The Netherlands and their SMEs – Evidence for the impact of the global financial crisis on the access to external financing

Gondzik, A. (2015) The Netherlands and their SMEs – Evidence for the impact of the global financial crisis on the access to external financing.

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Abstract:SMEs and their access to external finance have long been of concern among politicians and the academic society. Since the global financial crisis of 2008 hit, the European Commission and the Dutch government developed various financial instruments to support SMEs in order to mitigate the impact of the crisis and boost their investments for a fast recovery. While many scholars have found evidence for financial constraints among SMEs from separate European countries, the Dutch SME sector was not yet part of an individual investigation. The findings of this study indicate that the only indicators of a financially constraint status of Dutch SMEs in the sample are the firm’s growth development and their profitability state as they were found to be statistically and economically significant in predicting a firm’s level of investment. However, against the expectation, Dutch SMEs appeared to not invest less during the crisis showing that the crisis did not provide a negative exogenous credit supply shock as it was found to be the case among other countries in the European Union. Dutch policy makers at the government level are encouraged to revaluate their interventions regarding the mitigation of financial constraints of SMEs in the Netherlands.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/67279
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