Abstract
Following the financial crisis of 2008, more attention is paid to access to finance for young knowledge-based firms. A study conducted before the crisis showed that it was more difficult for knowledge-based firms to gain access to finance. However, none of the studies considered the differential effect of the crisis on young knowledge-based firms. This document examines this gap using the data set of 1155 firms in Kazakhstan for various sectors of the economy. The analysis was carried out in the context of the years before the crisis of 2002-2005 and after the crisis, when the economy significantly stabilized for 2014-2017. We believe that young knowledge-based firms are more likely to be rejected for financing than other firms, and this has significantly worsened in the post-crisis period. However, regressions that control a variety of characteristic characteristics show that the deterioration in the general conditions for financing. The results show that there are two questions in the financial system. The first is a structural problem that restricts access to finance for young knowledge-based firms. Secondly, the cyclical problem was caused by the financial crisis and significantly affected the young knowledge-based firms of various sectors of the economy.
Highlights
The consequences of the financial crisis of 2008 focused on access to finance for young companies
The development of young knowledge-based firms is an important area of public policy (Bartz and Winkler, 2016)
Knowledge-based firms tend to have more risky business models that are important for creating new markets, but they are valuable for banks
Summary
The consequences of the financial crisis of 2008 focused on access to finance for young companies. The consequences of the financial crisis have led to mistrust and increased risks of investing into young knowledge-based firms. Young knowledge-based firms - those that introduce new products, processes or business models - are likely to create new markets, achieve rapid growth and help the economy recover. Knowledge-based firms tend to have more risky business models that are important for creating new markets, but they are valuable for banks. They often rely more on intangible assets than on physical property, but intangibles are difficult to assess because they are context specific and difficult to use as collateral for lending. It will be noted that it is very important for Kazakhstan to attract investment for young knowledge-based firms
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