A STRATEGIC DECISION FOR GROWTH, FINANCING AND SURVIVAL OF SMALL AND MEDIUM

Abstract:

In order to alleviate the problem of cbkp_redit rationing family firms can face and provide additional financing sources to bank cbkp_redit. MAB is an attractive market for young and growing companies, as well as for guaranteeing the survival of older firms. However, the MAB has not achieved broad acceptance in the case of Spanish firms. With this purpose, we compare, through a survey, financing preferences and different attitudes regarding the Alternative Stock Exchange Market for small and start-up companies. We carried out a crosssectional empiric study with a sample of 102 firms. Results indicate that the most important advantages to go public in the case of family firms follow this order: 1º get access to an alternative financing source and avoiding cbkp_redit rationing; 2º guarantee the survival of the firm; 3º providing liquidity and 4º diversifying risks. Regarding the main barriers, family firms show the following order: 1º Resistance to change of owner-managers and 2º internal factors in relation to the lack of specific skills. Besides, results also pointed out there are differences when comparing the preferences of family firms and non-family firms regarding these advantages and barriers of going public. We expect our results to be useful for family firms’ entrepreneurs, in the sense they should be aware of a new Stock Exchange Market (MAB) designed to accomplish with their specificities, knowing their main advantages and barriers. In that sense, family firms should face key issues such as succession process, internationalization, professionalization, taking into account a new strategic alternative decision. We also expect the results of the study help policy …

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