Small Firm Financing Constraints in the 2008-09 Financial Crisis

2011 ◽  
Author(s):  
Ove Rein Hetland ◽  
Aksel Mjøs
Keyword(s):  
Financial Crisis ◽  
Small Firm ◽  
Financing Constraints ◽  
Firm Financing

scholarly journals Financing Constraints and Access to Credit in a Postcrisis Environment: Evidence from New Farmers in Alabama

2012 ◽  
Vol 44 (4) ◽  
pp. 607-621 ◽  
Author(s):  
Valentina Hartarska ◽  
Dennis Nadolnyak
Keyword(s):  
Financial Crisis ◽  
Survey Data ◽  
Credit Market ◽  
Cash Flows ◽  
Financing Constraints ◽  
2008 Financial Crisis ◽  
Access To Credit ◽  
Self Selection ◽  
The 2008 Financial Crisis ◽  
New Farmers

We use survey data to study the degree to which new farming operations in Alabama were financially constrained after the 2008 financial crisis. Next, we control for farmers' self-selection out of the credit market and identify which farmers were able to secure loans during the period of 2009–2010. The results show that new farmers that started any part of their operation after 2005 were financially constrained but no evidence that their financing constraints were affected by the crisis. As expected, we find that lending was collateral-driven, although lenders also considered farmers' profitability and cash flows.

Financing Micro, Small, and Medium Enterprises in Indian Industry

2019 ◽  
pp. 668-680
Author(s):  
Shromona Ganguly
Keyword(s):  
Small Firm ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Credit Availability ◽  
Firm Financing ◽  
National Output ◽  
Specific Factors ◽  
Employment Generation ◽  
Medium Enterprises

During the last five decades, the micro, small, and medium enterprises (MSME) in the Indian economy have emerged as a dynamic, vibrant segment having a significant contribution towards employment generation and entrepreneurship formation. Despite being an important contributor towards the national output and employment of the economy, the MSME sector continues to face a number of challenges choking its growth, of which credit availability to these enterprises has become one of the most important issues. The existing literature on small firm financing discusses the issues and challenges from a cross-country perspective. There is a lack of detailed research on implications of country-specific factors and financial system on small firm financing. The chapter aims to fill this gap by analyzing the extent and nature of credit constraint faced by small firms in the manufacturing sector in India and how technology may change the situation in the coming years.

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