Small-Business Financing after the Financial Crisis: Lessons from the Literature

Stephen Matteo Miller, Adam Hoffer, David Wille, "Small-Business Financing after the Financial Crisis – Lessons from the Literature", Journal of Entrepreneurship and Public Policy, Vol. 6.3, 315-339, DOI: 10.1108/JEPP-D-17-00005

Mercatus Working Paper, Mercatus Center at George Mason University, Arlington, VA, August 2016

49 Pages Posted: 25 Aug 2016 Last revised: 3 Dec 2018

See all articles by Stephen Matteo Miller

Stephen Matteo Miller

George Mason University - Mercatus Center

Adam J. Hoffer

University of Wisconsin - La Crosse

David Wille

George Mason University

Date Written: August 23, 2016

Abstract

We survey the literature on how small businesses in the United States finance themselves. Our results demonstrate the important role that the financial services industry, particularly bank credit, plays in the capital structure of small firms. The results also reinforce the importance of owner equity as a primary source of financing. In addition, we find that small firms have been seeking and obtaining less capital since the 2008 financial crisis. Our findings about the main sources of small-business financing will be informative when formulating financial regulation. The available evidence suggests that new regulation of the financial services industry may be restricting access to products that small-business owners rely on and may adversely affect small banks.

Keywords: Finance, Financial Crisis, Financial Service, Bank Lending, Borrowing, Credit, Debt, Capital Structure, Financing, Regulation, Policy, Small Business

JEL Classification: G32

Suggested Citation

Miller, Stephen Matteo and Hoffer, Adam J. and Wille, David, Small-Business Financing after the Financial Crisis: Lessons from the Literature (August 23, 2016). Stephen Matteo Miller, Adam Hoffer, David Wille, "Small-Business Financing after the Financial Crisis – Lessons from the Literature", Journal of Entrepreneurship and Public Policy, Vol. 6.3, 315-339, DOI: 10.1108/JEPP-D-17-00005; Mercatus Working Paper, Mercatus Center at George Mason University, Arlington, VA, August 2016. Available at SSRN: https://ssrn.com/abstract=2828279 or http://dx.doi.org/10.2139/ssrn.2828279

Stephen Matteo Miller (Contact Author)

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

Adam J. Hoffer

University of Wisconsin - La Crosse ( email )

1725 State Street
La Crosse, WI 54601
United States

David Wille

George Mason University ( email )

3434 Washington Blvd
4th Floor
Arlington, VA 22201
United States

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