The economic and fiscal benefits of guarantee banks in Germany

Hennecke, Peter; Neuberger, Doris; Ulbricht, Dirk

doi:10.1007/s11187-018-0069-6

Cited by 8 publications

(3 citation statements)

References 30 publications

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“…Hennecke et al . (2018) present an analysis of the state‐backed credit guarantee schemes implemented in Germany and compare the schemes’ effectiveness with guarantee arrangements in other countries. These findings suggest that guarantee programs, by extending credit availability and prompting the investment activities of SMEs, contribute to real gross domestic product increases and guarantee banks’ fiscal gains in states running these schemes.…”

Section: A Policy Viewmentioning

confidence: 99%

Financial Constraints and Small and Medium Enterprises: A Review*

et al. 2020

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We review the literature on financial constraints and the performance of small and medium enterprises (SMEs). We consider the important role that SMEs play in the economies of Australia and the OECD. We examine the role of financial constraints in SME growth, with emphasis on business cycles and credit access. We discuss issues that SMEs face in accessing financial resources for expansion. We look at the literature that evaluates the impact of financial constraints on key outcomes: employment, productivity and wages. We review key policy debates and consider where government involvement might be appropriate.

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Section: A Policy Viewmentioning

confidence: 99%

Financial Constraints and Small and Medium Enterprises: A Review*

et al. 2020

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“…Finally, there is very little discussion of the ramifications of SNIB's work for existing financial instruments such as the main UK's main loan guarantee scheme, the Enterprise Finance Guarantee (EFG). These traditional debt-based loan guarantee schemes have been shown to be very effective at producing superior performance in the form of improved sales, job creation and exports for assisted firms (Cowling and Siepel, 2013) and are adopted widely across Europe to stimulate access to finance in SMEs (Hennecke et al, 2019). These are popular methods of alleviating funding constraints in SMEs as they are market-oriented form of risk-sharing with existing financial providers (mainly banks) and hence reduce informational asymmetries such as "borrower discouragement" (Brown and Lee, 2018) 3 .…”

Section: Equity and Mezzanine Investment Models By Way Of Equity And Loans Up To £10mmentioning

confidence: 99%

Mission-oriented or mission adrift? A critical examination of mission-oriented innovation policies

Brown

2020

European Planning Studies

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This debate article provides a critical examination of the rationale for, and validity of, missionoriented innovation policies. It does so by providing a critique of the "mission-oriented" approach espoused for the new Scottish National Investment Bank (SNIB). The central contention put forward in this paper is that its mission-oriented approach constitutes "fuzzy" policy making which is highly opaque, lacking sufficient detail and fails to align itself properly with the demand conditions within the Scottish innovation system. Arguably, this policy approach could result in significant policy path dependencies which could further reinforce (rather than reverse) the inherent weaknesses within the Scottish innovation system. The paper outlines an alternative "diffusion-oriented" approach which seems better equipped at overcoming the entrenched "low productivity, low innovation equilibrium" evident in Scotland. Regional innovation policy must be properly customised to ensure new agencies are effectively tailored and aligned to the demand conditions within their local innovation and entrepreneurial ecosystems. In short, policy should be context-led rather than mission-led.

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“…For the guarantee scheme to operate over a relatively long time period, it has to be financially sustainable, and fee revenue must cover losses and operating cost. Hennecke et al (2018) present an analysis of the state-backed credit guarantee schemes implemented in Germany and compare the schemes' effectiveness with guarantee arrangements in other countries. These findings suggest that guarantee programs, by extending credit availability and prompting the investment activities of SMEs, contribute to real gross domestic product increases and guarantee banks' fiscal gains in states running these schemes.…”

Section: (I) Sme Finance and Risk-sharing Mechanismmentioning

confidence: 99%