Abstract
In the present paper we try to shed light on the approach followed by commercial banks, when dealing with risky entrepreneurial project. We examine the criteria that affect their decision-making process, as regard to applications of New Technology-Based Firms, which embody high risk and uncertainty. Developing a differentiated process we manage to include in a common econometric model, both quantitative and qualitative (non-measurable) data overcoming problems of limited sample (common in small countries), trying to locate all the possible factors that encourage the provision of banking finance and those that hinder it, and the exact degree of each one. Our findings show that both groups of factors are highly considered from financial institutions, with the first to be more significant, disclosing a conservative profile. However, there seems to be other factors too, that affect their financing decision, except financial data and collateral.
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