Abstract

While small and medium-sized enterprises (SMEs) are important for economic growth and employment, they face numerous obstacles in accessing external finance. In this article, we review recent developments in the availability of financing for SMEs in Brazil, focusing on the greater use of equity and debt for SMEs. In assessing the barriers to external financing, we focus on the role of bank characteristics, market structure and variations of interest rate spreads across banks and time. Moreover, as banks retreat from SME financing, we examine the potential for SMEs to seek new sources of financing from private equity and venture capital funds. We examine the changes in the availability of bank loans between 2014 and 2016. By considering demand, we estimate the SME loan gap based on Central Bank and publicly available data. Our results show that the loan gap in Brazil is substantial.

Details

Title
The Financing of Small and Medium-Sized Enterprises: An Analysis of the Financing Gap in Brazil
Author
Marcelo Godke Veiga 1 ; McCahery, Joseph A 2 

 Tilburg University Law School, Tilburg Law and Economics Center (TILEC), Tilburg, The Netherlands; Fundação Armando Álvares Penteado (FAAP), São Paulo, Brazil; Insper-Instituto de Ensino e Pesquisa, São Paulo, Brazil; CEU Law School, São Paulo, Brazil; University of São Paulo, São Paulo, Brazil 
 Tilburg University Law School, Tilburg Law and Economics Center (TILEC), Tilburg, The Netherlands 
Pages
633-664
Publication year
2019
Publication date
Dec 2019
Publisher
Springer Nature B.V.
ISSN
15667529
e-ISSN
17416205
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
2319669967
Copyright
European Business Organization Law Review is a copyright of Springer, (2019). All Rights Reserved., © 2019. This work is published under http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.