SME Performance
Show Less

SME Performance

Separating Myth from Reality

John Watson

The performance of Small and Medium-sized Enterprises (SMEs) has been a subject of continual interest to both researchers and practitioners. This enlightening book investigates the pitfalls which have affected the assessment of SME performance in much of the past research.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 7: A Qualitative Analysis

John Watson


INTRODUCTION Winborg and Landstrom (2001) argue that financial problems (lack of funds) constrain the development and growth of SMEs because many are unable to access the same kinds of growth funding normally available to large businesses. This notion of a ‘finance gap’ within the SME sector has been supported by a number of researchers, for example: Berger and Udell (1998); Pissarides (1999); Becchetti and Trovato (2002); and Carter et al. (2003). It has also been suggested that the ‘finance gap’ might be even more acute for female-owned SMEs (Riding and Swift 1990; Breen et al. 1995; Brush et al. 2001). However, Riding and Swift (1990, p.327), note that while ‘[p]revious work reveals a pervasive perception that there is discrimination by bankers against women business owners’, this belief appears to be based on subjective perceptions without any ‘real statistical evidence’. Further, these ‘barriers’ to SME growth are generally believed to result from deficiencies in capital markets and include instances where SME owners’ loan applications are rejected together with instances where owners are ‘discouraged’ from applying for funding from a bank because they believe their application will be rejected (Kon and Storey 2003). For example, Levenson and Willard (2000) found that about 2% of US firms did not obtain the funding for which they had applied and approximately 4% of firms were ‘discouraged’ from applying for funding because they expected their request to be turned down. It seems, therefore, that twice as many US firms are ‘discouraged’ from applying for funding...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.