Small- and Medium-size Enterprise Financing in Eastern Europe
Title | Small- and Medium-size Enterprise Financing in Eastern Europe PDF eBook |
Author | Leora Klapper |
Publisher | World Bank Publications |
Pages | 60 |
Release | 2002 |
Genre | New business enterprises |
ISBN |
There is currently a large interest in understanding firms' access to finance, particularly in the financing of small- and medium-size enterprises (SMEs). But the financing patterns of SMEs across countries is not well understood. For example, little is known about the relative importance of equity, debt, and inter-firm financing for SMEs across countries. The authors use the Amadeus database, which includes financial information on over 97,000 private and publicly traded firms in 15 Eastern and Central European countries. The Amadeus database allows the authors the opportunity to provide a new analysis of the general financing patterns of private firms across a large sample of Eastern European countries. The summary statistics show that the size of the SME sector (as measured by the percentage of total employment) in Eastern European countries is smaller than in most developed economies. Although the authors find in almost every country in the sample a large number of SMEs as a percentage of total firms, the SMEs in Eastern Europe are generally small and hire few employees. However, SMEs seem to constitute the most dynamic sector of the Eastern European economies, relative to large firms. In general, the SME sector comprises relatively younger, more highly leveraged, and more profitable and faster growing firms. This suggests that a new type of firm is emerging in transition economies that is more market- and profit-oriented. But at the same time, these firms appear to have financial constraints that impede their access to long-term financing and ability to grow.
Small- and Medium-Size Enterprise Financing in Eastern Europe
Title | Small- and Medium-Size Enterprise Financing in Eastern Europe PDF eBook |
Author | Leora F. Klapper |
Publisher | |
Pages | 53 |
Release | 2016 |
Genre | |
ISBN |
There is currently a large interest in understanding firms' access to finance, particularly in the financing of small- and medium-size enterprises (SMEs). But the financing patterns of SMEs across countries is not well understood. For example, little is known about the relative importance of equity, debt, and inter-firm financing for SMEs across countries.The authors use the Amadeus database, which includes financial information on over 97,000 private and publicly traded firms in 15 Eastern and Central European countries. The Amadeus database allows the authors the opportunity to provide a new analysis of the general financing patterns of private firms across a large sample of Eastern European countries. The summanry statistics show that the size of the SME sector (as measured by the percentage of total employment) in Eastern European countries is smaller than in most developed economies. Although the authors find in almost every country in the sample a large number of SMEs as a percentage of total firms, the SMEs in Eastern Europe are generally small and hire few employees. However, SMEs seem to constitute the most dynamic sector of the Eastern European economies, relative to large firms. In general, the SME sector comprises relatively younger, more highly leveraged, and more profitable and faster growing firms. This suggests that a new type of firm is emerging in transition economies that is more market- and profit-oriented. But at the same time, these firms appear to have financial constraints that impede their access to long-term financing and ability to grow.This paper - a product of Finance, Development Research Group - is part of a larger effort in the group to better understand small- and medium-size enterprise financing.
Financing Small and Medium-size Enterprises with Factoring
Title | Financing Small and Medium-size Enterprises with Factoring PDF eBook |
Author | Marie-Renée Bakker |
Publisher | World Bank Publications |
Pages | 50 |
Release | 2004 |
Genre | Factoring (Finance) |
ISBN | 9788389188175 |
Factoring is a form of asset-based finance where the credit is extended based on the value of the borrower's accounts receivable. In recent years factoring has experienced phenomenal growth and has become an important source of financing--especially short-term working capital--for small and medium-size enterprises and corporations, reaching a worldwide volume of 760 billion euro in 2003. Although the importance of factoring varies considerably around the world, it occurs in most countries and is growing especially quickly in many developing countries. Bakker, Klapper, and Udell explore the advantages of factoring over other types of lending for firms in developing economies, and discuss the informational, legal, tax, and regulatory barriers to its growth. They also examine the role of factoring in the eight Eastern European countries that became EU members on May 1, 2004--the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, the Slovak Republic, and Slovenia, referred to as the EU 8. The authors conclude that factoring offers key advantages over other lending products and is likely to become more important in these countries, and suggest policies to accelerate its development. This paper--a joint product of the Finance Team, Development Research Group and the Private and Financial Sector Development Department--is part of a larger effort in the Bank to study access to financing.
Small Firms and Entrepreneurship in Central and Eastern Europe
Title | Small Firms and Entrepreneurship in Central and Eastern Europe PDF eBook |
Author | Oliver Pfirrmann |
Publisher | Springer Science & Business Media |
Pages | 338 |
Release | 2002-02-13 |
Genre | Business & Economics |
ISBN | 9783790814675 |
Much of the research on transformation/transition in Central and Eastern European Countries (CEECs) focuses on macroeconomic issues (inflation, economic growth, employment ...). Little research has been devoted so far to microeconomic analysis. Recently the issue of new enterprises and firm founders has moved to the centre of economic and policy considerations. Readers of this book will learn about the role played by these firms in the transformation of central and eastern European countries. The book also includes contributions from Central and Eastern Europe on which little or no investigation has been performed until now (Yugoslavia, Romania, Slovakia).
Proceedings of the EFTA workshop on financing small and medium-sized enterprises (SMEs) with Central and East European Countries
Title | Proceedings of the EFTA workshop on financing small and medium-sized enterprises (SMEs) with Central and East European Countries PDF eBook |
Author | |
Publisher | |
Pages | 0 |
Release | 1992 |
Genre | Business enterprises |
ISBN |
Contemporary Issues in Business and Financial Management in Eastern Europe
Title | Contemporary Issues in Business and Financial Management in Eastern Europe PDF eBook |
Author | Simon Grima |
Publisher | Emerald Group Publishing |
Pages | 179 |
Release | 2018-10-02 |
Genre | Business & Economics |
ISBN | 1787564495 |
This special 100th edition of Contemporary Issues in Economic and Financial Analysis dedicates 14 chapters to contemporary issues in business and financial management in Eastern Europe by authors invited mainly from the Rostov State University of Economics.
Capital Structure and Its Choice in Central and Eastern Europe
Title | Capital Structure and Its Choice in Central and Eastern Europe PDF eBook |
Author | Péter Hernádi |
Publisher | |
Pages | 35 |
Release | 2013 |
Genre | |
ISBN |
We analyze the determinants of capital structure and its choice by small and medium-sized enterprises in Central and Eastern Europe from 2002 to 2007. We test the relevance of the three main theories: the Static Tradeoff theory, the Pecking Order theory, and the Agency Theory; which have been derived primarily for developed markets; while our knowledge on their validity for emerging European countries is limited. We confirm the positive impact of size and asset tangibility on the leverage, while rejecting both the positive impact of profitability and tax as well as the negative impact of business risk and non-debt tax shields. We report that SMEs behave homogeneously, and the relevant capital structure determinants show remarkable steadiness. Our results show a special time varying behavior, in which the relevant determinants become stronger, while most of the country-specific factors present weakening effects. We argue that firms of the CEE countries remarkably converged their financial decision-making procedure to that of developed countries through the investigated period. The relevance of Tradeoff theory is weak, as firms respect a one-sided upper threshold rather than converging to a fixed target on both sides, while they are not indifferent to the hierarchy of financing alternatives.