Is Bank Finance the Achilles' Heel of Irish SMEs?

Autor/inn/en	Carey, Dermot; Flynn, Antoinette
Titel	Is Bank Finance the Achilles' Heel of Irish SMEs?
Quelle	In: Journal of European Industrial Training, 29 (2005) 9, S.712-729 (18 Seiten) PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0309-0590
DOI	10.1108/03090590510629849
Schlagwörter	Evidence; Interviews; Social Capital; Foreign Countries; Small Businesses; Corporate Support; Credit (Finance); Financial Needs; Investment; Public Policy; Organizational Theories; Occupational Surveys; Banking; Monetary Systems; Ireland + Suchen Sie Ihr Suchwort? Evidenz; Interviewing; Interviewtechnik; Sozialkapital; Ausland; Kleingewerbe; Credit; Kredit; Investments; Geldanlage; Investiton; Öffentliche Ordnung; Organisationstheorie; Berufsanalyse; Bankgeschäft; Monetary system; Währungssystem; Irland
Abstract	Purpose: The purpose of this research paper is to examine the implications of new banking regulations (Basel II) for the Irish SME sector. Training gaps are identified and recommendations to advance social capital networks are provided. Design/methodology/approach: The Irish SME dependence on external (bank) finance and their susceptibility to legislative changes in that sector is explored through a survey of Irish SMEs. Additionally, banks' preparedness is investigated through semi-structured interviews of five major banks, all serving the Irish SME sector. Findings: The results show a high degree of Irish SME dependence on banks as a source of funding. Furthermore, there is evidence of increases in bank rates/charges over the past two years with limited switching between banks to avail of better rates. Moreover, the findings indicate that, while banks operating in the SME sector are on target for Basel II adoption, Irish SMEs remain unaware and unprepared for the possible implications of this change. The future competitive consequences for Irish banks that are slow to achieve sophisticated compliance with the new regulations are also discussed, in relation to their secondary effect on the SME sector. Originality/value: The key contribution of this paper is that it highlights the need for Irish SMEs to proactively manage their potential funding sources. As part of the development of the necessary management skills, various training recommendations are made for Irish SMEs facing a more sophisticated global financial regulatory environment. (Contains 1 figure, 8 tables, and 7 notes.) (As Provided).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10