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SMEs’ Perceptions of Availability of External Finance

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  • Florian Horky

    (National Bank of Slovakia)

Abstract

Our aim in this study is to investigate how SMEs perceive and expect the availability of bank loans, credit lines, and trade credits. Our findings highlight that past experiences and changing demands for financing are significant drivers in shaping both past perceptions and future expectations. Behavioral factors such as loss aversion and rational inattention play a crucial role in influencing managerial decisions. We use data from the semi-annually conducted Survey on the Access to Finance of Enterprises. The data covers the time-period from April 2014 to September 2022. Insights from our findings help explain the persistent low credit dynamics observed since the financial crisis and suggest similar trends may follow the current economic disruptions. Our results underscore the importance of considering behavioral elements and past experiences in designing effective monetary policies to support SMEs’ access to finance.

Suggested Citation

  • Florian Horky, 2024. "SMEs’ Perceptions of Availability of External Finance," Working and Discussion Papers WP 11/2024, Research Department, National Bank of Slovakia.
    • Handle: RePEc:svk:wpaper:1115
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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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