Literature review: investment readiness level of small and medium sized companies

Abstract

This contribution outlines the rising and promising research topic related to investment readiness level (IRL) of Small and Medium Sized Companies (SMEs). To advance this field of investigation and to bring potential future research directions to light, this paper reviews and explores the current state of research by means of a literature review contemplating quantitative facets in the methodology. While facilitating comparisons in applied methods of earlier development and progress, it uncovers core areas where research is still required. By considering the present body of literature focusing on the IRL of SMEs as a whole, this article ends by proposing two essential recommendations for future research effort. The paper captures the multi-faceted nature of IRL to reveal the range of conditions of alternative financial sources affecting the activities of researchers, entrepreneurs, investors and politicians alike.

Accounting knowledge in innovative firms - direct contacts with external auditors for strategic actions

“…For instance, their use of accounting information is determined by their education level and comfort in interpreting such information (Shawn and Van Auken, 2013). In line with this, studies show that accountants are rated as the most used external source of advice for small firms and that they are important in situations where firm management lack finance and accounting skills (Bennett and Robson, 1999;Berry, Sweeting and Goto, 2006;Blackburn and Jarvis, 2010;Halabi, Barrett and Dyt, 2010), and where, for instance, financiers need to be convinced about a venture's investment potential (Fellnhofer, 2015;Paananen, Renders and Blomkvist, 2016). In such situations, an external auditor (Certified Public Accountant, CPA) can translate and make the accounting information from financial reporting understandable to the owner-manager (Marriott and Marriott, 2000;Perren and Grant, 2000).…”

Investasi dalam sumber daya bersama untuk pembangunan inklusif dan berkelanjutan: Pembelajaran dari Guatemala, Meksiko, Nepal dan Namibia

“…Konsep kesiapan investasi telah muncul sebagai alat pemandu kebijakan untuk mengurangi sejumlah penghalang dalam investasi bisnis (Mason dan Kwok 2010). Kesiapan investasi dipahami sebagai kemampuan pengelola CFI untuk memahami kebutuhan investor dan menjawab kebutuhan tersebut dengan memberikan informasi yang memadai dan membangun kredibilitas dan kepercayaan sehingga investor akan menyediakan pendanaan (Fellnhofer 2015).…”

The Relationships between Companies and Bank System: An Analysis of Italian Context

“…In particular, within the literature review, we considered two research branches according to our research goal (Fellnhofer, 2015;Mahérault, 2000;Herrera & Minetti, 2007): i) the first branch is focused on the company's financial structure and the most appropriate relation between investments and funding; ii) the second one is related to traditional and alternative funding instruments, which could be most appropriate for the specific company's situation.…”