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Are small innovators credit rationed?

Freel, M. (2007) Are small innovators credit rationed? Small Business Economics, 28 (1). pp. 23-35. ISSN 0921-898X

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Abstract

Drawing upon a sample of 256 small firms who applied for bank loans, the current paper is concerned with the extent to which 'innovativeness' is associated with a lower level of loan application success. The paper records the proportion of loan successfully applied for and estimates a series of tobit models utilising a number of proxy measures for innovation (in terms of inputs, outputs, and commercial significance to the firm) and incorporating standard controls. In general, the models suggest (as anticipated) that the most innovative firms are less successful in loan markets than their less innovative peers - though there is some variation by proxy. Moreover, there is tentative evidence that 'a little innovation may be a good thing'.

Item type: Article
ID code: 8851
Keywords: entrepreneurship, innovations, small businesses, business, Commerce
Subjects: Social Sciences > Commerce
Department: Strathclyde Business School > Hunter Centre For Entrepreneurship
Related URLs:
    Depositing user: Strathprints Administrator
    Date Deposited: 16 Sep 2009 15:49
    Last modified: 12 Mar 2012 10:50
    URI: http://strathprints.strath.ac.uk/id/eprint/8851

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