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Entrepreneurship and Sustainability Issues Open Access
Scopus - coverage starting with 2017 material
Received: 2017-06-16  |  Accepted: 2018-01-16  |  Published: 2018-03-30

Title

The impact of credit availability on small and medium companies


Abstract

Existing research proves that companies' access to bank loans or other external sources of financing for business development is one of the defining factors of the survival and development of a company on the market. This is all the more important in the case of small and medium-sized companies, knowing that they face a series of difficulties in obtaining financing from banking institutions, especially due to an insufficient amount of information needed provided to banks and needed by them to analyze the opportunity for a loan. However, as the economic and financial conditions of a company are better, the more information is available to banks and the credit availability is higher. By this research we analyse the factors affecting the credit availability and their influence on development of Polish small and medium companies, such as company’s size and age, financial results or the length of relationship with the banking institution, as well as the features characterizing the banking sector. The results demonstrate that in Poland, similarly to other European countries, small and medium companies have a more limited access to credit availability than large companies. Moreover, a significant dependence of bank credit availability from the size of the company, liquidity, profitability and the situation in the banking sector was demonstrated.


Keywords

credit availability, Small and medium-sized enterprises (SMEs), banking sector


JEL classifications

G21 , G31


URI

http://jssidoi.org/jesi/article/168


DOI


HAL


Pages

565-580


Funding


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Włodarczyk, Bogdan
University of Warmia and Mazury in Olsztyn, Olsztyn, Poland http://www.uwm.edu.pl
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Szturo, Marek
University of Warmia and Mazury in Olsztyn, Olsztyn, Poland http://www.uwm.edu.pl
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Ionescu, George H.
Romanian-American University, Bucharest, Romania https://www.rau.ro
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Firoiu, Daniela
Romanian-American University, Bucharest, Romania https://www.rau.ro
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Pirvu, Ramona
University of Craiova, Craiova, Romania http://www.ucv.ro
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Badircea, Roxana
University of Craiova, Craiova, Romania http://www.ucv.ro
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Journal title

Entrepreneurship and Sustainability Issues

Volume

5


Number

3


Issue date

March 2018


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 389  |  PDF downloads: 265

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