Is there a credit-gap in a periphery? The perception of this problem by small entrepreneurs

The article seeks to contribute to the relatively neglected, yet recently expanding, body of financial geography literature. It examines the propositions of the theory of regional segmentation of financial markets, which - within a centralized financial system - foresees credit rationing for small businesses located in peripheral regions. The research methodology is based upon a case-study approach employed in the most peripheral municipalities in Moravia-Silesia region in Czechia. The contribution of this research lies in its focus upon the detailed investigation of the experience with credit applications of small entrepreneurs running a business in a periphery. The results show that the interviewed entrepreneurs do not perceive discrimination by the banks due to their peripheral location, but rather they face the problem that the value of their premises, when setting them as collateral, is significantly underestimated.