Innovative Instruments for SME Financing in Romania - a New Proposal with Interesting Implications on Markets and Institutions

Boșcoianu, Mircea; Prelipean, Gabriela; Calefariu, Emilia; Lupan, Mariana

doi:10.1016/s2212-5671(15)01388-x

Cited by 7 publications

(4 citation statements)

References 58 publications

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“…The entrepreneurial spirit and innovation emerge in new approaches to learning, living, and working. For the incorporation of entrepreneurship and innovation [33], transdisciplinary approaches, and interactive teaching methods in education, different…”

Section: The Role Of Institutions In Fostering Entrepreneurshipmentioning

confidence: 99%

Entrepreneurship in Emerging Economies: The Role of Innovation and Institutions

Prelipcean¹,

Ungureanu²

2023

Entrepreneurship - New Insights

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Economists anticipate the future of the economy based on objective analysis, but for these forecasts to be taken into consideration by the economic environment, they must be founded on knowledge of the processes that drive rational expectations and opportunity decision-making. Due to these factors, the chapter we propose examines the emergence of these opportunities as a consequence of economic progress occurring primarily in innovation-based economies. Firstly, entrepreneurial opportunities are significantly influenced by innovation, as a result of both the numerous inventions produced by local entrepreneurs in developing economies and the entrepreneurial practices of those in advanced economies, where innovative concepts are generated and then exported to emerging economies to be implemented in particular local environments. Secondly, there are several different circumstances in which entrepreneurs innovate. A significant focus has been given to the SME sector over the last decade since it dominates emerging economies and contributes to development, but not to its maximum potential due to unique innovation challenges; lastly, strong institutional environments and efficient innovation systems are required to generate opportunities since they have a significant impact on entrepreneurs’ innovative behavior and assist in explaining why individuals with basically similar characteristics act differently in various contexts.

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Section: The Role Of Institutions In Fostering Entrepreneurshipmentioning

confidence: 99%

Entrepreneurship in Emerging Economies: The Role of Innovation and Institutions

Prelipcean¹,

Ungureanu²

2023

Entrepreneurship - New Insights

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“…SMEs are facing numerous difficulties worldwide. Empirical studies have highlighted that access to finance represents one of the most significant challenges for SMEs' entrepreneurs (Beck et al, 2008;Rupeika-Apoga, 2014;Boscoianu et al, 2015;Hunjra, 2011). Helmut and Frank Lang stated that even at a time of economic boom, the smallest enterprises often experience securing financing.…”

Section: Smes and Access To Financementioning

confidence: 99%

“…It will allow the government to act as a strategic partner for the banks in its financing distribution to SMEs. Boscoianu et al (2015) has researched a hybrid solution for SME financing in Romania and introduced an innovative type of Hybrid solution for SMEs named as VCF/PEF-PPP. It is a creative mix of private management and government support.…”

Section: Build National Credit Rating Agencies For Smesmentioning

confidence: 99%

Financial Innovations for SMEs in Sri Lanka

2020

JESD

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In Sri Lanka, SMEs play a significant role and are more constrained by different obstacles, and limited access to finance is a significant problem. The purpose of this paper was to investigate financial innovations to develop SMEs in Sri Lanka. The study was based on primary and secondary sources. Primary data were from SMEs' owners or managers gathered by using survey methods. The sample comprised 63 SMEs in Sri Lanka operating different kind of industries. The finding reveals that commercial banks' loans are the most critical source of SME financing, even though the SME has many difficulties in dealing with banks. Leasing financing and loans from other financial institutions are less important than other financial sources. Equity financing, venture capital, and factoring are uncommon among SMEs in Sri Lanka. Indeed, there was evidence that SMEs in Sri Lanka still preferred to use traditional financing sources instead of innovative financial sources. Furthermore, SMEs do not have sufficient knowledge about innovative financial authorities, and financial institutions fail to provide adequate support for SMEs. Promoting programs to develop managerial and IT skills for SMEs, establishing particular banks for SMEs related to the small community, and other financial such as factoring and venture capital can be developed to reduce SMEs' financing problem in Sri Lanka.

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“…The specific conditions refer in fact to the inefficiencies specific to the market category in which Romania belongs, namely frontier market, but with real perspectives to skip to another status, namely emerging market. Progress has been made in terms of legislative issues, but the Romanian alternative fund industry does not harmonize well enough either with investors (especially retail) or with entrepreneurs seeking long-term financing (Boscoianu et al, 2015). In order to remedy this situation, not only alternative investment fund managers, but all stakeholders, authorities, managers of companies interested in financing and investors should participate.…”

Section: Introduction To the Issue Of Venture Capital Funds Vcf -The mentioning

confidence: 99%

Aspect Regarding the Design of Active Strategies for Venture Capital Financing – the Flexible Adjustment for Romania as a Frontier Capital Market

Prelipcean

Boșcoianu

2019

SSRN Journal

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Industry 4.0 revolution find a real interest of entrepreneurs but in the case of frontier and emerging markets it is difficult to find a reliable source of long-term financing. The decoupling of the technological evolution from the evolution of the access to financing capacities must be analysed from different point of view (financial, legislative, socio-technical). In Romania, as a frontier market there are only few alternative investment solutions capable to respond to the long-term financing demand of performant projects. The main interest is to understand the strategies for adaptation of venture capital fund (VCF) at real conditions. Venture capital funds (VCF) represents a particular form of private equity investments, scale down and more focused on innovative start-up (or even expansions on technology or markets) projects (the typical value is 10 mil Euro). This form of investments is a personalized response to the general problem related to the actors that do not have tangible assets for collaterals and / or cannot demonstrate the ability to make a profit. In the case of VCF, as a vehicle oriented on innovation and technology, the business plan represents the main element for project portfolio selection in the context of matching the interests of investors with the interests of financed firm's managers. This contribution is especially important for the case of frontier and emerging markets characterized by additional restrictions (access to strategies, liquidity problems, and agency costs beyond a simple monitoring). For Romania, it is essential to adapt VCF investors' objectives to all phases (selection, evaluation, contract signing and restructuring, progress monitoring, stimulating value-added and, especially, closing the VCF cycle) to real conditions and considering the performance indicators balancing with the value creation mechanisms specific of industry 4.0.

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Innovative Instruments for SME Financing in Romania - a New Proposal with Interesting Implications on Markets and Institutions

Cited by 7 publications

References 58 publications

Entrepreneurship in Emerging Economies: The Role of Innovation and Institutions

Entrepreneurship in Emerging Economies: The Role of Innovation and Institutions

Financial Innovations for SMEs in Sri Lanka

Aspect Regarding the Design of Active Strategies for Venture Capital Financing – the Flexible Adjustment for Romania as a Frontier Capital Market

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