Title: Access to finance and growth of innovative SMEs after Brexit
Authors: Raffaella Calabrese - University of Edinburgh (United Kingdom)
Marta DeglInnocenti - University of Southampton (United Kingdom) [presenting]
Si Zhou - University of Southampton (United Kingdom)
Abstract: A new perspective is offered on the link between the literature on firms' investment decisions during period of uncertainty and the literature on access to finance for innovative Small and Medium Enterprises (SMEs). In particular, it provides nuanced evidence about innovative SMEs expectations of growth and their ability to access debt finance after Brexit. By using a unique survey, we find that innovative SMEs expect to be more financially constrained after Brexit. Furthermore, the results show that innovative SMEs have not only changed their strategies by cutting their employment, but also expect lower growth. Finally, we also find that there is a spatial bias in expectations; innovative firms outside London expect to be more financially constrained and to grow less than those located in London.