Innovation in Colombian SMEs: 252 53
Relationship with external financing in crisis conditions
DOI:
https://doi.org/10.51896/2a2axc60Keywords:
External financing, MSME innovation, crisis, gender, educational attainmentAbstract
This study examines the impact of external financing conditions on the innovation levels of Colombian MSMEs during a crisis, differentiating by managers' educational attainment and gender. Data collected from 479 firms indicate that during the COVID-19 pandemic, banks restricted access to loans and tightened lending requirements. Nevertheless, despite facing significant challenges, these organizations maintained an acceptable level of innovation throughout 2020. Furthermore, multiple regression analysis confirms that improved credit conditions lead to higher innovation indicators, particularly when firms are managed by individuals with university degrees or by men. Our findings underscore the importance of fostering collaboration between public and private sectors, as well as financial and academic institutions, to support MSME management during crises—a necessity highlighted by current circumstances, where such events are becoming increasingly frequent due to natural and geopolitical factors.
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