Small- and Medium-Size Enterprise Financing in Eastern Europe
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,...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2002/12/2082429/small-medium-size-enterprise-financing-eastern-europe http://hdl.handle.net/10986/19200 |
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okr-10986-192002021-04-23T14:03:43Z Small- and Medium-Size Enterprise Financing in Eastern Europe Klapper, Leora F. Sarria-Allende, Virginia Sulla, Victor SMALL & MEDIUM SCALE ENTERPRISES ENTERPRISE SUPPORT FINANCIAL INTERMEDIATION EQUITY FINANCE DEBT FINANCING FINANCING OPTIONS PRIVATE SECTOR TRANSITION ECONOMIES MARKET ORIENTATION PROFITABILITY GROWTH PATTERNS ACCOUNTING ACCOUNTING STANDARDS AGENCY PROBLEMS AGRICULTURE ASYMMETRIC INFORMATION AUDITORS BALANCE SHEET BALANCE SHEETS BANK LENDING BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BASE YEAR BORROWING BUDGET CONSTRAINTS BUSINESS ENVIRONMENT COMPANY COMPETITIVENESS CONGLOMERATES CORPORATE PERFORMANCE CORPORATE STRUCTURE CORPORATIONS DEBT DOWNSIZING ECONOMIES OF SCALE EMERGING MARKETS EMPLOYMENT ENTREPRENEURS ENTREPRENEURSHIP EXPANSION EXPECTED VALUE FINANCIAL DATA FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RATIOS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL SYSTEMS FIRM SIZE FIRMS FOREIGN MARKETS FUTURE RESEARCH GDP GDP PER CAPITA GROWTH RATE HIGHLY LEVERAGED FIRMS INCOME STATEMENTS INFLATION INTEREST RATES JOB CREATION LAWS LEGAL PROTECTION LIQUIDITY LISTED COMPANIES MACROECONOMIC GROWTH MEDIUM SIZE ENTERPRISES OWNERSHIP STRUCTURE PRESENT VALUE PRIVATE CAPITAL PRIVATIZATION PRODUCTION EFFICIENCY PRODUCTIVITY PROFITABILITY REGRESSION ANALYSIS RETAINED EARNINGS RETURN ON ASSETS RETURN ON EQUITY SHAREHOLDERS SMALL FIRMS SME SME DEVELOPMENT SME SECTOR STATE ENTERPRISES STRUCTURAL CHANGE SUBSIDIARIES TRANSITION ECONOMIES VENDORS WORKING CAPITAL GROWTH PATTERNS 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. 2014-08-01T17:38:44Z 2014-08-01T17:38:44Z 2002-12 http://documents.worldbank.org/curated/en/2002/12/2082429/small-medium-size-enterprise-financing-eastern-europe http://hdl.handle.net/10986/19200 English en_US Policy Research Working Paper;No. 2933 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
SMALL & MEDIUM SCALE ENTERPRISES ENTERPRISE SUPPORT FINANCIAL INTERMEDIATION EQUITY FINANCE DEBT FINANCING FINANCING OPTIONS PRIVATE SECTOR TRANSITION ECONOMIES MARKET ORIENTATION PROFITABILITY GROWTH PATTERNS ACCOUNTING ACCOUNTING STANDARDS AGENCY PROBLEMS AGRICULTURE ASYMMETRIC INFORMATION AUDITORS BALANCE SHEET BALANCE SHEETS BANK LENDING BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BASE YEAR BORROWING BUDGET CONSTRAINTS BUSINESS ENVIRONMENT COMPANY COMPETITIVENESS CONGLOMERATES CORPORATE PERFORMANCE CORPORATE STRUCTURE CORPORATIONS DEBT DOWNSIZING ECONOMIES OF SCALE EMERGING MARKETS EMPLOYMENT ENTREPRENEURS ENTREPRENEURSHIP EXPANSION EXPECTED VALUE FINANCIAL DATA FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RATIOS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL SYSTEMS FIRM SIZE FIRMS FOREIGN MARKETS FUTURE RESEARCH GDP GDP PER CAPITA GROWTH RATE