ESRC Access to Finance for SMEs Conference Series
Enrico Vanino, ERC Research Fellow attended the ESRC Access to Finance for Emerging Market Enterprises ( SMEs) Seminar at University of Birmingham on March 22nd.
The workshop focused on the access to finance for SMEs, with particular interest to businesses owned by ethnic minorities.
The workshop presented the latest trends in SMEs access to finance, based mainly on the data provided by BDRC Continental “SME Finance Monitor” (report and data available at: http://bdrc-continental.com/products/sme-finance-monitor/
The analysis of this data has been particularly interesting differentiating the access to finance for SMEs in terms of size (0 employees, 1-9, 10-50 and 50-250 employees) and by age looking in particular at start-ups (<2 years). First, it has highlighted a general decrease over the last 4 years in the recurrence to external finance by SMEs, in particular for 0 employees firms, registering instead an increase of trade credits, the utilization of personal funds and a general growth in the number of “happy non-seekers” (almost 76%), SMEs that haven’t required and don’t need access to external sources of finance.
Finally, the seminar discussed some alternative and increasing sources of finance used by SMEs (i.e. P2P, Islamic finance, equity and venture capitals) and the effect of agglomeration, spatial distribution, relational skills and credit scoring on SMEs financing strategies.