Small Business Economics

, Volume 27, Issue 4–5, pp 289–300 | Cite as

SME Policy, Financial Structure and Firm Growth: Evidence From Japan

  • Yuji Honjo
  • Nobuyuki Harada


This paper investigates the effects of public policy and financial structure on the growth of small and medium enterprises (SMEs). Using a panel data set on SMEs in the Japanese manufacturing industry, we examine whether or not the SME Creative Business Promotion Law (CBPL) and financial structure affect firm growth. It is found that SMEs approved by prefectural governors under this law tend to increase assets. Further, we provide evidence that the CBPL and cash flow have an impact on the growth of younger SMEs.


Employment Growth Firm Growth Generalize Little Square Small Business Economic Sample Selection Model 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer 2006

Authors and Affiliations

  1. 1.Faculty of CommerceChuo UniversityTokyoJapan
  2. 2.Graduate School of Systems and Information EngineeringUniversity of TsukubaIbarakiJapan

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