THE ROLE OF LOAN AND GUARANTEE FUNDS IN FILLING THE FUNDING GAP FOR SMALL AND MEDIUM-SIZED ENTERPRISES

Halina Waniak-Michalak
Additional contact information
Halina Waniak-Michalak: University of Lodz

Financial Internet Quarterly, 2017, vol. 13, issue 4, 127-135

Abstract: Research background. The analysis of the funding gap for SMEs and loan and guarantee funds’ capability to fill this gap has been undertaken to assess the instruments used in Poland which are focused on the development of entrepreneurship. Methodology/methods. The funding gap for small and medium-sized enterprises is measured with the method of unfulfilled demand for funding and unawarded funding. The size of the gap is compared to the potential amount of the guarantees and loans granted by non-bank organisations in Poland dependent on the amount of capital held. Purpose of the article. The purpose of the article is to answer the research question of whether guarantee and loan funds in Poland play a significant role in filling the funding gap for small and medium-sized enterprises Findings & Value added Guarantee and loan funds are not able to fill the equity gap of SMEs in Poland due to low capital resources compared with needs, and an insufficient number of institutions offering non-bank funding. Also, the high risk attributed to loans granted to small and medium- -sized entrepreneurs influences the low degree of utilisation of the capital already held, both by loan and guarantee funds. The unutilised capital is deposited in bank accounts and does not lead to the increase of the multiplier effect. The analysis concerns the specificity of the support system for SMEs in Poland and cannot be generalised to systems in other countries. However, the conclusions from the conducted analysis and the methodology of calculation of the equity gap may serve other researchers as a basis for creating their own theses and research hypotheses.

Keywords: small and medium-sized enterprises; loan; guarantee; funds; financing (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.wsiz.edu.pl/fiq/article/view/680 Abstract page (text/html)
https://journals.wsiz.edu.pl/fiq/article/download/680/641 Full text (application/pdf)

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:wsz:fiq000:v:13:y:2017:i:4:id:680

DOI: 10.1515/fiqf-2016-0041

Access Statistics for this article

More articles in Financial Internet Quarterly from University of Information Technology and Management in Rzeszów
Bibliographic data for series maintained by Wiesław Stręciwilk ().