Abstract

During the last years, many Latin American countries have developed public instruments to support smaller companies in order to solve asymmetric information regarding the real benefits and risks of the projects of these companies. Such asymmetric information has repercussions on high interest rates and credit rationing which makes more difficult for these companies the take off. In this context, the Chilean Government through SERCOTEC (Service for Technical Cooperation) introduced since 2005 to date a SCP (Capital Seed Program) that seeks to solve, to some extent, funding problems that the small and medium enterprises (SME) face in Chile. This paper seeks to measure the impact of the SCP of SERCOTEC on small businesses in Chile.

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