In this paper, we find that reduced credit supply reduces firm investments in our sample of small private firms. The … firms hedge against potential future credit supply shocks? (ii) did they have better access to shareholder funding? or (iii …) was the effect driven by past investment patterns? We find that access to shareholder funding during the crisis offset the …

2015, we test whether young businesses are more likely to face credit rejections from lenders than their older peers. Our … the issue of sample selection bias potentially affecting our data. Additional tests also reveal that credit constraints … viability of credit and, thus, ensure the growth of young businesses in the Euro area. …