Sticking it on plastic: credit card finance and small and medium-sized enterprises in the UK

Ross Brown; José  Liñares-Zegarra; John O. S. Wilson

doi:10.1080/00343404.2018.1490016

Sticking it on plastic: credit card finance and small and medium-sized enterprises in the UK

Ross Brown, José Liñares-Zegarra, John O. S. Wilson

Research output: Contribution to journal › Article › peer-review

Abstract

This paper investigates the role of credit card financing in UK small and medium sized enterprises (SMEs) and how this varies by location and business orientation. Using a large scale dataset of UK SMEs, the results of a regression based analysis suggest that firms located in peripheral geographic areas have greater usage of credit cards relative to counterparts located in ‘core’ locations. Innovative, growth, and export-oriented SMEs are also more inclined to use credit card financing. Moreover, SMEs that use credit cards as a form of improvised financial ‘bootstrapping’ are more likely to seek additional funding sources in the future.

Original language	English
Pages (from-to)	630-643
Journal	Regional Studies
Volume	53
Issue number	5
Early online date	31 Jul 2018
DOIs	https://doi.org/10.1080/00343404.2018.1490016
Publication status	Published - 4 May 2019

Keywords

Finance
Small and medium-sized enterprises (SMEs)
Credit cards
Bootstrapping
Peripheral locations
Thin markets

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10.1080/00343404.2018.1490016

Brown_RegionalStudies_Sticking_AM
Copyright © 2018 Regional Studies Association. This work is made available online in accordance with the publisher’s policies. This is the author created, accepted version manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at https://doi.org/10.1080/00343404.2018.1490016
Accepted author manuscript, 267 KB

John Ogilvie Stephen Wilson
- jsw7st-andrews.acuk
- Finance (Business School) - Professor, Head of Finance
- Centre for Responsible Banking and Finance
Person: Academic

Cite this

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title = "Sticking it on plastic: credit card finance and small and medium-sized enterprises in the UK",

abstract = "This paper investigates the role of credit card financing in UK small and medium sized enterprises (SMEs) and how this varies by location and business orientation. Using a large scale dataset of UK SMEs, the results of a regression based analysis suggest that firms located in peripheral geographic areas have greater usage of credit cards relative to counterparts located in {\textquoteleft}core{\textquoteright} locations. Innovative, growth, and export-oriented SMEs are also more inclined to use credit card financing. Moreover, SMEs that use credit cards as a form of improvised financial {\textquoteleft}bootstrapping{\textquoteright} are more likely to seek additional funding sources in the future. ",

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Sticking it on plastic: credit card finance and small and medium-sized enterprises in the UK

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John Ogilvie Stephen Wilson

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