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Small World

Bigger isn't always better.

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This story appears in the March 1998 issue of Entrepreneur. Subscribe »

A recent study by two university professors found that small start-up banks are more likely to lend to small firms than are older banks of similar size.

According to Lawrence Goldberg of the University of Miami and Lawrence White of New York University in New York City, from 1987 to 1994, small-business loans accounted for 13 percent to 21 percent of the total assets of three-year-old banks and only 8 percent to 10 percent of the total assets of similarly sized older institutions.

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