Anastasia Ri

Research Fellow

Having joined ERC in 2018 and more recently a member of the GEM UK national team, Anastasia’s current focus is entrepreneurship and small business economics investigating small firms’ financial constraints, performances and entrepreneurial attitudes and aspirations. She is passionate about giving policymakers the tools to understand the entrepreneurial experience including barriers to entrepreneurship, motivations of aspiring entrepreneurs as well as digital and innovative entrepreneurship.

Contact Details

Email:[email protected]

Biography

Having joined ERC in 2018 and more recently a member of the GEM UK national team, Anastasia’s current focus is entrepreneurship and small business economics investigating small firms’ financial constraints, performances and entrepreneurial attitudes and aspirations. She is passionate about giving policymakers the tools to understand the entrepreneurial experience including barriers to entrepreneurship, motivations of aspiring entrepreneurs as well as digital and innovative entrepreneurship.

Anastasia’s unique perspective is a product of a diverse background and understanding of macroeconomics and finance: she holds a PhD in Economics from the University of Nice – Sophia Antipolis (France), having previously completed an undergraduate degree in Banking and Finance and MSc in Macroeconomics. After her PhD, she worked on a post-doctoral research project financed by the European Investment Bank. The results of this research were published as a book Investment for Growth and Development in the Western Balkans, presented to institutions from a variety of nations and distributed at the Western Balkans Summit in Trieste in July 2017. Historically, Anastasia‘s research focused on economic and financial development, transition and emerging economies and efficiency and productivity analysis and she retains a keen interest in these areas.

 

SOTA Review

Online Peer-to-Peer lending – what do we know, and where are the gaps? SOTA NO39.

In this review we examine the existing literature to highlight what we do (and what we do not) know about online peer-to-peer (P2P) lending and borrowers. Firstly, extensive studies relate different personal attributes to the outcomes of loan application, differences in interest rates, and probability of default. Secondly, information asymmetry is found to be the core issue in P2P lending. Therefore, a growing body of literature addresses financial innovations of P2P platforms, fundamentally new ways of producing and transmitting information. The third important strand of literature attempts to answer if P2P lending is a substitute or a complement of traditional bank lending. While consumer P2P lending attracted much of attention of researchers, P2P business lending is yet understudied. To date, we know little about small businesses who raise funds on P2P platforms, especially what motivates them to choose this particular source of finance, what are the antecedents of their relationship with traditional finance, and what are the outcomes of P2P loans? Overall, there is a need to understand the impact of P2P lending on the SME funding gap and more broadly on financial inclusion.

Authors
Associated Themes
  • Finance
Insight

Online Peer-to-Peer lending to finance business growth: Evidence from Funding Circle

Evidence on the business segment of Peer-to-Peer (P2P) lending is still scarce due to the relative novelty of the phenomenon born in 2010. In this paper, we use data from the Funding Circle (FC) loan book over the period 2010-2017 to emphasise the growing importance of this type of alternative finance as a source of funding for growth of small businesses. Loans for growth purposes represent the most significant part of the FC loan portfolio, the largest marketplace platform for business loans in the UK, before working capital loans and asset finance. Therefore, there is evidence that small businesses turn to online platforms to fund their growth.

Associated Themes
  • Finance
Insight

Business Dynamism and COVID-19 – an early assessment

How will Covid-19 affect business dynamism in the UK? Although, this question is yet to be answered, this paper aims to provide an early assessment by comparing company incorporations and dissolutions in the first quarter of 2020 with the same period in 2019 using the latest available data from the FAME dataset. We observe a drop in incorporations and an increase in dissolutions. The analysis shows that there has been a 70% increase in the number of company dissolutions in March 2020 compared to March 2019. In absolute terms, London had the biggest increase with over 6,400 more dissolutions. In relative terms, this sharp increase was particularly striking in the West Midlands and Wales both of which experienced more than a 100% increase in dissolutions. The sectors particularly influenced by this trend are Wholesale & Retail, Professional Services, Transportation & Storage, Information & Communication and Construction. One important point is that the increase in company dissolutions is driven by young firms which appear as the most vulnerable when facing uncertainty and the current unprecedented challenges.
The UK Government has unveiled a substantive package of support for UK firms, but at the time of writing many firms are struggling to access this assistance and there are some obvious gaps in the range of initiatives announced. If those shortcomings are not remedied quickly, it is foreseeable that we will continue to see a long, slow decline in the number of private-sector firms that support millions of jobs across the economy. In that context, rather than seeing a V-shaped downturn and rebound as some economists such as the OBR have predicted, we could instead see an L-shape recession dragged down by a net loss of companies over a long period.

Associated Themes
  • Business Growth
  • COVID-19
  • Productivity and performance
Research Report

State of Small Business Britain 2019

The State of Small Business Britain report 2019.
The increasing levels of political uncertainty in the UK sets the context for this review of trends in the small business community in mid-2019.
We seek to provide an overview of business confidence and the extent to which that is reflected in the key datasets we have been monitoring for many years. We focus on the following:
• Business Confidence
• Job Creation and Destruction
• Entrepreneurship
• Firm Growth
Alongside this we will highlight some of the key messages coming out of our core research programme, which provide insights into current debates on high-growth, productivity and management practices.

Author

ERC,

Associated Themes
  • Business Growth
  • Productivity and performance