Comparison Between the Financial Structure of SME Versus Large Enterprise Using the BACH Data Base

Firm Financing and Growth: The Influence of Owner’s and Firm’s Characteristics

“…Belonging to a more or less formalized network constitutes an advantage for small firms (Rivaud-Danset, Dubocage, & Salais, 1998). Especially in the start-up stage when the firm is not known and not well established, weak ties can facilitate the firm in getting loans and receiving lower interest rates on loans (Uzzi, 1999) by building their reputation and credibility also through a system of guarantees (Dollinger, 2003;Rivaud-Danset et al, 1998).…”

“…Belonging to a more or less formalized network constitutes an advantage for small firms (Rivaud-Danset, Dubocage, & Salais, 1998). Especially in the start-up stage when the firm is not known and not well established, weak ties can facilitate the firm in getting loans and receiving lower interest rates on loans (Uzzi, 1999) by building their reputation and credibility also through a system of guarantees (Dollinger, 2003;Rivaud-Danset et al, 1998). Furthermore, research showed that building close and long-lasting ties with creditors is beneficial for the availability of financial resources (Cavalluzzo & Cavalluzzo, 1998;Petersen & Rajan, 1994;Severin, Alphonse, & Ducret, 2004).…”

The financing methods for small and medium companies: comparison between Italy and Germany

“…Some researches made a comparison between the financial structure of small and medium-sized enterprises and large ones on several European and American countries; they analyzed their financial structures and performances and the effects of the economic and financial crisis (de Socio et al, 2014;De Bonis et al, 2012;Rivaud-Danset et al, 2001). …”

Does the Financial Performance Matter in Accessing to Finance for Libya’s SMEs?

“…The study by (ALShubiri 2011) has attempted to suggest that over-reliance on current liabilities while holding low or inadequate current assets may cause a firm to incur shortages. To establish a plausible working capital structure, an organization has the responsibility of implementing succinct measures aimed at building a strong foundation for a formidable working capital (Rivaud-Danset et al 2001). According to numerous studies, many financial institutions have over-emphasized the need for a sound ROA for SMEs in order to generate impetus for lending (Mac An Bhaird et al 2010).…”

“…This reason has made banks revolve around the idea of ROA and the extent to which SMEs turn them around to generate synergies in their business operations (Rivaud-Danset et al 2001) .One of the questions that may spur the debate could be, "has the reliance on ROA blurred the extent to which financial institutions can create other synergies for better performance or does the return on assets exclusively explain why SMEs have the energy to demonstrate ability to repay their long-term debt obligations"? According to Nazir and Afza (2009), although the managerial facets such as marketing, operational efficiencies, and manufacturing have spurred the growth of traditional SMEs, working capital and its consequential returns have had enormous effects on small and medium-sized businesses and their survival.…”