Banks, Networks and Small Firm Finance

1st Edition

Andrew Godley, Duncan M. Ross

Published August 31, 1996
Reference - 128 Pages
ISBN 9780714642666 - CAT# RU32352

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This volume results from the observation that small firms often experience considerable difficulty in raising funds for expansion or investment. The essays explore a variety of alternatives in which networks are substituted for market transactions. They focus on the role of trust engendered by historical, cultural and geographical proximity, explore the possible conflicts of interest arising from business and social relationships and discuss the ways in which informal information can reduce the costs involved in sorting, screening and monitoring borrowers.


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