This study investigates the magnitude of credit contraction encountered by Canadian Small-and-Medium-Sized-Enterprises (SMEs) during the recent financial crisis of 2007-2008. These firms account for an important source of job creation and economic welfare (Haltiwanger et al., 2010); therefore, to ensure the creation and growth of SMEs through a smooth flow of capital is crucial for a healthy economic recovery from the crisis. The empirical observation obtained in this study is contrary to what the theory suggests, as well as what many of the existing studies witnessed (i.e., a financial crisis has a negative impact on SME loan circulations). Using binary probit regression and structural break testing, this work finds that Canadian SME loan approval and application rates were higher during the crisis period. This somewhat counterintuitive result prompts the researcher to search for the possible factors enabling SME credit lending in Canada to retain its health during the time of financial distress, which include: (1) the stability of Canadian banks evidenced by the relatively constant Capital Tier I ratio during the crisis; (2) initiatives the Canadian government implemented as a response to the crisis. This result also raises a question whether the five billion dollars the federal government injected in the SME lending market under the Business Capital Availability Program (BCAP), a measure designed to insulate Canadian SMEs from the liquidity shock, could be justified. This research question will be investigated as a future area of research.

Equity crowdfunding (ECF) is the smallest of four main types of crowdfunding (CF) and has emerged as a new form of investment, where investors receive equity of a company in return for capital. Over the past years, the development of CF has given entrepreneurs the option to seek funding from a new source, instead of relying solely on venture capital (VC) and other sources of funding (Mollick, 2013). However, the implementation of regulations for ECF has not yet developed enough to make such investing equally consistent for everyone.   Equity crowdfunded ventures can potentially attract a large number of investors that can possibly create corporate governance issues between the entrepreneur and investors. Additionally, individual investors might both lack the competence or incentive to extensively research and assess a venture and make an investment. Due to the growth in ECF and the lack of knowledge of it, the purpose of this thesis was to discover the perceptions of Swedish fund managers (FMs) regarding the nature of ECF and their interest in it.   In order to fulfill the purpose of this study, previous studies were carefully examined to gain a thorough understanding of the area of study. Furthermore, the empirical findings were gathered through a course of seven semi-structured interviews of Swedish FMs.   Empirical findings suggested that ECF has remained as a means of providing only seed-stage funding for ventures and that it is a marginal phenomenon in Sweden. ECF was believed to potentially disturb the VC industry if it grew and moved to a later stage. Additionally, ECF was found to be a good option for companies that were unable to receive funding from traditional funding methods. Risks of fraud and other scandals should be prevented for ECF to maintain its popularity. The findings implied that the future of ECF remains uncertain. Based on the perceptions of Swedish FMs, ECF neither would replace nor be a threat to traditional methods.

Syfte: Syftet med undersökningen är att beskriva och analysera finansieringsformen P2P-utlåning, dess bildande och utveckling samt utvärdera hur den har fungerat för små- och nyföretagare. Problemformulering: Studien undersöker hur finansieringsformen person-till-person-utlåning via Internet uppstod. Vidare redogörs för utvecklingen på P2P-plattformen Lending Club sedan låneförmedlingens start 2007 fram till 2011. Slutligen undersöks vad som kännetecknar låntagarna på Lending Club som ansöker om lån till små och nya företag samt hur de presterat gällande deras återbetalningsförmåga. Teoretiskt ramverk: Studiens teoretiska ramverk utgörs av framförallt vetenskapliga artiklar vilka behandlar det finansiella gapet, informations-asymmetrier och kreditbedömning. Vidare återges en bakgrunds-teckning över studier gjorda kring social utlåning och P2P-utlåning. Slutsatser: Studien kommer fram till att P2P-utlåning via Internet har sitt ursprung i social utlåning och möjliggjorts genom bland annat teknologisk utveckling av kreditvärderings-verktyg. Lending Clubs utveckling har gått från mer av ett socialt nätverk till att idag likna mer en finansiell intermediär med kreditvärdiga låntagare och institutionella investerare. Medlemmarna på Lending Club som lånar till små och nya företag kännetecknas av högre kreditvärdighet i jämförelse med övriga låntagare samtidigt som de presterar sämre i termer av återbetalningsförmåga. / Purpose: The purpose of this study is to describe and analyze P2P lending, its formation and development and evaluate how it has worked for small businesses and start-ups. Problem statement: The study examines how person-to-person lending through the Internet has emerged. Furthermore, the study examines the development of the P2P platform Lending Club since its inception in 2007 until 2011. Finally, the study examines the characteristics of the borrowers at Lending Club who are applying for loans to small businesses and start-ups, as well as how they perform in terms of their ability to repay their loans.        Theoretical framework: The theoretical framework consists mainly of scientific articles regarding the financial gap, information asymmetries and credit rating. Furthermore, studies on social lending and P2P-lending are presented in a background chapter. Conclusions: The study concludes that P2P lending through the Internet has its origins in social lending and made ​​possible by foremost technological development of rating tools. The development of Lending Club has shifted from more of a social network to more of a financial intermediary with creditworthy borrowers and institutional investors. Members on Lending Club that borrow to small businesses and start-ups are characterized by having a higher credit rating compared to other borrowers, while they perform less well in terms of ability to repay.