SBANC
Newsletter
June
13, 2006
Issue 425-2006
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QUOTE
"I
have yet to find the man, however exalted his station, who
did not do better work and put forth greater effort under a
spirit of approval than under a spirit of criticism."
-- Charles
Schwab
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FEATURE
PAPER
Small
Business and Community Banks
The
following paper was presented at the 2005 USASBE/SBI Conference.
It was written by Jonathon A. Scott and William C. Dunkelberg
of Temple University.
Abstract
Using
survey data from a sample of U.S. small businesses collected
in 1987, 1995 and
2001, this paper addresses the question of whether small firms
obtain better banking
outcomes from community banks. Over the entire period, we find
that small firms using
community banks experience higher quality service are less likely
to have experienced
increases in the number of services with fees or fees per unit
of service, and experienced
improved credit availability. The results for loan terms were mixed,
with no differences
detected for rates charged or compensating balances required, but
a significantly higher
incidence of collateral requirements and lower incidence of loan
fees. These results also
suggest that small firms with limited operating histories or those
with limited financial
data that is used in typical credit scoring models have a better
chance of success for a
loan approval at a community bank.
Introduction
Do
community financial institutions (“CFIs”) provide
small firms with better banking
outcomes, such as service quality, credit availability and loan
terms? 1 This question is
important to small businesses because of their heavy reliance on
banks for their external
financing (Berger and Udell, 1998) as well as important for macroeconomic
policy given
the importance of small business in the job generation process.
Community banks, with
their flatter organization structures are better suited to produce
soft information such as
information about the owner’s character, relationship with
suppliers or ability to manage
through a business cycle (Berger and Udell, 2002, Stein, 2002).
This information should
benefit small, small, information-opaque firms that may not have
a track record of hard
information required of many large banks that rely on financial
ratios or credit scoring to
make lending decisions. Indeed, the preponderance of the empirical
evidence shows that
community banks enhance credit availability for small firms (e.g.,
Berger et al, 2004).
Yet, there is scant evidence regarding whether community banks
provide improved loan
terms or improved service.
In this
paper we use survey responses from a representative set of U.S. small businesses
in 1987, 1995 and 2001 to determine whether small firm owners have a better
banking
experience at community banks. These data provide detailed firm-level information
on
owner assessments of service quality that include accessibility of the loan
officer, quality
of service, capability of staff, staff turnover, and the overall ease of doing
business. The
survey provides information on the outcome of the most recent loan attempt
and an
assessment of any unmet borrowing needs in the past few years. If owners were
successful on the most recent attempt, they reported both the rate and non-rate
terms of
the loan. Using the size of their current bank as the key independent variable,
we are able
to investigate the association between choice of bank size and measures of
service
quality, credit availability, and loan terms.
Read
the Entire Paper...
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CONFERENCES
SMBE
|
| Who: |
SMB
Egypt
|
| What: |
The
International Franchise and Branding Exhibition 2006
|
| Where: |
Doha,
Qatar |
| When: |
June
18-21, 2006 |
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ICSB
|
| Who: |
International
Council for Small Business
|
| What: |
51st
ICSB World Conference
|
| Where: |
Melbourne,
Australia |
| When: |
June
18-21, 2006 |
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IPSI
|
| Who: |
Internet,
Processing, Systems, and Interdisciplinary (Research)
|
| What: |
IPSI
2006 - New York
|
| Where: |
New
York, New York, USA |
| When: |
July
3-6, 2006 |
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|
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MEI
|
| Who: |
MEI
2006
|
| What: |
2nd
International Symposium on Management, Engineering
and Informatics
|
| Where: |
Orlando,
Florida, USA |
| When: |
July
16-19, 2006 |
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|
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DSI
|
| Who: |
Decision
Sciences Institute
|
| What: |
37th
Annual Meeting
|
| Where: |
San
Antonio, TX, USA |
| When: |
November
18-21, 2006 |
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CALLS FOR PAPERS
ABD
|
