Previous research suggests that inefficiencies in the small business market exist surrounding the availability of capital by Small and Microenterprises (SMMEs). Using data from the 1992 Characteristics of Business Owners Survey (CBO), the 2002 Survey of Business Owners (SBO), and the 2003 Survey of Small Business Finance (SSBF) this paper empirically estimates the "capital gap"- that is the unmet capital demand for business by SMMEs. We find that there is in fact a capital gap as the supply of capital available in the SMME market is not large enough to meet market demand. Given the importance of small businesses to economic vitality, growth, and recovery of the United States economy, the research provides critical and timely findings for policymakers and public finance managers seeking economic development and recovery
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1 March 2011
Research Article|
March 01 2011
Estimating the capital gap for small businesses in New York city
Lisa J. Servon;
Lisa J. Servon
Public Policy at New School University
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M. Anne Visser;
M. Anne Visser
enter for Puerto Rican Studies, Hunter College
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Robert W. Fairlie
Robert W. Fairlie
Applied Economics and Finance at the University of California, Santa Cruz
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Publisher: Emerald Publishing
Online ISSN: 1945-1814
Print ISSN: 1096-3367
Copyright © 2011 by PrAcademics Press
2011
licensed reuse rights only
Journal of Public Budgeting, Accounting & Financial Management (2011) 23 (4): 451–477.
Citation
Servon LJ, Visser MA, Fairlie RW (2011), "Estimating the capital gap for small businesses in New York city". Journal of Public Budgeting, Accounting & Financial Management, Vol. 23 No. 4 pp. 451–477, doi: https://doi.org/10.1108/JPBAFM-23-04-2011-B001
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