FINANCIAL STRUCTURE OF FRENCH SMALL AND MEDIUM-SIZED ENTERPRISES – EMPIRICAL RESULTS

Abstract

Financial structure of small and medium-sized enterprises differs from financial structure of large companies. To verify this thesis an analysis of 8 financial indicators describing financial structure of French SMEs was made. Data used in research have their source in the European Commission database and concern the period of 1989 – 2004. The research has not proved unequivocally that the share of own capital in total balance in SMEs is lower than in large companies. It has also denied the hypothesis that short-term financing plays a greater role in the sector. These findings are contrary to the popular belief in predominance of own capital and short-term capital in small firms. The research showed also non-standard functioning of medium-sized enterprises.