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Title: Modeling dependency structures of UK SMEs: Combining clustering and spatial regression Authors:  Antonia Gieschen - The University of Edinburgh (United Kingdom) [presenting]
Raffaella Calabrese - University of Edinburgh (United Kingdom)
Belen Martin-Barragan - The University of Edinburgh (United Kingdom)
Jonathan Ansell - The University of Edinburgh (United Kingdom)
Abstract: Enabling small and medium-sized enterprises (SMEs) to prosper through access to finance is important for all economies. Whilst SMEs are diverse, they are linked by their location and other businesses they interact with. The aim is to investigate how these dependencies impact access to finance for SMEs. By combining spatial regression and clustering, we can explore the dependencies within spatially restricted networks. Using data on 3,227 UK SMEs spread across the UK, this method reveals evidence of a spillover effect that has a significant influence on their access to finance. Our method using clustering establishes networks of interconnected SMEs, which empirically highlight the need for a regional level policy which could aid SMEs in obtaining support for future funding.