Informational intermediation: a tool to assess SMEs’ ability to access financing

What is it about?

Purpose : This text aims at highlighting a typology of small firms which, beyond those resting upon size or industry, allows to distinguish the quality of firms according to their internal organization and the type of market on which they act with the objective to reduce the capital gap and credit rationing. Design/methodology/approach : Based on global approach using qualitative and quantitative data. Findings : Still at the experimental stage, this method of evaluating the capacity of small businesses to raise financing from their various outside partners could in time offer an instrument that, if widely used, might enhance the transparency of small businesses and thereby improve their positioning and their chances for survival. Research limitations/implications: The research is at a early stage and nead to be validate empirically. Originality/value : While this paper describes a method of evaluating a policy used in France for helping SMEs, its broader purpose is to show how such a tool can serve to target assistance and financing to small businesses more effectively

Featured Image