Finance and growth : Dutch independent SMEs

This paper studies the effect of financing methods on growth of Dutch independent SMEs. It analyzes the effect of internal and external financing on growth using multiple regressions model accounting for various control variables. How growth is financed during financial crisis years and after the crisis years is investigated. The results show that growth is apparent in the years during the crisis years (2009-2012) and practically non-existent during the post crisis years (2013-2015). However, access to finance is available during both periods and it is found that Dutch independent SMEs finance their growth during the crisis according to the pecking order theory.