Alternative Financing of Small and Medium Businesses: Experience of Foreign Countries

Author:

Pin'koveckaya Yuliya1

Affiliation:

1. Ul'yanovskiy gosudarstvennyy universitet

Abstract

Small and medium enterprises play an important role in modern national economies. However, many of these enterprises experience difficulties in attracting the necessary investments for operation and further development. Personal finances are usually not enough to solve all problems, especially in crisis conditions. Bank loans are not available for most small and medium businesses because of small fixed assets, poor credit history, and incomplete reporting. As foreign experience shows, alternative forms and methods of obtaining the necessary funds can be an effective way to increase the financing of such enterprises. This review article examines the experience gained in recent years in using alternative financing. This experience is relevant for the current domestic entrepreneurship. Factoring, order financing, warehouse receipts, leasing, trade credit, and crowdfunding proved to be the main alternative financing tools. For each of these financial instruments, the article gives brief characteristics, advantages and disadvantages, requirements for regulatory support, and related types of activities. The research results can help entrepreneurs who have difficulties in financing their production and sale, especially beginners. The results obtained can be used by government authorities to form a policy to improve access of business structures to working capital and investment in Russia and its regions.

Publisher

Kemerovo State University

Subject

Applied Mathematics,General Mathematics

Reference77 articles.

1. Decker R., Haltiwanger J., Jarmin R., Miranda J. The role of entrepreneurship in US job creation and economic dynamism // Journal of Economic Perspectives. 2014. Vol. 28. No. 3. P. 3–24. DOI: 10.1257/jep.28.3.3, Decker R., Haltiwanger J., Jarmin R., Miranda J. The role of entrepreneurship in US job creation and economic dynamism. Journal of Eco-nomic Perspectives, 2014, 28(3): 3–24. DOI: 10.1257/jep.28.3.3

2. Pinkovetskaia Iu. S., Lyubovtseva E. G., Arbeláez-Campillo D. F., Rojas-Bahamón M. J. Small and medium enterprises in Russia and other countries // Amazonia Investiga. 2020. Vol. 9. No. 25. P. 99–106., Pinkovetskaia Iu. S., Lyubovtseva E. G., Arbeláez-Campillo D. F., Rojas-Bahamón M. J. Small and medium enterprises in Russia and other countries. Amazonia Investiga, 2020, 9(25): 99–106.

3. Litan R. E., Schramm C. J. Better capitalism: renewing the entrepreneurial strength of the American economy. New Haven: Yale Universi-ty Press, 2012. 263 p., Litan R. E., Schramm C. J. Better capitalism: renewing the entrepreneurial strength of the American economy. New Haven: Yale University Press, 2012, 263.

4. Wiklund J., Shepherd D. A. Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized busi-nesses // Strategic Management Journal. 2003. Vol. 24. No. 13. Р. 1307–1314. DOI: 10.1002/smj.360, Wiklund J., Shepherd D. A. Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized busi-nesses. Strategic Management Journal, 2003, 24(13): 1307–1314. DOI: 10.1002/smj.360

5. Obi J., Ibidunni A. S., Tolulope A., Olokundun M. A., Amaihian A. B., Borishade T. T., Fred P. Contribution of small and medium enter-prises to economic development: evidence from a transiting economy // Data in Brief. 2018. Vol. 18. Р. 835–839. DOI: 10.1016/j.dib.2018.03.126, Obi J., Ibidunni A. S., Tolulope A., Olokundun M. A., Amaihian A. B., Borishade T. T., Fred P. Contribution of small and medium enter-prises to economic development: evidence from a transiting economy. Data in Brief, 2018, (18): 835–839. DOI: 10.1016/j.dib.2018.03.126

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3