Barriers to small-scale private equity

This study examines the barriers preventing Australian small and medium-sized enterprises (SMEs) from accessing small-scale private equity (SSPE) markets. Using a mixed methods approach of survey, interviews, and archival research, the findings reveal that 46% of SMEs are interested in seeking equity funding, contrary to expectations based on capital structure theories. However, there is a mismatch between the supply and demand for SSPE, with very few SMEs able to meet the stringent investment criteria of private equity (PE) firms. This is a practitioner version of Dwyer, Duncan, and Southam (2020) published in the Accounting Research Journal