ICT Small Businesses Access To Bank Financing

Abstract

Studying small businesses in the ICT industry is of major importance for at least two reasons. First of all, small businesses play a crucial role in supporting growth and creating jobs. Secondly, the ICT industry in France, as in most developed countries, is one of the pillars upon which tomorrows economy will be built. Therefore, this article aims at studying access to bank financing by French small businesses in the ICT industry. The analysis covers a sample of 539 firm-years. The empirical results seem to show that these businesses encounter difficulties accessing bank debt and financing their assets, among other things. These difficulties are particularly more significant for small businesses in the service segment than for those in the production segment.