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Sticking it on Plastic: Credit Card Finance and Small and Medium Sized Enterprises in the UK

Brown, Ross and Liñares-Zegarra, José and Wilson, John OS (2018) 'Sticking it on Plastic: Credit Card Finance and Small and Medium Sized Enterprises in the UK.' Regional Studies. ISSN 0034-3404

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Abstract

This paper investigates the role of credit card financing in UK small and medium sized enterprises (SMEs) and how this varies by location and business orientation. Using a large scale dataset of UK SMEs, the results of a regression based analysis suggest that firms located in peripheral geographic areas have greater usage of credit cards relative to counterparts located in ‘core’ locations. Innovative, growth, and export-oriented SMEs are also more inclined to use credit card financing. Moreover, SMEs that use credit cards as a form of improvised financial ‘bootstrapping’ are more likely to seek additional funding sources in the future.

Item Type: Article
Uncontrolled Keywords: Finance, SMEs, credit cards, bootstrapping, peripheral locations, thin markets
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Finance Centre
Depositing User: Elements
Date Deposited: 15 Jun 2018 08:42
Last Modified: 26 Mar 2019 13:15
URI: http://repository.essex.ac.uk/id/eprint/22143

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