Financing entrepreneurship in different regions: The failure to decentralise financing to regional centres in Sweden
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 18 May 2010
Abstract
Purpose
The purpose of the paper is to analyse the financial search behaviour of small and medium‐sized enterprises (SMEs) in different regions and the perceived importance of different external financiers for these firms.
Design/methodology/approach
A postal survey targeting the chief executive officers (CEOs) of 459 SMEs was distributed in different regions of Sweden.
Findings
Large differences exist in the financial search behaviour exhibited by firms in the four different types of regions. In the metropolitan areas, firms are more active in searching for new owners, especially professional investors. In smaller municipalities, banks dominate as the most important financier.
Research limitations/implications
The study might not be generalised for other settings because it was carried out in Sweden. Furthermore, the regional types used might cause some concern as to whether the findings can be generalised.
Practical implications
The study provides evidence that policies need to be tailor‐made for different regions because the predominant type of financier differs greatly between regions. The findings also emphasise the need for policymakers to focus on equity gap issues in regional centres.
Originality/value
The paper fulfils an important role in elaborating on the use and importance of different types of financing in various regions.
Keywords
Citation
Berggren, B. and Silver, L. (2010), "Financing entrepreneurship in different regions: The failure to decentralise financing to regional centres in Sweden", Journal of Small Business and Enterprise Development, Vol. 17 No. 2, pp. 230-246. https://doi.org/10.1108/14626001011041238
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited