External finance and the growth of rural and urban SMEs in England
利用英国纵向小企业调查数据，研究发现外部融资对农村中小企业增长的促进作用强于城市企业，且缺乏直接竞争会增强这一效应。
Small and Medium-sized Enterprises (SMEs) make a substantial contribution to regional development and economic prosperity. Access to external finance is an important determinant of business growth, and the growth potential of rural firms may be hindered by limited access to external finance. Using data from the UK Longitudinal Small Business Survey, this article examines the impact of external finance on SME growth, paying attention to differences between rural and urban enterprises. Results from an extended ordered probit model incorporating year- and firm-effects indicate that the impact of external finance on growth is stronger for rural businesses than their urban counterparts. This holds for both microbusinesses and SMEs. A lack of perceived direct competitors positively moderates the impact of external finance on business growth, with more rural businesses operating in competition voids. The results are robust after controlling for firms’ characteristics and endogeneity bias.