Assessment of the impact government financing and lending support on small business employment growth: experience of the USA

Authors

G. I. Foshan
Kuban State University, Russian Federation
V. V. Zabolotskaya
Kuban State University, Russian Federation

Abstract

With applying econometric tools the authors presented autoregressive models with a distributed lag that determine the significant dependence of the growth rate of the number of employees at small enterprises in the USA on the growth rate of financial and lending support for Government programs of the U.S. Small Business Administration for the period from 1996 to 2017. The authors made conclusions that in the ongoing state programs of financial, lending and guarantee support for small enterprises in the United States are highly efficient and targeted, they can ensure a stable employment growth in the SME sector.

Keywords

US Small Business Administration, small businesses, financial and credit support, employment level, autoregressive distributed lag model

Funding Info

The research was carried out with financial support from the Russian Foundation for Basic Research and the Krasnodar Territory in the framework of the scientific project No. 19-410-230060 ‒ р_а.

Authors Info

G. I. Foshan

Candidate of Economic Sciences, Associate Professor of Theoretical Economics at Kuban State University

Email: foshan@mail.ru

V. V. Zabolotskaya

Candidate of Economic Sciences, Associate Professor of the Department of World Economy and Management at Kuban State University, Doctoral student of the Department of Risk Management and Insurance, St. Petersburg State University

Email: zvikky90@gmail.com

References

  1. Банников В.А. Векторные модели авторегрессии и коррекции регрессионных остатков (Eviews) // Прикладная эконометрика. 2006. № 3. С. 96–129. URL: https://rucont.ru/efd/450814
  2. Заболоцкая В.В. Государственные программы поддержки малого бизнеса в США // Мировая экономика и международные экономические отношения. 2019. Т. 63. № 12. С. 5–11. DOI: 10.20542/0131–2227–2019–63–12
  3. Alsaaty F. Dwindling Entrepreneurial Spirit in the United States: A Time for Rethinking and Action // Journal of Small Business and Entrepreneurship Development. 2017. Vol. 5 (1). P. 55–63. DOI: 10.15640/jsbed.v5n1a6
  4. Business Employment Dynamics. Economic News Release. Bureau of Labor Statistics. URL: https://www.bls.gov/news.release/cewbd.toc.htm (дата обращения: 01.11.2019)
  5. Carter R., Van Auken H. Small Firm Bankruptcy // Journal of Small Business Management. 2006. Vol. 44 (4). P. 493–512. doi:10.1111/j.1540–627X.2006.00187.x
  6. Cortes B.S. Impact of Small Business Administration Lending On State Level Economic Performance: A Panel Data Analysis // The International Journal of Business and Finance Research. 2010. Vol. 4. No. 3. P. 55–65
  7. Craig B.R., Jackson III W.E., Thomson J.B. On Government Intervention in the Small-Firm Credit Market and its Effect on Economic Performance. Federal Reserve Bank of Cleveland. 2007. Working Paper 07–02. Cleveland, OH. P. 47–67
  8. Craig B.R., Jackson III W.E., Thomson J.B. Small Firm Finance, Credit Rationing, and the Impact of SBA-Guaranteed Lending on Local Economic Growth // Journal of Small Business Management. 2007. Vol. 45. No. 1. P. 116–132
  9. Diliger R.J. Small Business Administration and Job Creation. Congressional Research Service Report. 20 December 2018. URL: https://crsreports.congress.gov/search/#/?termsToSearch=R41523&orderBy=Relevance
  10. Estrin S., Korosteleva J., Mickiewicz T. Which Institutions Encourage Entrepreneurial Growth Aspirations? // Journal of Business Venturing. 2013. Vol. 28 (4). P. 564–580. DOI: https://doi.org/10.1016/j.jbusvent.2012.05.001
  11. Final_Website_Reports_Q4_FY18_1. URL: https://www.sba.gov/about-sba/sba-performance/performance-budget-finances/small-business-administration-sba-loan-program-performance
  12. Kersten R., Harms J., Liket K., Maas K. Small Firms, Large Impact? A Systematic Review of the SME Finance Literature // World Development. 2017. Vol. 97. P. 330–348. URL: http://dx.doi.org/10.1016/j.worlddev.2017.04.012
  13. Lerner J. The Government as Venture Capitalist: The Long-Run Impact of the SBIR Program. National Bureau of Economic Research. 1996. Working Paper No. 5753. Cambridge, MA
  14. Report to Congress on the Availability of Credit to Small Businesses. The Board of Governors of the Federal Reserve System. URL: https://www.federalreserve.gov/publications/2017-september-availability-of-credit-to-small-businesses.htm
  15. Ropega J. The Reasons and Symptoms of Failure in SME // International Advances in Economic Research. 2011. Vol. 17 (4). P. 476–483. DOI: 10.1007/s11294–011–9316–1
  16. Snijders J., van der Horst R., Isusi I., Lindeboom G.-J. SME Promotion Agencies: Is There a Best Set-Up? A Quest for Good Practices. Geneva: ILO, 2016. URL: https://www.ilo.org/wcmsp5/groups/public/—ed_emp/—emp_ent/–ifp_seed/documents/publication/wcms_532833.pdf

Statistics

Download data is not yet available.

Article Sidebar

PDF (Russian) JATS XML

Article Details

Issue

2019 · No. 4 (56)

Section

Global Economy

Publication History

Published 2019-12-10

How to Cite

[1]
Foshan G.I., Zabolotskaya V.V. Assessment of the impact government financing and lending support on small business employment growth: experience of the USA // Economics: Theory and Practice. 2019. No 4 (56). С. 16–26. URL: https://etip.kubsu.ru/article/view/507

License

Copyright (c) 2019 G. I. Foshan, V. V. Zabolotskaya

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.