HIGHLY LEVERAGED FIRMS INCOME STATEMENTS INFLATION INTEREST RATES JOB CREATION LAWS LEGAL PROTECTION LIQUIDITY LISTED COMPANIES MACROECONOMIC GROWTH MEDIUM SIZE ENTERPRISES OWNERSHIP STRUCTURE PRESENT VALUE PRIVATE CAPITAL PRIVATIZATION PRODUCTION EFFICIENCY PRODUCTIVITY PROFITABILITY REGRESSION ANALYSIS RETAINED EARNINGS RETURN ON ASSETS RETURN ON EQUITY SHAREHOLDERS SMALL FIRMS SME SME DEVELOPMENT SME SECTOR STATE ENTERPRISES STRUCTURAL CHANGE SUBSIDIARIES TRANSITION ECONOMIES VENDORS WORKING CAPITAL GROWTH PATTERNS |
| spellingShingle |
SMALL & MEDIUM SCALE ENTERPRISES ENTERPRISE SUPPORT FINANCIAL INTERMEDIATION EQUITY FINANCE DEBT FINANCING FINANCING OPTIONS PRIVATE SECTOR TRANSITION ECONOMIES MARKET ORIENTATION PROFITABILITY GROWTH PATTERNS ACCOUNTING ACCOUNTING STANDARDS AGENCY PROBLEMS AGRICULTURE ASYMMETRIC INFORMATION AUDITORS BALANCE SHEET BALANCE SHEETS BANK LENDING BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BASE YEAR BORROWING BUDGET CONSTRAINTS BUSINESS ENVIRONMENT COMPANY COMPETITIVENESS CONGLOMERATES CORPORATE PERFORMANCE CORPORATE STRUCTURE CORPORATIONS DEBT DOWNSIZING ECONOMIES OF SCALE EMERGING MARKETS EMPLOYMENT ENTREPRENEURS ENTREPRENEURSHIP EXPANSION EXPECTED VALUE FINANCIAL DATA FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RATIOS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL SYSTEMS FIRM SIZE FIRMS FOREIGN MARKETS FUTURE RESEARCH GDP GDP PER CAPITA GROWTH RATE HIGHLY LEVERAGED FIRMS INCOME STATEMENTS INFLATION INTEREST RATES JOB CREATION LAWS LEGAL PROTECTION LIQUIDITY LISTED COMPANIES MACROECONOMIC GROWTH MEDIUM SIZE ENTERPRISES OWNERSHIP STRUCTURE PRESENT VALUE PRIVATE CAPITAL PRIVATIZATION PRODUCTION EFFICIENCY PRODUCTIVITY PROFITABILITY REGRESSION ANALYSIS RETAINED EARNINGS RETURN ON ASSETS RETURN ON EQUITY SHAREHOLDERS SMALL FIRMS SME SME DEVELOPMENT SME SECTOR STATE ENTERPRISES STRUCTURAL CHANGE SUBSIDIARIES TRANSITION ECONOMIES VENDORS WORKING CAPITAL GROWTH PATTERNS Klapper, Leora F. Sarria-Allende, Virginia Sulla, Victor Small- and Medium-Size Enterprise Financing in Eastern Europe |
| geographic_facet |
Europe and Central Asia |
| relation |
Policy Research Working Paper;No. 2933 |
| description |
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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Klapper, Leora F. Sarria-Allende, Virginia Sulla, Victor |
| author_facet |
Klapper, Leora F. Sarria-Allende, Virginia Sulla, Victor |
| author_sort |
Klapper, Leora F. |
| title |
Small- and Medium-Size Enterprise Financing in Eastern Europe |
| title_short |
Small- and Medium-Size Enterprise Financing in Eastern Europe |
| title_full |
Small- and Medium-Size Enterprise Financing in Eastern Europe |
| title_fullStr |
Small- and Medium-Size Enterprise Financing in Eastern Europe |
| title_full_unstemmed |
Small- and Medium-Size Enterprise Financing in Eastern Europe |
| title_sort |
small- and medium-size enterprise financing in eastern europe |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2002/12/2082429/small-medium-size-enterprise-financing-eastern-europe http://hdl.handle.net/10986/19200 |
| _version_ |
1764439742987894784 |