The use and impacts of bank support on UK small and medium-sized enterprises

Han, Liang; Benson, Alan; Chen, Jean Jinghan; Zhang, Song

doi:10.1177/0266242612455008

Cited by 19 publications

(14 citation statements)

References 69 publications

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“…In this way, relational banking may increase small firms' access to bank facilities or, at least, lead to better terms of contract. For instance, in a study of the effect of bank provided business advice on the financial condition of small firms, Han et al (2012) found that better relationships with banks lowered the entrepreneur's perceptions of difficulties in accessing finance. In line with this, we speculate that applying to a firm's main bank will lower perceived risk for both the entrepreneur and the bank.…”

Section: Independent Variablesmentioning

confidence: 99%

Business advice and lending in small firms

Rostamkalaei

Freel

2016

Environment and Planning C: Politics and Space

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The literature on lending to small firms has primarily focused on the mechanisms and methods used to evaluate entrepreneurs and businesses and on the types of firms that are more likely to experience unfavourable application outcomes. That is, the focus of most empirical research is on supply-side decisions. The current research attempts to shed some light on demand-side considerations. Drawing upon data collected as the UK SME Finance Monitor (2011-2014), we identify links between entrepreneurs' diligence, business risk and finance-related advice-seeking prior to initiating loan and overdraft applications. The results show evidence of the usefulness of advice in ameliorating, both structural and strategic, business risk and improving the prospects of successful debt applications to banks.

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Section: Independent Variablesmentioning

confidence: 99%

Business advice and lending in small firms

Rostamkalaei

Freel

2016

Environment and Planning C: Politics and Space

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“…Moreover, Hoshi et al (1990), Grunert andWeber (2009), Shimizu (2012), Gambini and Zazzaro (2013), and Han et al (2014) show the possibility that close firm-bank relationships improve business performance and prevent firms from going bankrupt. 2 For further details, see the ''Appendix''.…”

Section: Introductionmentioning

confidence: 99%

Banking relationship numbers and new business bankruptcies

Ogane

2015

Small Bus Econ

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This paper examines the effect of the number of correspondent financial institutions for small and medium-sized enterprises (SMEs) at the first settlement of accounts on subsequent firm bankruptcy risk using survival models. We use a unique firm-level data set of 2667 unlisted SMEs incorporated in Japan between April 2003 and December 2009. Moreover, in the nature of the analysis, we focus on firms that transact with at least one financial institution and disclose information about profit at the first settlement. We find that more correspondent financial institutions for SMEs at the first settlement increase subsequent firm bankruptcy risk. Furthermore, we check the robustness of this result with the method of instrumental variables (IV methods) and obtain similar results; in other words, the risk of firm bankruptcy increases with the number of correspondent financial institutions.Keywords Correspondent financial institutions Á Multiple bank relationships Á Bankruptcy Á Small and medium-sized enterprises

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“…On the eve of the World War I, residents' deposits in British banks totaled almost £1.2 billion, with a total bank-note circulation of only £45.5 million (Ferguson 2009). UK SME finance was left predominantly to the big four modern banks-Barclays PLC , HSBC Holdings PLC, Lloyds Banking Group PLC, and Royal Bank of Scotland Group PLC-who still hold 78% of the SME market and 95 percent in the case of Scotland (Han et al 2012).…”

Section: Development Of Financial Institutionsmentioning

confidence: 99%

A Reform Strategy for the UK

Sanders

Stenkula

Dunstan

et al. 2020

The Entrepreneurial Society

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In this chapter we outline a reform strategy to promote an entrepreneurial society in the UK. To put it in the words of the Varieties of Capitalism framework, the UK today represents a distinct liberal market economy with a deregulated environment, flexible labor markets, well-funded elite universities, and strong protection of intellectual property rights. Overall, the entrepreneurial ecosystem is supportive, but bottlenecks remain regarding radical innovation, export orientation, and informal investment. To address these shortcomings, the UK should aim at strengthening the All authors acknowledge financial support from the European Union's Horizon 2020 research and innovation program under grant agreement No 649378. László Szerb and Balázs Páger also acknowledge support from the National Scientific Research Fund of Hungary (OTKA/NKFI grant no. 120289, titled as Entrepreneurship and Competitiveness investigations in Hungary based on the Global Entrepreneurship Monitor surveys 2017-2019). Mikael Stenkula also gratefully acknowledges financial support from Jan Wallanders och Tom Hedelius stiftelse and from the Marianne and Marcus Wallenberg Foundation.

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The use and impacts of bank support on UK small and medium-sized enterprises

Cited by 19 publications

References 69 publications

Business advice and lending in small firms

Business advice and lending in small firms

Banking relationship numbers and new business bankruptcies

A Reform Strategy for the UK

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