 Financial support for micro and small enterprises: Economic benefit or social responsibility?Bing Xu, Ricardo Costa-Climent, Yanyan Wang and Yuan Xiao Journal of Business Research, 2020, vol. 115, issue C, 266-271 Abstract: Regarding the financial support provided to micro and small enterprises (MSEs), deciding whether to prioritize economic benefit or social responsibility is a crucial policy choice, especially in developing countries. This paper establishes a new research framework for density of enterprise output value and wages conditional on loans to balance economic benefit (sales revenue) and social responsibility (employee payroll). Using data on 9125 Chinese enterprises from January 2015 to December 2017, this paper shows that loans have a range effect on sales revenue and employee payroll, which ascends gradually to a plateau and eventually descends. Based on this finding, this paper proposes a reallocation scheme. With total loans unchanged, fixed sales revenue can increase employee payroll by 3.8%. Similarly, fixed employee payroll can increase sales revenue by 5.2%. This study not only provides empirical evidence for financially supporting MSEs, but also provides alternative decision support for policy design. Keywords: Financial support; Micro and small enterprises (MSEs); Conditional density; Reallocation scheme; Economic benefit; Social responsibility (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:115:y:2020:i:c:p:266-271 DOI: 10.1016/j.jbusres.2020.01.071 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.