The Relationship between U.K. Banks and Their Small Business Customers

Martin R Binks and Christine T Ennew

Small Business Economics, 1997, vol. 9, issue 2, 167-78

Abstract: Much emphasis is placed upon the benefits to both parties of a 'good' relationship between banks and their small business customers. Having explained the significance of SMEs in the U.K. Economy, the papers goes on to consider, briefly, some of the arguments which underpin the rationale for these relationships. The roles of information and communication are discussed and the poor coordination between banks, SMEs and their accountants is highlighted. Evidence from over 6,000 small businesses in response to the Forum of Private Business survey in 1994 is then presented. This demonstrates the strong positive association between more participative relationships and more positive perceptions of their banks by firms. Finally it is suggested that a virtuous circle of information and communication could be established if the parties cooperate in a systematic process of risk assessment. Copyright 1997 by Kluwer Academic Publishers

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://journals.kluweronline.com/issn/0921-898X/contents link to full text (text/html)
Access to full text is restricted to subscribers.

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:kap:sbusec:v:9:y:1997:i:2:p:167-78

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2

Access Statistics for this article

Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch

More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().