Crises effects on banking entrepreneurship financing. An analysis of micro enterprises in Spain from the perspective of Mutual Guarantee Institutions

Financing is key to entrepreneurship, especially in crisis period, when financial markets restriction hinders access to funding to small and medium enterprises. The Mutual Guarantee Institution facilitates funding to new businesses through guaranteed long term loans. This paper analyzes banking entrepreneurship financing to micro-enterprises (less than 10 employees) in Spain during the period 2003-2012, but only Mutual Guarantee Institution guaranteed enterprises, to determinate if financing products have changed. The analysis concludes that the financial products distribution has changed during the crisis (2008-2012), it has increased the weight of the products designed to liquidity, and the crisis effects are higher for smaller and older companies