A Research Note on the Theory of SME-Bank Relationships

Stefan P Bornheim and Thomas H Herbeck

Small Business Economics, 1998, vol. 10, issue 4, 327-31

Abstract: The goal of this paper was to develop a model which could help conceptualize the value and implication of a relationship between an SME (small- or medium-sized firm) and the respective bank(s). Based on an extensive literature review, this paper argues for a theoretical model, which assists in providing comprehension of the costs and benefits incurred with a relationship between a small- or medium-sized firm and a bank. The model seeks to explain theoretically these derived benefits and costs (barriers) and logically differentiate for distinct national environments, as well as portray these relationship costs and benefits over time. Copyright 1998 by Kluwer Academic Publishers

Date: 1998
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