Skip navigation

Small shop survival - the financial dimension

Small shop survival - the financial dimension

Arrieta Paredes, Mary-Paz ORCID: 0000-0001-5632-394X, Coca-Stefaniak, J. Andres ORCID: 0000-0001-5711-519X and Hallsworth, Alan (2019) Small shop survival - the financial dimension. Journal of Retailing and Consumer Services. ISSN 0969-6989 (In Press)

[img] PDF (Only for internal reviewers)
24443 ARRIETA-PAREDES_Small_Shop_Survival_(Submitted)_2019.pdf - Submitted Version
Restricted to Registered users only

Download (472kB) | Request a copy


Small and medium-sized enterprises (SMEs), many of which are small retail shops, remain the largest employer in the western world. Yet the financing of their fixed and working capital investments remains under-researched. This study focuses on the topic by examining Eurozone wholesale and retail enterprises at the peak of the 2008 financial downturn. An analysis using structural equation models compares existing theories - within retail finance and policy research - on how retail SMEs may source capital. It finds that pecking order theory, the independence of investment and financing and also the contest for resources between fixed and working capital do not hold. Moreover, it is found that in the Eurozone government grants and subsidized loans were used as complements to both internal and external financing. Crucially, a business environment characterized by stronger legal rights and deeper credit information did not improve SMEs’ access to external finance. Further research in this field is needed in order to improve our understanding of the wider context underpinning the resilience of retail SMEs in future global financial crises.

Item Type: Article
Uncontrolled Keywords: SME retail, global financial crisis
Subjects: H Social Sciences > HG Finance
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA)
Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA) > Centre for Governance, Risk & Accountability (CGRA)
Last Modified: 25 Sep 2019 13:46
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: GREAT 6

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics