Regional and spatial issues in the financing of small and medium-sized enterprises and new ventures

Abstract

This editorial introduces the papers addressing regional and spatial aspects relating to the demand for, and the supply of, finance for small and medium-sized enterprises (SMEs) and start-ups. Reflecting the breadth of financial instruments that are potentially available to SMEs and new ventures (e.g., business angel, bank credit and credit card financing), this special issue offers a combination of up-to-date studies that integrate the regional and spatial perspectives into the debate on SMEs and start-up financing. Overall, the papers contribute to an understanding of the mechanisms by which geography shapes access to finance for SMEs and new ventures, and the implications for local economic activity. KEYWORDS small and medium-sized enterprises (SMEs); new ventures; finance; geography JEL G2, R1 HISTORY

The shadow of the Pithead: Understanding social and political attitudes in former coal mining communities in the UK

“…Increased spatial and individual inequality are related to changes in economic demand and employed technologies, which affect the relative productivity of, and demand for, unevenly distributed occupations, and the impact of globalisation in supply chains and consequent increases in trade and competition (Rodrik, 2018). The resulting concentration of economic mass, political power and (arguably) institutional competence in more successful places then constrains the spatial 'level playing field, making unevenness embedded and poverty 'sticky'' (Myrdal, 1957;Jones, 2015;Ughetto et al, 2019;see McCann, 2016 for a comprehensive review of the UK case). The local plight of such places in driving individual 'discontent' with current socio-economic settlement has been increasingly recognised; for example Dijkstra et al (2020) find it the dominant factor in driving anti-EU sentiment across the bloc.…”

Place-based entrepreneurs and their competitiveness: a relational perspective on small regional banks

“…Such relationships tend to be persistent; for example, Elsas (2005) shows that an increase in market competition strengthens the housebank relationships. Moreover, the global financial and economic crisis in the past decade has given proof that stable housebank relationships are beneficial to companies because housebanks are more open, in such situations, to loan granting than other types of banks (Ughetto et al 2019;Hasan et al 2019;G€ artner 2009).…”

The Shadow of the Pithead: Understanding Social and Political Attitudes in Former Coal Mining Communities in the UK

“…Increased spatial and individual inequality are related to changes in economic demand and employed technologies, which affect the relative productivity of, and demand for, unevenly distributed occupations, and the impact of the globalisation in supply chains and consequent increases in trade and competition (Faggian et al, 2019;Rodrik, 2018). The consequential concentration of economic mass, political power (and arguably institutional competence), and financial services serving firms in more successful places then destroys the spatial 'level playing field, making unevenness embedded and poverty 'sticky'' (Myrdal, 1957;Jones, 2015;Ughetto et al, 2019;see McCann, 2016 for a comprehensive review of the UK case). The local plight of such places in driving individual 'discontent' with current socio-economic settlement has been increasingly recognised; for example Dijkstra et al (2020) find it the dominant factor in driving anti-EU sentiment across the bloc.…”