Abstract
Technology companies are fundamental to the development of a country’s economy, so it is essential to analyze possible factors that support their creation and consolidation. This research study the relationship between the growth of young technology companies and the financial ecosystem, characterised by the emergence of new, more agile and flexible sources of finance. Specifically, an empirical analysis is carried out using an indicator of the evolution of the financial environment that takes into account all available alternative sources of external finance. The analysis uses panel data methodology, specifically the Baltagi-Wu GLS estimator with random effects model, on a sample of 158 young technology SMEs from different Spanish regions. The results show, among other things, a positive and significant relationship between the development of the regional financial ecosystem and the growth in turnover and assets of young technology SMEs, indicating that regions with more developed financial ecosystems offer greater opportunities for growth. This has implications for strategic and operational managers, as it confirms that the decision to locate in different regions not only affects aspects such as production and logistics, but also access to sources of finance, which will have a direct impact on sales and asset growth. Likewise, politicians and public managers should be aware of the importance of promoting adequate financial ecosystems that facilitate the development and survival of these companies.
Published Version
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