School of Economic and Financial Studies, Macquarie University, North Ryde NSW 2113. The author gratefully acknowledges the assistance of Paul Orton and Shane Coombe of the Australian Business Chamber in compilation of the survey data.
FINANCE FOR AUSTRALIAN SMEs: POLICY ISSUES
Article first published online: 13 APR 2010
1997 The Economic Society of Australia
Economic Papers: A journal of applied economics and policy
Volume 16, Issue 2, pages 39–50, June 1997
How to Cite
HAWTREY, K. M. (1997), FINANCE FOR AUSTRALIAN SMEs: POLICY ISSUES. Economic Papers: A journal of applied economics and policy, 16: 39–50. doi: 10.1111/j.1759-3441.1997.tb00146.x
- Issue published online: 13 APR 2010
- Article first published online: 13 APR 2010
The special financial needs of small business have long been a policy issue in Australia, with the claim often made that capital markets are less than fully responsive to this sector. This paper argues that despite financial deregulation, the small business sector is yet to fully benefit from improved supply of finance. The future reform process should not be jeopardised by precipitate policy changes (such as bank mergers) which could upset the delicate balance of forces currently emerging in the industry. Further, proactive policies are needed to encourage the growth of secondary debt and primary equity capital markets for small business.