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This paper empirically tests, examines, and compares, the financing issues of small businesses operating outside major population centers in two regions - New Zealand (Canterbury and South Canterbury) and Canada (Cities of Thunder Bay, Ontario and Nelson, Brits Colombia). This study contributes significantly to the SME literature by providing one of the first empirical tests analyzing specific business issues confronting small-community-regional-centre small businesses. Canadian and New Zealand small firms are compared to provide an empirical foundation for widely held models of on small and medium enterprise (SME) capital structure decisions - data from 130 SMEs were collected from each country.
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