Abstract
There has traditionally been a symbiotic link between new business ventures and new banking ventures. This article finds that the traditional link between small businesses and small banks – the small business loan – has weakened in recent years. While new banks have intensified their reliance on small business customers, small business borrowers have become less reliant on small banks for their credit needs. These findings are consistent with rapid changes in the structure of the banking industry, financial instruments and markets, and communications and information technology over the past two decades.
JEL Codes
G21, M13
Keywords
Banks, New Banks, Bank Startups, Entrepreneur
Recommended Citation
DeYoung, Robert
(2002)
"New Bank Start-Ups: Entrepreneurs Funding Other Entrepreneurs,"
Journal of Entrepreneurial Finance and Business Ventures:
Vol. 7:
Iss.
3, pp. 61-76.
DOI: https://doi.org/10.57229/2373-1761.1098
Available at:
https://digitalcommons.pepperdine.edu/jef/vol7/iss3/6
