Learning Objectives

At the end of this chapter you should be able to:

1.Discuss the importance of alternative sources of finance for entrepreneurs, small and medium-sized enterprises

2. Describe why entrepreneurs and SMEs are at a disadvantage compared with large firms in financial markets

3. Appreciate some of the problems that face the providers of finance to the SME sector

4. Compare survey results and known national characteristics on the importance of sources of finance for start-up entrepreneurs and existing ventures

5. Describe research findings comparing risk assessment practices of English and Scottish bank managers and be able to indicate the main differences in these practices

6. Appreciate and account for the importance of bank finance as a source of external finance for entrepreneurs and small firm owners.