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Access to finance of independent SMEs in Luxembourg. The consequences of the crisis

Author

Listed:
  • Allegrezza, Serge
  • Ben Aoun-Peltier, Leila
  • Dubrocard, Anne
  • Larue, Solène

Abstract

This paper analyses the availability of external funding for Luxembourgish independent small and medium-sized enterprises (SMEs) before and during the crisis. SMEs represent a large part of the private sector in Luxembourg. External finance is essential to enable firms to invest in order to increase their productivity, innovate and create employment. Data used come from the Access to Finance (ATF) survey conducted by STATEC in 2010 and coordinated by Eurostat. This paper provides some stylized facts on access to finance in Luxembourg. It presents results from a regression analysis on how the individual characteristics, the past behavior and the business environment perception affect the decision about whether or not to seek external finance. The results of estimations show that past behavior is the most important determinant of seeking finance. Particular emphasis is placed on assessing the consequences of the 2007-2010 recession by introducing variables related to changes in perception between 2007 and 2010 and growth constraints.

Suggested Citation

  • Allegrezza, Serge & Ben Aoun-Peltier, Leila & Dubrocard, Anne & Larue, Solène, 2013. "Access to finance of independent SMEs in Luxembourg. The consequences of the crisis," MPRA Paper 49330, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:49330
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    File URL: https://mpra.ub.uni-muenchen.de/49330/1/MPRA_paper_49329.pdf
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    References listed on IDEAS

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    5. Demirgüç-Kunt, A. & Beck, T.H.L. & Honohan, P., 2008. "Finance for all? : Policies and pitfalls in expanding access," Other publications TiSEM aec73d3a-d6eb-457f-9182-3, Tilburg University, School of Economics and Management.
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    12. Rym Ayadi & Beat Bernet & Simona Bovha-Padilla & Tom Franck & Nancy Huyghebaert & Vitor Gaspar & Reinhilde Veugelers, 2009. "Financing SMEs in Europe," SUERF Studies, SUERF - The European Money and Finance Forum, number 2009/3 edited by Morten Balling & Beat Bernet & Ernest Gnan.
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    More about this item

    Keywords

    SMEs; Access to finance; Luxembourg; survey data;

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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