Investment and financing for SMEs with a partial guarantee and jump risk

Luo, Pengfei; Wang, Huamao; Yang, Zhaojun

doi:10.1016/j.ejor.2015.09.032

Cited by 57 publications

(26 citation statements)

References 24 publications

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“…The main purpose of this plan is to support the growth and development of SMEs in close relation to the employment market [7]. SMEs are viewed as the backbone of an economy [8] since they exert a significant role in lessening poverty, employment creation, foreign trade promotion and technique innovation [9], also contributing meaningfully to the growth of developing economies [10]. So, the strategy adopted in 2008 for Europe via the "Small Business Act" considers the application of the principle "First, think at a small scale" [11] regarding the adoption of policies, regulations and policy measures that should offer support to the needs of SMEs.…”

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confidence: 99%

Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation

et al. 2020

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Small and medium-sized enterprises (SMEs) are crucial for local economic development, playing a noteworthy role in job creation, poverty alleviation and economic growth, but they encounter many funding barriers. The purpose of the current paper is to investigate the impact of investments and innovation on territorial economic growth, as measured by turnover, for Romanian active enterprises, especially SMEs, over the period 2009–2017. By estimating several log–log linear regressions, the quantitative outcomes provide support for a positive influence of investments on turnover. The association was confirmed both for all active enterprises at the national level, as well as for micro, small, middle-sized and big companies. As regards expenditures on innovation, a positive impact on turnover was acknowledged for all enterprises and particularly for big companies, but there was an absence of any statistically significant relation in the case of SMEs. The impact of firm size on turnover was positive for all active enterprises at the national level, along with active micro-units. Also, the estimation results show a positive impact of the number of active micro-units on territorial economic growth. The empirical findings are relevant to managers and policymakers in order to stimulate, encourage and offer support to SMEs’ development through their strategies.

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confidence: 99%

Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation

et al. 2020

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“…and Muñoz, Contreras, Caamaño, and Correia (2011);Luo, Wang, and Yang (2016) use the net present value of the project's future cash flows.…”

Section: Real Options To Invest In a Projectmentioning

confidence: 99%

Model risk in real option valuation

Alexander

Chen

2019

Ann Oper Res

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We introduce a general decision-tree framework to value an option to invest/divest in a project, focusing on the model risk inherent in the assumptions made by standard real option valuation methods. We examine how real option values depend on the dynamics of project value and investment costs, the frequency of exercise opportunities, the size of the project relative to initial wealth, the investor's risk tolerance (and how it changes with wealth) and several other choices about model structure. For instance, contrary to stylised facts from previous literature, real option values can actually decrease with the volatility of the underlying project value and increase with investment costs. And large projects can be more or less attractive than small projects (ceteris paribus) depending on the risk tolerance of the investor, how this changes with wealth, and the structure of costs to invest in the project.

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“…Small and medium size enterprises are the largest number of enterprises in EU. Their share is around 99% from all the registered enterprises in the Union, they are the major source for competitive advantage, economic growth and job creation (Borbás 2015;Luo, Wang, and Yang 2016).…”

Section: Importance Of Innovation For Smes As They Are the Largest Pamentioning

confidence: 99%

Why say no to innovation? Evidence from industrial SMEs in European Union

Carvalho

Yordanova

2018

Journal of Technology Management & Innovation

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This paper aims at presenting the results from a research on the reasons why more than 50% of the small and medium size enterprises (SMEs) in European Union (EU) are non-innovative. The paper intends to find out which are the specific factors that influence the percentage of non-innovative industrial SMEs, considering that SMEs are the main stakeholders and target group of EU funds and policies, and industry is the main direction for economic development.The study employs a cross-sectional study and linear regressions. The findings after applying the research methodology show some already known factors that obstruct SMEs innovation performance like lack of internal finance and little market competition. However, the main contribution of the research is the finding that a low market demand does not contribute to an increase in the percentage of non-innovative enterprises.As a conclusion, all the measures and EU programs for boosting market demand for the purposes of increasing the number of innovative enterprises would be useless.Recently and during the last 20 years, EU has implied many mechanisms, policies, funding opportunities and monitoring so to achieve an increase in enterprises' innovativeness. European Union has spent a lot of money and efforts on that initiative (Chobanova 2016) and has transformed its identity by pursuing that goal and the metrics for innovation development that it sets all the time (Fougère, Segercrantz, and Seeck 2017).At the end, between 2014 and 2020, more than 190 billion euros will have been spent for enterprises' innovations via Horizon 2020 and European Structural and Investment Funds, but still almost 50% of EU enterprises are non-innovative (Eurostat 2017).

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Investment and financing for SMEs with a partial guarantee and jump risk

Abstract: The version in the Kent Academic Repository may differ from the final published version. Users are advised to check http://kar.kent.ac.uk for the status of the paper. Users should always cite the published version of record.

Cited by 57 publications

References 24 publications

Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation

Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation

Model risk in real option valuation

Why say no to innovation? Evidence from industrial SMEs in European Union

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