The Open UniversitySkip to content
 

Benevolence, integrity and ability: a survey of Italian SMEs and banks

Howorth, Carole and Moro, Andre (2005). Benevolence, integrity and ability: a survey of Italian SMEs and banks. In: Institute for Small Business and Entrepreneurship - 28th National Conference, 1-3 November 2005, Blackpool, UK.

Full text available as:
[img]
Preview
PDF (Version of Record) - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (230Kb)
Google Scholar: Look up in Google Scholar

Abstract

Access to appropriate finance is crucial for the start-up, survival, growth and development of firms. The majority of entrepreneurs, especially in smaller firms, are reliant on the bank system. Previous research examines relationships between firms and banks from a transaction costs economics and/or agency theory point of view. This postulates an opportunistic base to human behaviour. An alternative set of assumptions about human nature encompass altruism and trust. Trust is relevant because it is a way to reduce complexity; it is the 'lubricant' in exchanges; it is crucial in situations of risk or high pressure, and it is among the building blocks of social capital, which have been shown to underpin access to resources for entrepreneurs. Trust is based on an assessment of ability, benevolence and integrity. This paper tests whether there is a relationship between trust and the cost of finance (i.e. interest rates).

Item Type: Conference Item
Copyright Holders: 2005 The Authors
Keywords: small firms; bank relationships; trust;
Academic Unit/Department: Open University Business School
Item ID: 15700
Depositing User: Andre Moro
Date Deposited: 06 Apr 2009 15:35
Last Modified: 11 Sep 2012 12:21
URI: http://oro.open.ac.uk/id/eprint/15700
Share this page:

Actions (login may be required)

View Item
Report issue / request change

Policies | Disclaimer

© The Open University   + 44 (0)870 333 4340   general-enquiries@open.ac.uk