credit Availability in Brazilian Regions," Regional Studies, Taylor & Francis Journals, vol. 48(5), pages 883-895, May.
    7. Sumit Agarwal, 2010. "Distance and Private Information in Lending," The Review of Financial Studies, Society for Financial Studies, vol. 23(7), pages 2757-2788, July.
    8. Colin Mason & Yannis Pierrakis, 2013. "Venture Capital, the Regions and Public Policy: The United Kingdom since the Post-2000 Technology Crash," Regional Studies, Taylor & Francis Journals, vol. 47(7), pages 1156-1171, July.
    9. Fabio Bertoni & Diego D’Adda & Luca Grilli, 2016. "Cherry-picking or frog-kissing? A theoretical analysis of how investors select entrepreneurial ventures in thin venture capital markets," Small Business Economics, Springer, vol. 46(3), pages 391-405, March.
    10. Mollick, Ethan, 2014. "The dynamics of crowdfunding: An exploratory study," Journal of Business Venturing, Elsevier, vol. 29(1), pages 1-16.
    11. Robert E. Carpenter & Bruce C. Petersen, 2002. "Capital Market Imperfections, High-Tech Investment, and New Equity Financing," Economic Journal, Royal Economic Society, vol. 112(477), pages 54-72, February.
    12. Bellucci, Andrea & Borisov, Alexander & Zazzaro, Alberto, 2013. "Do banks price discriminate spatially? Evidence from small business lending in local credit markets," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4183-4197.
    13. Colin Mason & Richard Harrison, 2003. "Closing the Regional Equity Gap? A Critique of the Department of Trade and Industry's Regional Venture Capital Funds Initiative," Regional Studies, Taylor & Francis Journals, vol. 37(8), pages 855-868.
    14. Allen N. Berger & Geraldo Cerqueiro & María Fabiana Penas, 2015. "Market Size Structure and Small Business Lending: Are Crisis Times Different from Normal Times?," Review of Finance, European Finance Association, vol. 19(5), pages 1965-1995.
    15. Luca Grilli, 2019. "There must be an angel? Local financial markets, business angels and the financing of innovative start-ups," Regional Studies, Taylor & Francis Journals, vol. 53(5), pages 620-629, May.
    16. Michael Fritsch & David J. Storey, 2014. "Entrepreneurship in a Regional Context: Historical Roots, Recent Developments and Future Challenges," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 939-954, June.
    17. Carling, Kenneth & Lundberg, Sofia, 2005. "Asymmetric information and distance: an empirical assessment of geographical credit rationing," Journal of Economics and Business, Elsevier, vol. 57(1), pages 39-59.
    18. Francesca Tenca & Annalisa Croce & Elisa Ughetto, 2018. "Business Angels Research In Entrepreneurial Finance: A Literature Review And A Research Agenda," Journal of Economic Surveys, Wiley Blackwell, vol. 32(5), pages 1384-1413, December.
    19. Michael Fritsch & Florian Noseleit, 2013. "Indirect employment effects of new business formation across regions: The role of local market conditions," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 361-382, June.
    20. Ben Craig & William Jackson & James Thomson, 2008. "Credit market failure intervention: Do government sponsored small business credit programs enrich poorer areas?," Small Business Economics, Springer, vol. 30(4), pages 345-360, April.
    21. Steve Mercieca & Klaus Schaeck & Simon Wolfe, 2009. "Bank Market Structure, Competition, and SME Financing Relationships in European Regions," Journal of Financial Services Research, Springer;Western Finance Association, vol. 36(2), pages 137-155, December.
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    Cited by:

    1. Bernadette Power & Gavin C. Reid, 2023. "Lifting the hood of supply and demand for trademarks of start‐ups: Partial observability estimates," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 311-321, January.
    2. Martin Andersson & Johan E. Eklund & Alexandra Tsvetkova, 2023. "Spatial variations in financial constraints of SMEs—evidence from firm-level estimates of investment-cash flow sensitivities in Sweden," Small Business Economics, Springer, vol. 60(4), pages 1683-1698, April.
    3. Luca Fare & Marcus Dejardin & Eric Toulemonde, 2023. "Bankruptcy recovery rate and small businesses' innovation," DeFiPP Working Papers 2302, University of Namur, Development Finance and Public Policies.
    4. Takano, Keisuke & Okamuro, Hiroyuki, 2020. "Place-based SME finance policy and local industrial revivals: An empirical analysis of a directed credit program after WW2," TDB-CAREE Discussion Paper Series E-2020-01, Teikoku Databank Center for Advanced Empirical Research on Enterprise and Economy, Graduate School of Economics, Hitotsubashi University.
    5. Rosaria Ferlito & Rosario Faraci, 2022. "Sustainable Hybrid Business Model of Benefit Corporation: The Case of an Italian Film Production Company," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    6. Fanjul, Ana P. & Herrera, Liliana & Munoz-Doyague, Maria F., 2023. "Fostering rural entrepreneurship: An ex-post analysis for Spanish municipalities," Technological Forecasting and Social Change, Elsevier, vol. 197(C).

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    More about this item

    Keywords

    finance; geography; new ventures; small and medium-sized enterprises (SMEs);
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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