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Revisiting control aversion: the role of financiers in connecting entrepreneurs to the marketplace
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.
2015 (English)In: Journal of Small Business and Enterprise Development, ISSN 1462-6004, E-ISSN 1758-7840, Vol. 22, no 3, 417-432 p.Article in journal (Refereed) Published
Abstract [en]

Purpose: The purpose of this paper is to investigate the effects of small business entrepreneurs' relinquishment of control aversion and the impact of their interaction with external financiers on market connection. Design/methodology/approach: Questionnaires were sent to the chief executive officers of small businesses in the manufacturing and professional services sectors. A total of 459 valid responses were analyzed in a structural equation model. Findings: The attitude of small business entrepreneurs in relying on financiers' advice is marked by control aversion. This fear of losing control creates information asymmetry, which in itself leads to decreased financing opportunities for small business entrepreneurs. The results of the study suggest that small firms seeking the aid of financiers will be provided with substantial additional information about the market. Issues pertaining to supply seem to be less relevant than those relating to demand, thus indicating that greater focus should be placed on the investment readiness of small businesses. Originality/value: This study emphasizes the importance of the role of attitudes among SMEs in understanding capital market failure and credit rationing.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2015. Vol. 22, no 3, 417-432 p.
Keyword [en]
Entrepreneurship, SME, Banking, Service marketing, Market connection, SME lending
National Category
Business Administration
Identifiers
URN: urn:nbn:se:umu:diva-122305DOI: 10.1108/JSBED-04-2014-0064OAI: oai:DiVA.org:umu-122305DiVA: diva2:938256
Available from: 2016-06-16 Created: 2016-06-16 Last updated: 2016-12-20Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf