Jose Liñares-Zegarra

Senior Lecturer

Jose Liñares-Zegarra is Senior Lecturer in Finance at Essex Business School. He holds a PhD from the University of Granada (Spain). Jose is also a Honorary Senior Lecturer at University of St Andrews and a Fellow of the Higher Education Academy (FHEA). Previously, he has held visiting teaching/research positions at the Federal Reserve Bank of Boston, University of St Andrews, University of Alicante, University of Illinois, Florida State University and the Institute of European Finance (Bangor University, UK).

Contact Details

Email:[email protected]

Biography

Jose Liñares-Zegarra is Senior Lecturer in Finance at Essex Business School. He holds a PhD from the University of Granada (Spain). Jose is also a Honorary Senior Lecturer at University of St Andrews and a Fellow of the Higher Education Academy (FHEA). Previously, he has held visiting teaching/research positions at the Federal Reserve Bank of Boston, University of St Andrews, University of Alicante, University of Illinois, Florida State University and the Institute of European Finance (Bangor University, UK).

SOTA Review

Discouraged Borrowers: Measurement, Determinants and Impact. SOTA No 2

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.

Associated Themes
  • Finance