| Autor: |
Ross Brown, José M. Liñares-Zegarra, John O.S. Wilson |
| Přispěvatelé: |
University of St Andrews. Centre for the Study of Philanthropy & Public Good, University of St Andrews. Centre for Responsible Banking and Finance, University of St Andrews. School of Management |
| Jazyk: |
angličtina |
| Rok vydání: |
2022 |
| Předmět: |
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| Popis: |
Funding: We gratefully acknowledge the ESRC-funded Enterprise Research Centre. In this paper, we investigate whether innovative small and medium sized enterprises (SMEs) are more likely to be discouraged from applying for external finance than non-innovators. These so-called discouraged borrowers are credit worthy SMEs who choose not to apply for external finance despite the fact that this is needed. We find that SMEs undertaking pure product and joint product and process innovation have a significantly higher incidence of borrower discouragement than non-innovative counterparts. Moreover, radical and incremental product innovators are more likely to be discouraged relative to non-innovative counterparts. Innovative activity can increase borrower discouragement for a myriad of reasons including fear of rejection, reluctance to take on additional risk, negative perceptions of the funding application process and perceived negative economic conditions. Overall, our results suggest a need for targeted policy interventions in order to alleviate borrower discouragement of innovative SMEs, as well as a closer alignment between innovation and SME finance policy. Publisher PDF |
| Databáze: |
OpenAIRE |
| Externí odkaz: |
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