Ross Brown

Lecturer.

Dr Ross Brown is a Lecturer in the School of Management, University of St Andrews. He is also a member of the Centre for Responsible Banking and Finance at the University of St Andrews. His main research interests lie in the areas of entrepreneurship, entrepreneurial ecosystems, funding issues for small businesses, innovation policy and regional development.

Contact Details

Biography

Dr Ross Brown is a Lecturer in the School of Management, University of St Andrews.  He is also a member of the Centre for Responsible Banking and Finance at the University of St Andrews.  His main research interests lie in the areas of entrepreneurship, entrepreneurial ecosystems, funding issues for small businesses, innovation policy and regional development.  He recently advised the LEED programme within the OECD on policies to support high growth entrepreneurship. He has also published extensively in these areas in journals such as Regional Studies, Small Business Economics, Environment and Planning C and the Journal of Economic Geography.

SOTA Review

Regional Differences Accessing Finance in UK SMEs: Do they matter? – SOTA No 6

In recent years, there has been a growing body of empirical evidence examining spatial variations in access to bank finance in UK SMEs. The overwhelming bulk of this work suggests a firm’s geographic location plays a crucial role its ability to access finance. Innovative and growth-oriented firms seem those most affected. Regions most adversely affected are peripheral and rural areas with sparse bank branch networks. The main causes of these disparities seem to be connected to the pervasive use of new automated lending technologies and the rapid decrease in the size of the UK bank branch network. The knock-on effect of these trends may be increasing the use of other forms of substitutive finance and increased levels of borrower discouragement within SMEs located in peripheral areas. From the evidence base reviewed, it would appear that regional funding gaps do exist and they do matter. The full impact of their effects on firm performance and wider economic growth remain unknown however.

Authors
Associated Themes
  • Finance
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
Policy Briefing

An empirical examination of discouraged borrowers in the UK.

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.

Associated Themes
  • Finance
Research Paper

An empirical examination of discouraged borrowers in the UK. Research Paper No 69

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.

Associated Themes
  • Finance
Research Paper

Modes of firm growth. Research Paper No 46

There is now a general consensus that high growth firms (HGFs) are economically important, and governments across the world have targeted resources to help firms achieve high growth. Yet while there is a large evidence base on the nature of HGFs, little research considers ‘how’ potential HGFs are trying to grow and ‘what’ is preventing firms from achieving sustained growth (i.e. the barriers firms face to sustain a longer period of rapid growth). This report aims to better understand the nature of growth processes within high growth firms (HGFs).

Associated Themes
  • Business Growth