Title: How climate change and supply chain affect SMEs financing
Authors: Raffaella Calabrese - University of Edinburgh (United Kingdom) [presenting]
Marc Cowling - Oxford Brookes University (United Kingdom)
Yijun Wang - The University of Edinburgh (United Kingdom)
Abstract: As Small and Medium Enterprises (SMEs) represent the large majority of UK companies, they are crucial to achieving the net zero target by 2050. In the climate change literature, transition risk is the uncertainty caused by changing policies, strategies and investments to decrease carbon emissions. Given SME limited availability of internal funds and resources, they usually rely on external credit, customers and suppliers. Brexit and Covid cause major supply chain issues in the UK and worldwide. Therefore, we analyse the effects of supply chain and climate change on SME finance to understand if SMEs operating in sectors largely affected by transition risk are facing greater financial constraints.