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The use and impacts of bank support on UK small and medium-sized enterprises

Research output: Contribution to journalArticlepeer-review

  • Liang Han
  • Alan Benson
  • Jean Jinghan Chen
  • Song Zhang
This article examines an under-investigated area in relationship banking, i.e. the use of bank advice and support and its impacts on the financial conditions of small and medium-sized enterprises (SMEs). The findings indicate that the characteristics of businesses and entrepreneurs, among other factors, have determinant effects on the use of bank support by SMEs when they make financial decisions. SMEs can alleviate the severity of their financial problems significantly by using bank support more fully, through developing long-term relationships with banks as primary network partners. The article further recognises the value of advice from banks as a substitute for entrepreneurial human capital, especially when bankers use private information to determine the nature and level of financial and non-financial assistance that they are prepared to supply to their clients.
Original languageEnglish
Pages (from-to)61-80
JournalInternational Small Business Journal
Issue number1
Publication statusPublished - 1 Feb 2014


  • ZHANG_2014_cright_ISBJ_The Use and Impacts of Bank Support on U.K. SMEs

    Rights statement: The final, definitive version of this paper has been published in International Small Business Journal, 32(1), 12 Sept 2014, pp. 61-80 by SAGE Publications Ltd, All rights reserved. © [The Author(s)]

    Accepted author manuscript (Post-print), 427 KB, PDF document

    Licence: CC BY

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