Corporate Finance: The Role of the Private Equity Funds in Restructuring of the Economic Productive Tissue
Benslimane, Sonia; Poix, Michel (2009), Corporate Finance: The Role of the Private Equity Funds in Restructuring of the Economic Productive Tissue, 7th EIF Annual Forum, 2009-12, Paris, France
TypeCommunication / Conférence
Conference title7th EIF Annual Forum
MetadataShow full item record
Abstract (EN)The question of financing innovative small business is determinant in the current context. Giving the share that they represent in the market, they contribute to increase productivity of the economy. The problems of financing the SME’s are related to the almost intangible specificity of their assets that give them only a limited access to the traditional financing channels. Moreover, the financing becomes risky as the decision maker has no history to assess the potential of development on the basis of previous results. The traditional funding channels are incompatible with the context of a value creation based on innovation. Private equity activity is in this regard a better mode of financing innovative enterprises added to the advantage of assuming the risk associated with their specific characteristics. From an economic point of view, private equity funds can boost and contribute to the value creation process.
Subjects / KeywordsSmall Business; Innovation; Financing; Private Equity; Specific Assets
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