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Analytical Issues in External Financing Alternatives for SBEs
Authors:Scholtens  Bert
Affiliation:(1) Department of Economics, University of Amsterdam, Roetersstraat 11, 1018 WB Amsterdam, The Netherlands
Abstract:As the amount of information about an enterprise is generally not neutral with respect to firm size, financiers have problems to identify the default risk associated with a borrower or to have control over a borrower's investments. This review paper analyses how various control mechanisms are fit to reduce this information problem and how various types of capital suppliers are endowed to finance small business enterprises.
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