Business elevators : an innovative model for accelerating growth of SMEs in developing markets

Difficulties in finding adequate sources of financing and lack of managerial capital are two of the most important reasons hindering growth and innovation of SMEs in developing countries. The need for sophisticated financial contracts that allow for separation of ownership and control is today a fundamental element for the existing models that try to address these issues. In this study I investigate alternative mechanisms for effectively achieving the same objectives in markets where the financial infrastructure is less developed and standard common law contracting tools are not available. This research focuses on three specific topics: liquidity, control rights and asymmetric information. It examines the available literature and the practical experience of investors, entrepreneurs and other agents in a representative market like Colombia, to develop a new framework for analyzing the financing strategy of SMEs and presents an innovative business model for supporting their growth in developing markets based on alternative mechanisms that facilitate the combination of financial and managerial capital to stimulate growth and innovation.

Department dc:contributor.department

Sloan School of Management.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2012

Author dc:creator

• Cárdenas E., Fernando

Advisor dc:contributor.advisor

• Antoinette Schoar.

• Sloan School of Management.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/72937

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/72937