The Provision of Finance to Small Businesses: Does the Banking Relationship Constrain Performance

The beneficial economic effects of entrepreneurial activity can only be realised if such activity is relatively unconstrained in both product and factor markets, finance has been widely identified as a potential constraint on entrepreneurial activity due to either debt or equity gaps. However, in terms of externally supplied finance, it is arguably the availability of debt which is of greatest signifi­cance to most entrepreneurs. Given the inevitable information problems associated with the provision of debt finance, the nature of the relationship between bank and entrepreneur can be of considerable importance in ensuring the appropriate financing decisions are made. This paper examines the link between the banking relationship and the extent to which entrepreneurs are constrained by financing arrangements. Empirical analysis of the extent to which the banking relationship constrains performance suggests that there is no significant difference between more and less successful entrepreneurs

Trust in financial services: Retrospect and prospect

Fostering and maintaining high levels of trust in the financial services sector is seen as crucial because of the characteristics of many financial service and in order to promote consumer engagement in the sector. In this article, we report evidence from a body of work and other commentary to provide an insight into trends in consumer trust in the sector as a whole, in comparison with other organisations and how different types of financial services provider have performed relative to each other. We show that the financial services sector as a whole is trusted more than some comparator institutions, and that aggregate levels of trust in the sector have fluctuated a relatively small amount subsequent to the financial crisis. However, important differences between provider types are apparent and these differences have become more profound in the recent past. We provide suggestions as to how trust in the sector may be improved and provider an analysis of current initiatives to improve trust levels in the sector in general and in banking in particular

The international branch campus : motives and mechanisms

The knowledge economy has a long history and, internationally, has been dependent on the mobility of individuals to engage with and transmit learning. But while individual mobility was widespread, the institutions most commonly associated with knowledge production and dissemination – higher-education institutions – remained stubbornly national – whether limited by the demands of domestic regulation or by protectionist approaches in potential destinations. This was all to change at the end of the 20th century and the past 30 years or so have seen almost seismic shifts in context, in policy and regulation, and in attitudes and behaviour. Now, the idea of institutional mobility is no longer seen as a being a bold, abnormal, overly risky or threatening choice and has become a realistic strategic option for a range of higher-education providers. This chapter charts the growth of international branch campuses in the broader context of international higher education. It explores motives and approaches, considers operational challenges and draws on the case of the University of Nottingham to address many of these issues in practice