BOOCOCK, B. and WAHAB, I., 2001. The financing of small firms: different continents, the same problems? New England Journal of Entrepreneurship, 4 (2), pp. 13-31.
The importance of small firms for economic development has been recognised
across the globe. Most governments are aware that smaller enterprises face
problems not experienced by their larger counterparts, and have taken steps to
provide financial assistance. This article compares the experiences of small firms in
the United Kingdom and Malaysia, and assesses whether public and private sector
financial initiatives in the two countries have reduced the existence of the “finance
gap” thought to prevail in both countries. The research programme conducted for
this article suggests that, despite differences in the financial infrastructures, the
cultural backgrounds and stages of economic development, small firms in the UK
and Malaysia seem to adopt the same financing practices and face the same
difficulties in raising funds. The reasons for this phenomenon are explored and the
implications for policy-makers are discussed.