ERC Financing Growth
6
Stuart Fraser Warwick Business School [email protected] Mike Wright Imperial College Business School [email protected] Financing Growth
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ERC Conference Presentation. Financing Growth- Stuart Fraser / Mike Wright
Transcript of ERC Financing Growth
Stuart FraserWarwick Business School
Mike WrightImperial College Business School
Financing Growth
Why does finance matter?
20%
42%
16%
54%
20%
2%
6%
<1%
59%
18%
8%
18%
7%
2% 1%<1%
0%
2%
4%
3%4%
6%
3%
21%
0%
5%
10%
15%
20%
25%
0%
10%
20%
30%
40%
50%
60%
70%
2008 % using 2013 % using 2008 Sales growth (% pa)
?
Sources:UK Survey of SME Finances (2008)SME Finance Monitor (2013)
Seekers and non-seekers
Discouraged borrowers
c. 200K firmsSmaller/younger firms + less experienced/wealthy ownersHigher growth ambitions
Seekersc. 600K firmsLarger/older firms + more experienced/ wealthy owners7/10 applications successfulHigher growth ambitions
Unhappy non-seekers
?
'Happy' non-seekers
c. 4m firms
Similar to seekers but a bit smallerLower growth ambitions
Perceptions
Needs
Misperceptions
2008 2011 2012 2013
UKSMEF SMEFM
69.6%
63.2% 60.9%62.9%
78.4%75.0% 73.4%
71.3%
Perceived success probability Actual success probability
Falling needs
2008 2011 2012 2013
UKSMEF SMEFM
35.9%
20.3%19.3%
18.3%
Loan needs
A word (or two) of warning…
Funding gaps
