Author:
Godke Veiga Marcelo,McCahery Joseph A.
Abstract
AbstractWhile small and medium-sized enterprises (SMEs) are important for economic growth and employment, they face numerous obstacles in accessing external finance. In this article, we review recent developments in the availability of financing for SMEs in Brazil, focusing on the greater use of equity and debt for SMEs. In assessing the barriers to external financing, we focus on the role of bank characteristics, market structure and variations of interest rate spreads across banks and time. Moreover, as banks retreat from SME financing, we examine the potential for SMEs to seek new sources of financing from private equity and venture capital funds. We examine the changes in the availability of bank loans between 2014 and 2016. By considering demand, we estimate the SME loan gap based on Central Bank and publicly available data. Our results show that the loan gap in Brazil is substantial.
Publisher
Springer Science and Business Media LLC
Subject
Law,Political Science and International Relations,Business and International Management
Reference52 articles.
1. Akerlof GA (1970) The market for ‘lemons’: quality uncertainty and the market mechanism. Q J Econ 84:488–500
2. Associação Brasileira de Private Equity & Venture Capital & KPMG (2016) Consolidação de dados—indústria de private equity e venture capital no Brasil. KPMG & ABVCAP, São Paulo
3. Ayadi R, Gadi S (2013) Access by MSMEs to finance in the Southern and Eastern Mediterranean: what role for credit guarantee schemes? https://www.medpro-foresight.eu/system/files/MEDPRO%2520TR%2520No%252035%2520WP6%2520Ayadi.pdf. Accessed 9 Feb 2019
4. Ayyagari M, Demirgüç-Kunt A, Maksimovic V (2011) How important are financing constraints? The role of finance in the business environment. World Bank Econ Rev 22:483–516
5. Banco Central do Brasil (2014) Relatorio de Economia Bancaria e Credito. Brasilia
Cited by
21 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献