publication . Article . Other literature type . Preprint . 1998

The Economics of Small Business Finance: The Roles of Private Equity and Debt Markets in the Financial Growth Cycle

Allen N. Berger; Allen N. Berger; Gregory F. Udell;
Open Access
  • Published: 01 Aug 1998 Journal: SSRN Electronic Journal (eissn: 1556-5068, Copyright policy)
  • Publisher: Elsevier BV
Abstract
We examine the economics of financing small business in private equity and debt markets. Firms are viewed through a financial growth cycle paradigm in which different capital structures are optimal at different points in the cycle. We show the sources of small business finance, and how capital structure varies with firm size and age. The interconnectedness of small firm finance is discussed along with the impact of the macroeconomic environment. We also analyze a number of research and policy issues, review the literature, and suggest topics for future research.
Subjects
free text keywords: Venture capital ; Small business, Economics and Econometrics, Small firm, Small business, business.industry, business, Economics, Debt, media_common.quotation_subject, media_common, Capital structure, Growth cycle, Venture capital, Interconnectedness, Private equity, Finance, Financial system, Private equity firm, Small business financing, Equity capital markets, Private equity fund, Corporate finance, Private equity secondary market
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