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Romanian SMEs Financing Options: An Empirical Analysis

Author

Listed:
  • Ioan E. Nistor

    (Babes-Bolyai University Faculty of Economics and Business Administration)

  • Daniela-Rodica Popescu

    (Babes-Bolyai University Faculty of Economics and Business Administration)

Abstract

One of the most pressing problems faced by micro, small and medium sized enterprises (henceforth SMEs) in Europe is the access to sufficient funds to sustain their long term growth. Romanian SMEs make no exception. In this context the present paper focuses on analyzing the extent to which external funding sources have contributed to the value added created by the Romanian SMEs between 2007 and 2011.The investigation’s results indicate the existence of a causal link between some forms of external financing (namely bank loans, leasing, factoring, guarantee products and European funds) and the value added created by the Romanian micro, small and medium sized enterprises in the aforementioned period.

Suggested Citation

  • Ioan E. Nistor & Daniela-Rodica Popescu, 2013. "Romanian SMEs Financing Options: An Empirical Analysis," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(15), pages 12-21, December.
    • Handle: RePEc:aio:fpvfcf:v:1:y:2013:i:15:p:12-21
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    File URL: http://feaa.ucv.ro/FPV/015-002.pdf
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    References listed on IDEAS

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    10. Abubakr Saeed, 2009. "Formality Of Financial Sources And Firm Growth: Empirical Evidence From Brazilian Smes 1990-2005," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 1(2 (Octobe), pages 129-140.
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    Cited by:

    1. Esho, Ebes & Verhoef, Grietjie, 2018. "The Funding Gap and the Financing of Small and Medium Businesses: An Integrated Literature Review and an Agenda," MPRA Paper 90153, University Library of Munich, Germany, revised 21 Nov 2018.
    2. Ștefan Cristian Gherghina & Mihai Alexandru Botezatu & Alexandra Hosszu & Liliana Nicoleta Simionescu, 2020. "Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation," Sustainability, MDPI, vol. 12(1), pages 1-22, January.

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    More about this item

    Keywords

    micro; small; medium sized enterprises; bank loans; leasing; factoring; microcredit; European Funds; created value added;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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