John Wilson is Professor of Banking & Finance and the Director of Research at the School of Management, University of St Andrews. He is also Director of the Centre for Responsible Banking & Finance.
Consumer Spending Responses to the COVID-19 Pandemic: An Assessment of Great Britain – Research Paper No. 87
Published: 28 April 2020
Since the first death in China in early January 2020, the coronavirus (COVID-19) has spread across the globe, dominated the news headlines and led to fundamental changes in the health, social, political and economic landscape. In this paper, we examine consumer spending responses to the onset and spread of COVID-19, and subsequent government imposed lockdown in Great Britain, GB (England, Scotland, Wales).
Discouraged Borrowers: Measurement, Determinants and Impact. SOTA No 2
Published: 19 September 2018
In recent years increasing attention has been paid to SMEs who do not apply for bank finance for fear of rejection - so-called discouraged borrowers. To date, much of the literature has focused on the measurement of discouragement in SMEs. These firms constitute a major proportion of SMEs with some recent research suggesting they number as many as half a million UK SMEs. However, owing to the different definitions of discouragement adopted, comparisons across different studies are problematic. The growing literature on the determinants of discouragement suggests firm size and age are significant, with nascent and smaller SMEs more likely to be discouraged. Entrepreneurs who are older, female from ethnic minority backgrounds with lower levels of human capital and poorer credit ratings, are more likely to be affected. The evidence base on the potential impact of borrower discouragement is less well established. However, available evidence suggests discouragement may result in reduced investment levels and weaker firm performance. The broader and disaggregated definitions of borrower discouragement used in recent studies provide a useful basis for future comparisons and longitudinal tracking.
An empirical examination of discouraged borrowers in the UK. Research Paper No 69
Published: 24 May 2018
This paper investigates the differences between small and medium sized firms (SMEs) that apply for funding and those that are discouraged from applying for funding - so-called discouraged borrowers. The dynamics and determinants of borrower discouragement, together with its impact on the activities of SMEs are also investigated. Data from the Longitudinal Small Business Survey suggests that one in ten SMEs (9.3%) can be classified as being a discouraged borrower or as many as half a million UK SMEs could be discouraged borrowers.