... 1993). The Economics of Small Business Finance: The Roles of Private Equity and Debt Markets in the Financial Growth Cycle Allen N. BergerBoard of Governors of the Federal Reserve SystemWashington, ... Banking and FinanceVolume 22, 1998AbstractWe examine the economics of financing small business in private equity and debt markets. Firms are viewedthrough a financial growth cycle paradigm in ... provide the bulk of the fund’s returns.IV. The Role of Private Debt Markets in Small Business FinanceWe next turn to the private debt markets that finance small business. As discussed above, the...