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THE STATE OF SME’s ECONOMIC AND SOCIAL RATIONALITY

Author

Listed:
  • MONICA BIOLAN

    (The Bucharest Academy of Economic Studies, Faculty of Economics, Romania)

  • ILIE GAVRILA

    (The Bucharest Academy of Economic Studies, Faculty of Economics, Romania)

Abstract

The paper analyse the economic rationality of SMEs (Small and medium size enterprises) trough some pertinent indicators that revels the importance of SME for the employment market and for the entire economy. Despite their adaptability these entities have faced always different problems and the most noticeable has been the need of capital infusion. The paper proposes a new type of capital infusion in Romania: the private equity investment. We explore the venture investment mechanism and its implications at economic level for the SME. To identify the economic impact of venture capital, European preliminary figures provided by EVCA (European Venture Capital Association) will be analysed to determine if private equity capital represents a solution for capital infusion in SMEs.

Suggested Citation

  • Monica Biolan & Ilie Gavrila, 2010. "THE STATE OF SME’s ECONOMIC AND SOCIAL RATIONALITY," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    • Handle: RePEc:bbn:journl:2010_1_8_biolan
    as

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    File URL: http://tbs.ubbcluj.ro/RePEc/bbn/journl/2010_1_8_Biolan.pdf
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    References listed on IDEAS

    as
    1. Mills, David E & Schumann, Laurence, 1985. "Industry Structure with Fluctuating Demand," American Economic Review, American Economic Association, vol. 75(4), pages 758-767, September.
    2. Steven N. Kaplan & Antoinette Schoar, 2005. "Private Equity Performance: Returns, Persistence, and Capital Flows," Journal of Finance, American Finance Association, vol. 60(4), pages 1791-1823, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    economic rationality; social rationality; venture capital; SME;
    All these keywords.

    JEL classification:

    • D29 - Microeconomics - - Production and Organizations - - - Other

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