Small Growth Firms, Venture Capital and Financial System Trends

Abstract

The turbulent decade of the 1980s completely restructured the financial system of the 1990s. Deregulation and rising competition led to record numbers of failures among depository institutions in the U.S., especially savings and loan associations. These failures have caused tremendous taxpayer losses, which are estimated at around $200 billion in present value terms. Financial markets became increasingly volatile, with increased price movements in bond, stock, and currency markets. These events triggered both public and private sector responses, including increased regulatory standards for safety and soundness and financial innovation. Additionally, the fall of communism in Eastern Europe and the former Soviet Union, now known as the New Independent States (NIS), as well as the trend toward trading blocks, including the continuing process of European unification and the North American Free Trade Agreement (NAFTA) between the U.S., Canada, and Mexico, have greatly increased the demand for growth capital in a global sense.

Citation

Kolari, J.W. (1994), "Small Growth Firms, Venture Capital and Financial System Trends", Managerial Finance, Vol. 20 No. 1, pp. 65-74. https://doi.org/10.1108/eb018461