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Analytical Issues in External Financing Alternatives for SBEs

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Abstract

As the amount of information about an enterprise is generally not neutral with respect to firm size, financiers have problems to identify the default risk associated with a borrower or to have control over a borrower's investments. This review paper analyses how various control mechanisms are fit to reduce this information problem and how various types of capital suppliers are endowed to finance small business enterprises.

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Authors and Affiliations

  1. Department of Economics, University of Amsterdam, Roetersstraat 11, 1018 WB, Amsterdam, The Netherlands

    Bert Scholtens

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  1. Bert Scholtens
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Scholtens, B. Analytical Issues in External Financing Alternatives for SBEs. Small Business Economics 12, 137–148 (1999). https://doi.org/10.1023/A:1008045531070

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