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Review of Economic Perspectives

Národohospodárský obzor; The Journal of Masaryk University

4 Issues per year


CiteScore 2016: 0.50

SCImago Journal Rank (SJR) 2016: 0.262
Source Normalized Impact per Paper (SNIP) 2016: 0.516

Open Access
Online
ISSN
1804-1663
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Volume 17, Issue 3 (Sep 2017)

Issues

Determinants of SME Finance: Evidence from Three Central European Countries

Ashiqur Rahman
  • Corresponding author
  • Department of Enterprise Economics, Tomas Bata University in Zlin, Mostni 5139, 76001 Zlin, Czech Republic.
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  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ M. Twyeafur Rahman
  • Department of Economics, Strathclyde Business School, 130 Rottenrow, G4 0QU, Glasgow, United Kingdom of Great Britain and Northern Ireland.
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ Jaroslav Belas
  • Department of Enterprise Economics, Tomas Bata University in Zlin, Mostni 5139, 76001 Zlin, Czech Republic.
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
Published Online: 2017-09-23 | DOI: https://doi.org/10.1515/revecp-2017-0014

Abstract

This paper explores the determinants of access to finance for small and medium enterprises (SMEs) in the context of three Central European countries: Czech Republic, Slovak Republic, and Hungary. The data set of the research is obtained from the BEEPS survey, which is conducted by the World Bank and the European Bank for Reconstruction and Development. This paper empirically analyses firms not only from the SMEs point of view, but also shows results for micro, small and medium enterprises separately. Additionally, we have analysed the determinants of access to finance for SMEs at each country level for an in-depth understanding of country-level variations in SME financing. The results indicate that micro firms and firms owned and operated by women are experiencing a shortage of credits from banks. On the other hand, we found a positive relationship between the pledge of collateral and access to finance. With respect to the medium firms, we found evidence that innovative firms have a larger amount of credit from banks. The empirical results also suggest that the loan size increases as the interest rates increase in particular for SMEs on the whole and for micro-firms, although the interest rate is in a negative relationship with the loan size in Czech Republic.

Keywords: Access to finance; SMEs; Czech Republic; Slovak Republic; Hungary

JEL Classification: G21; O16

References

About the article

Received: 2017-01-30

Accepted: 2017-08-18

Published Online: 2017-09-23

Published in Print: 2017-09-01


Citation Information: Review of Economic Perspectives, ISSN (Online) 1804-1663, DOI: https://doi.org/10.1515/revecp-2017-0014.

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© 2017 Ashiqur Rahman et al., published by De Gruyter Open. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. BY-NC-ND 3.0

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