Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/176674
Authors: 
Masiak, Christian
Block, Joern H.
Moritz, Alexandra
Lang, Frank
Kraemer-Eis, Helmut
Year of Publication: 
2017
Series/Report no.: 
EIF Working Paper 2017/44
Abstract: 
The vast majority of firms in Europe are micro firms. Still, we know little about their financing patterns. Our paper aims to close this gap. Based on a large European firm-level data set, we find that micro firms differ in their financing patterns from small and medium-sized companies. Our empirical results show that micro firms are more likely to use internal financing instruments, whereas they are less likely to use state subsidies, trade credit or asset-based financing instruments. Furthermore, micro firms differ from medium-sized firms by using more short-term debt (credit card overdrafts, credit lines and bank overdrafts). The implications of these findings for micro firms and policy makers are discussed.
Subjects: 
Micro firms
SMEs
enterprise financing in Europe
financing patterns
JEL: 
C30
G20
G30
Document Type: 
Working Paper
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