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Before and after the Crisis: A Look at the SMEs in Emerging Economies

Risk Management in Emerging Markets

ISBN: 978-1-78635-452-5, eISBN: 978-1-78635-451-8

Publication date: 29 December 2016

Abstract

The aim of this chapter is to understand effects of the recent crisis on the financial constraints that small and medium size enterprises have experienced in emerging economies. Using the firm level survey data provided by the World Bank, a descriptive analysis is conducted by calculating the average of the financial obstacles that the firms had experienced before and after the crisis, and the existence of statistical difference between the two periods is tested. The results indicate that the small and medium size enterprises suffer more from financial constraints relative to large firms. Financial constraints that the small and medium size firms had experienced are largely affected by the recent global financial crisis, relative to the large firms. However, effects of the financial constraints on real variables such as investment, innovation, and research and development expenditures cannot be examined due to data limitations. This chapter contributes to the limited literature of financial constraints experienced by the small and medium enterprises in emerging economies by taking the effect of the recent global financial crisis into account. The novelty of this chapter comes from the dataset: “The World Bank’s World Business Environment Surveys,” which provides a large sample of emerging countries.

Keywords

Acknowledgements

Acknowledgment

Elmas Yaldız Hanedar appreciates the financial support from Tubitak.

Citation

Hanedar, E.Y. and Hanedar, A.Ö. (2016), "Before and after the Crisis: A Look at the SMEs in Emerging Economies", Boubaker, S., Buchanan, B. and Nguyen, D.K. (Ed.) Risk Management in Emerging Markets, Emerald Group Publishing Limited, Leeds, pp. 683-700. https://doi.org/10.1108/978-1-78635-452-520161037

Publisher

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Emerald Group Publishing Limited

Copyright © 2016 Emerald Group Publishing Limited