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.

'Tell me Your story applied': ethics in narrative research with young fathers

There has been a significant increase of interest in parents who are considered to be outside of normative discourses; specifically the 'moral panic' relating to an increase in the demography of teenage mothers in the UK (SEU, 1999, 2003; Swann et al., 2003). Recently research has turned to the experiences of parenting from the father's perspective (Daniel and Taylor, 1999, 2001) although there remains a significant gap focusing on the experiences of young fathers. It is argued by Swann et al. (2003) that young fathers are a difficult group to access and this has limited the amount and type of studies conducted with many studies on young parents looking at the role of the father through the eyes of the mother. This contribution focuses on the use of narrative interviews with a small group of young, vulnerable, socially excluded fathers who are users of the statutory social services in the UK. The article looks specifically at the ethics and practical challenges of working with this group and offers insights into the use of the narrative method and the ethical dilemmas resulting from it.