| Who: |
Academy
of Business Disciplines
|
| What: |
8th
Annual Conference
|
| Where: |
Fort
Myers Beach, Florida, USA |
| When: |
November
9-11,
2006 |
Submission
Deadline:
June 15, 2006
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|
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NCIIA
|
| Who: |
National
Collegiate Inventors and Innovators Alliance
|
| What: |
11th
Annual Meeting
|
| Where: |
Tampa,
Florida, USA |
| When: |
March
22-24, 2007 |
Submission
Deadline:
June 16, 2006
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|
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AACSB
|
| Who: |
Association
to Advance Collegiate Schools of Business
|
| What: |
Continuous
Improvement Conference
|
| Where: |
Minneapolis,
Minnesota, USA |
| When: |
September
17-19, 2006 |
Submission
Deadline:
June 30, 2006
|
|
|
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AGSE
|
| Who: |
Austrailian
Graduate School of Entrepreneurship |
| What: |
Fourth
AGSE International Entrepreneurship RESEARCH Exchange
2007
|
| Where: |
Queensland
University of Technology, Brisbane, Australia |
| When: |
February
7-9, 2007 |
Submission
Deadline:
July 1, 2006
|
|
|
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ISOBD
|
| Who: |
International
Society of Business Disciplines |
| What: |
Fall
Conference
|
| Where: |
Flamingo
Hotel - Las Vegas, Nevada, USA |
| When: |
November
5-8, 2006 |
Submission
Deadline:
July 15, 2006
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TIP
OF THE WEEK
Thinking Questions
I call these
types of questions "thinking questions." These are one of the
most useful tools I have ever found for improving performance
Asking thinking questions means you are now focused on one thing:
people's thinking. If people are being paid to think, isn't it
about time we helped them improve their thinking?
Thinking
questions ask about the nature of people's thinking, in ways
that have them become more self-aware and take more responsibility.
More examples of thinking questions:
"How
long have you been thinking about this?"
"How often do you think about this?"
"How important is this issue to you, on a scale of one to ten?"
"How clear are you about this issue?"
"What priority is this issue for you in your work or life right now, top five, three, or top one?"
"What priority do you think it should be?"
"How commited to resolving this are you?"
"Can you see any gaps in your thinking?"
"What impact is thinking about this issue havving on you?"
"How do you react when you think that thought?"
"How do you feel about the resources you have put into this so far?"
"Do you have a plan for shifting this issue?"
"How clear is your thinking about the plan?"
"What are you noticing about your thinking?"
"What insights are you having?"
"How could you deepen this insight?"
"Would it be worth turning this insight into a habit?"
"Do you know what to do to turn this into a habit?"
"Are you clear about what to do next?"
"How can I best help you further?"
| David
Rock. Quiet Leadership: Six Steps to Transforming Performance
at Work.
1st Edition. HarperCollins Publishers. 2006. 131-132. |
ANNOUNCEMENTS
Register now
for the ISOBD 2006 Conference Event
ISOBD is offering
a conference standard rate of $250. A manuscript submission is
not necessary in order
to register
for the conference and as a special protection for you, if your
manuscript/abstract is not accepted by ISOBD before August 31,
2006. In
addition to being a premier scholarship outlet, ISOBD also sponsors
several
prestigious business teaching and administrative awards.
For more info click Here
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The
SBANC Newsletter is provided as a service to the members of our
affiliates: Academy of Collegiate Marketing Educators (ACME), Association
for Small Business & Entrepreneurship (ASBE), Federation of
Business Disciplines (FBD), International Council for Small Business
(ICSB), Institute for Supply Management (ISM), The International
Small Business Congress (ISBC), Marketing Management Association
(MMA), Small Business Administration (SBA), Service Corps of Retired
Executives (SCORE), Small Business Institute (SBI), Society for
Marketing Advances (SMA), United States Association for Small Business & Entrepreneurship
(USASBE), U.S. Department of Veterans Affairs (VA).. If you are
interested in membership or would like further information on one
of our affiliates, please see our web site at http://www.sbaer.uca.edu
SBANC STAFF
Main Office Phone: (501) 450-5300
Dr.
Don B. Bradley III, Executive Director of SBANC & Professor
of Marketing;
Direct Phone: (501) 450-5345
Brandon
Tabor, Development Intern
Tyler
Farrar, Development Intern
Garion
McCoy, Development Intern
To subscribe or unsubscribe to the
SBANC Newsletter, please E-mail SBANC at sbanc@uca.edu
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