Access to finance and small enterprise growth:evidence from East Java

Michael A. McPherson and Jeffrey J. Rous ()
Additional contact information
Jeffrey J. Rous: University of North Texas, USA

Journal of Developing Areas, 2010, vol. 43, issue 2, 159-172

Abstract: The widespread acknowledgement of the centrality of micro and small businesses in the development process has led to a proliferation of projects and programs designed to assist and promote these businesses. This research examines the common assumption that access to credit from formal financial institutions is an important determinant of growth at the firm level. Our data are from a recent survey of 858 small businesses in East Java. We employ a full information maximum likelihood approach known as discrete factor method. The results indicate that access to credit is not a significant determinant of small firm growth; instead, other observable and unobservable characteristics of firms appear to cause growth.

Keywords: Micro and Small Enterprises; Credit; Growth (search for similar items in EconPapers)
JEL-codes: O1 O2 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://muse.jhu.edu/journals/journal_of_developing ... /43.2.mcpherson.html

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.43:year:2010:issue2:pp:159-172

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by Abu N.M. Wahid ().