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Control Reluctance and Legitimacy for SMEs Applying Bank Loans

Author

Listed:
  • Lacatus, Viorel Dorin
  • Vaidean, Viorela Ligia

Abstract

SMEs attitude versus external financiers, mainly bank loans, is a constant subject of change, especially for transition economies because it is critical to SMEs’ success in exploiting, indeed surviving, the rapid globalization of markets. The circumstances under which SMEs may accept outside control, evolving towards more openness, are determined by their financial status, the devepolment of technology, size and growth needs. The enterprises’ legitimacy, determined by professional management practices, networking and growth stage, positively influences SMEs’ accessibility to bank financing.

Suggested Citation

  • Lacatus, Viorel Dorin & Vaidean, Viorela Ligia, 2007. "Control Reluctance and Legitimacy for SMEs Applying Bank Loans," MPRA Paper 113703, University Library of Munich, Germany, revised 2007.
    • Handle: RePEc:pra:mprapa:113703
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    References listed on IDEAS

    as
    1. Berggren, Bjorn & Olofsson, Christer & Silver, Lars, 2000. "Control Aversion and the Search for External Financing in Swedish SMEs," Small Business Economics, Springer, vol. 15(3), pages 233-242.
    2. Björn Berggren & Christer Olofsson & Lars Silver, 2000. "Control Aversion and The Search for External Financing in Swedish SMEs," Small Business Economics, Springer, vol. 15(3), pages 233-242, November.
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    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other

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