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.
Table of Contents
Introduction: banks, networks and small-firm finance, Andrew Godley, Duncan M. Ross;; the unsatisfied fringe in Britain, 1930s-80s, Duncan M. Ross; small firm financing in Sweden, 1960-95, Hans Sjogren, Sven Jungerhem; networks adventure capital in the Australasian pastoral sector before World War Two, Simon Ville; regional bank - industry relations during the mid-19th century - links between bankers and manufacturers in Sheffield, c.1850 to c.1885, Lucy Newton; between markets and networks - regional banks in Italy, Francesca Carnevali; Jewish soft loan societies in New York and London and immigrant entrepreneurship, 1880-1914, Andrew Godley; AB Gust Carlsson, 1880-1990 - networks and survival in the Swedish printing industry, Jan Ottoson, Anders Lundgren.