Financial Distress, Employees’ Welfare and Entrepreneurship Among SMEs

John Inekwe

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2016, vol. 129, issue 3, No 10, 1135-1153

Abstract: Abstract The study predicts ex-ante financial distress in small and medium-sized enterprises (SMEs) and examines its significance in entrepreneurial activity. Thus, the study provides the dynamic characterization of the link between financial distress, employment and the growth in the establishment of SMEs. The study further examines employees’ welfare and financial distress of SMEs. The results reveal that financial ratios and market variables are significant in predicting financial distress risks. In the wake of financial distress, the results reveal contractions in the growth of SMEs. In addition, financial distress in SMEs induces an adverse effect on the level of employment and a reduction in employees’ welfare.

Keywords: Entrepreneur; Financial distress; Clogit; SMEs (search for similar items in EconPapers)
JEL-codes: F23 L25 L26 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:spr:soinre:v:129:y:2016:i:3:d:10.1007_s11205-015-1164-6

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DOI: 10.1007/s11205-015-1164-6

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