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  • Advice_and_banks_July7_2016

    Rights statement: The final, definitive version of this article has been published in the Journal, Environment and Planning C, 35 (3), 2017, © SAGE Publications Ltd, 2017 by SAGE Publications Ltd at the Environment and Planning C page: http://journals.sagepub.com/home/epc on SAGE Journals Online: http://journals.sagepub.com/

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    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

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Business advice and lending in small firms

Research output: Contribution to journalJournal article

Published
<mark>Journal publication date</mark>1/05/2017
<mark>Journal</mark>Environment and Planning C: Government and Policy
Issue number3
Volume35
Number of pages19
Pages (from-to)537-555
Publication statusPublished
Early online date29/08/16
Original languageEnglish

Abstract

The literature on lending to small firms has primarily focused on the mechanisms and methods used to evaluate entrepreneurs and businesses and on the types of firms that are more likely to experience unfavourable application outcomes. That is, the focus of most empirical research is on supply-side decisions. The current research attempts to shed some light on demand-side considerations. Drawing upon data collected as the UK SME Finance Monitor (2011–2014), we identify links between entrepreneurs' diligence, business risk and finance-related advice-seeking prior to initiating loan and overdraft applications. The results show evidence of the usefulness of advice in ameliorating, both structural and strategic, business risk and improving the prospects of successful debt applications to banks.

Bibliographic note

The final, definitive version of this article has been published in the Journal, Environment and Planning C, 35 (3), 2017, © SAGE Publications Ltd, 2017 by SAGE Publications Ltd at the Environment and Planning C page: http://journals.sagepub.com/home/epc on SAGE Journals Online: http://journals.sagepub.com/