Financing of SME's: an asset side story

The main sources of financing for small and medium sized enterprises (SMEs) are equity (internally generated cash), trade credit paid on time, long and short term bank credits, delayed payment on trade credit and other debt. The marginal costs of each financing instrument are driven by asymmetric information (cost of gathering and analysing information) and transactions costs associated with non-payment (costs of collecting and selling collateral). According to the Pecking Order Theory, firms will choose the cheapest source in terms of cost. In the case of the static trade-off theory, firms choose finance so that the marginal costs across financing sources are all equal, thus an additional Euro of financing is obtained from all the sources whereas under the Pecking Order Theory the source is determined by how far down the Pecking Order the firm is presently located. In this paper, we argue that both of these theories miss the point that the marginal costs are dependent of the use of the funds, and the asset side of the balance sheet primarily determines the financing source for an additional Euro. An empirical analysis on a unique dataset of Portuguese SME's confirms that the composition of the asset side of the balance sheet has an impact of the type of financing used and the Pecking Order Theory and the traditional Static Trade-off theory are rejected.

The eLIDA CAMEL nomadic model of collaborative partnership for a community of practice in design for learning

A nomadic collaborative partnership model for a community of practice (CoP) in Design for Learning (D4L) can facilitate successful innovation and continuing appraisals of effective professional practice, stimulated by a 'critical friend' assigned to the project. This paper reports on e-learning case studies collected by the JISC-funded UK eLIDA CAMEL Design for Learning Project. The project implemented and evaluated learning design (LD) tools in higher and further education within the JISC Design for Learning pedagogic programme (2006-07). Project partners trialled professional user evaluations of innovative e-learning tools with learning design function, collecting D4L case studies and LD sequences in post-16/HE contexts using LAMS and Moodle. The project brought together learning activity sequences within a collaborative e-learning community of practice based on the CAMEL (Collaborative Approaches to the Management of e-Learning) model, contributing to international D4L developments. This paper provides an overview of project outputs in e-learning innovations, including evaluations from teachers and students. The paper explores intentionality in the development of a CoP in design for learning, reporting on trials of LD and social software that bridged tensions between formalised intra-institutional e-learning relationships and inter-institutional professional project team dynamic D4L practitioner interactions. Following a brief report of D4L case studies and feedback, the catalytic role of the 'critical friend' is highlighted and recommended as a key ingredient in the successful development of a nomadic model of communities of practice for managing professional e-learning projects. eLIDA CAMEL Partners included the Association of Learning Technology (ALT), JISC infoNet, three universities and five FE/Sixth Form Colleges. Results reported to JISC demonstrated D4L e-learning innovations by practitioners, illuminated by the role of the 'critical friend'. The project also benefited from formal case study evaluations and the leading work of ALT and JISC infoNet in the development of the CAMEL model.