THE IMPORTANCE OF LOAN FOUNDS SYSTEM FOR PROCESS OF FINANCING MICRO AND SMALL SIZED ENTERPRISES ACTIVITY

• Authors: Szydlowski Konrad
• Languages of publication: EN

Abstracts

EN

Limited access to external sources of financing is one of the basic barriers to development of micro and small enterprises. This is the cause why the majority of entities finance their activities using mainly their own funds. Development of the system of loan funds represents a form of supporting enterprises in access to capital. The article aims at presenting the role and importance of loan funds as the institutions supporting development of small enterprises as well as defining the position of the loan system in the process of financing the operations of micro and small enterprises. The characteristics of funds operating in Poland and the analysis of their activities were presented. The statistical papers prepared by the Polish Association of Loan Funds provided the source of empirical data. During the period covered by the study increasing activity of the funds was recorded. The observed trends found confirmation in the increase of capitalization of the entities studied as well as in the increase in the number and value of originated loans. Currently just a few entrepreneurs use that form of financing and the reasons are the uneven geographic distribution of funds, low level of capitalization and ineffective information policies targeted at the community of entrepreneurs.

Keywords

EN

LOAN FUNDS; MICRO AND SMALL ENTERPRISES; SOURCES OF FINANCING

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Uniwersytet Warmińsko-Mazurski w Olsztynie
• Journal: Olsztyn Economic Journal
• Year: 2010
• Volume: 5
• Issue: 2
• Pages: 292-301
• Document type: ARTICLE

Contributors

author

Szydlowski Konrad

• Konrad Szydlowski, Chair of Finance and Banking, University of Warmia and Mazury in Olsztyn, Poland

Identifiers

CEJSH db identifier

11PLAAAA09148