Financing constraints and internationalization of Danish SMEs: An analysis of financing constraints and its implication on internationalization aspiration of Danish SMEs
Author
Ingólfsson, Gunnar
Term
4. Term
Publication year
2011
Submitted on
2011-11-01
Abstract
Denne afhandling undersøger, om og hvordan finansielle begrænsninger påvirker danske SMV’ers ambitioner om at internationalisere. På trods af globaliseringens muligheder angiver mange ledere mangel på finansiering som en hovedbarriere. Afhandlingen udvikler en holistisk ramme, der kombinerer udbudsfaktorer (tilgængelighed af interne og eksterne finansieringskilder, SMV’ers karakteristika og udlånsteknologier) og efterspørgselsfaktorer (ejerlederes præferencer, opfattelser og vækstmotiver) for at begrebsliggøre finansielle begrænsninger. Med udgangspunkt i denne ramme analyserer studiet bankudlån til SMV’er i Danmark, belyser egenkapital- og gældsfinansiering, og undersøger observerede kapitalstrukturer via deskriptiv statistik og regressionsanalyse; der indgår desuden kvalitative elementer og en efterspørgselsorienteret undersøgelse af finansieringsbehov og -præferencer (jf. afhandlingens struktur). Samlet peger resultaterne på, at danske SMV’er i vid udstrækning ikke er finansielt begrænsede; afvigelser i kapitalstrukturen afspejler i høj grad ledelsens subjektive præferencer frem for mangel på adgang til kapital. Kilden til finansiering kan påvirke internationaliseringsengagementet på grund af potentielt modstridende motiver mellem ledelse og finansieringsgivere, og væsentlige barrierer synes internt forankrede, især i form af begrænset vilje til at internationalisere. Dette antyder, at indsatser for at fremme SMV-internationalisering ikke kun bør fokusere på kapitaludbud, men også på ledelsens motivation, viden og risikoholdning.
This thesis examines whether and how financing constraints shape Danish SMEs’ aspirations to internationalize. Although globalization has opened new opportunities, managers frequently cite lack of finance as a primary obstacle. The study develops a holistic framework that integrates supply-side factors (availability of internal and external finance, SME characteristics, and lending technologies) with demand-side factors (owner-managers’ preferences, perceptions, and growth motives) to conceptualize financing constraints. Guided by this framework, it analyzes bank lending to SMEs in Denmark, reviews equity and debt financing options, and investigates observed SME capital structures using descriptive statistics and regression analysis; it also includes qualitative components and a demand-side inquiry into financing needs and preferences (as indicated by the thesis structure). Taken together, the results suggest that Danish SMEs are, to a large extent, not financially constrained; observed deviations in SME capital structures largely reflect managerial preferences rather than a lack of access to funds. The source of finance may influence the depth of internationalization due to potentially differing objectives between managers and financiers, and key barriers appear to be internally driven, notably a limited willingness to internationalize. These insights imply that efforts to support SME internationalization should complement supply-side finance measures with initiatives that address managerial motivation, knowledge, and risk attitudes.
[This summary has been generated with the help of AI directly from the project (PDF)]
Documents