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.This article aims to characterize financing decision-making processes in SMEs belonging to the cultural and creative sector of the city of Bogota (Colombia), analyzing these processes in the light of the main theories of capital structure documented in the financial literature since the 1950s. To this effect, an empirical analysis methodology focused on behavioral factors is carried out through the application of surveys and interviews to the target population. Then, results are compared with the assumptions of the financial theories. As a result, it was found that, in the case of the cultural and creative SMEs in Bogotá, financing decision-making process is somewhat similar to that stated by the theories of pecking order, business strategy, free cash flow, and behavioral finance; nevertheless, there are differences associated with contextual factors such as needs, preferences, competitiveness, and availability of funding sources. On the other hand, the theories of trade-off, signaling, and static equilibrium differ largely from the results found in this study.

Paula Andrea Navarro Pérez, Fundación Universitaria Los Libertadores

Assistant Professor, Department of Accounting, Faculty of Economic, Business, and Accounting Sciences, Fundacion Universitaria Los Libertadores, Bogotá, Colombia. Bachelor’s degree in Accounting, Universidad Nacional de Colombia, Colombia, Master of Business Administration, Purdue University, West Lafayette, United States of America. 

Navarro Pérez, P. A. (2020). Financing Decisions for Creative and Cultural SMEs in Bogotá, Colombia. Cuadernos De Administración, 36(66), 92–104.
Received 2019-08-20
Accepted 2020-02-27
Published 2020-01-15