Access to finance and SMEs’ trade credit: evidence from a regression discontinuity design

Yang, Wei; Li, Haiyang; Kong, Gaowen; Kong, Dongmin

doi:10.1111/acfi.12691

Cited by 13 publications

(5 citation statements)

References 66 publications

(74 reference statements)

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“…It also extends the antecedents of opportunity recognition beyond self-efficacy, prior knowledge, social networking and prior opportunity availability perceptions (Wang et al , 2013). Moreover, we added to the individual-level predictors of AF in the SME sector, in addition to external factors (Aminu and Shariff, 2015; Wasiuzzaman et al , 2020; Yang et al , 2021), where the role of financial literacy was gauged (Hussian et al , 2018).…”

Section: Theoretical Contributionsmentioning

confidence: 99%

“…However, research regarding the factors that lead to limited financial resources for SMEs is still in its infancy. Only a few studies have been conducted that mostly investigated external- and firm-level antecedents (Aminu and Shariff, 2015; Wasiuzzaman et al , 2020; Yang et al , 2021). Concerning the individual-level factors, financial literacy is the only examined predictor of AF in SMEs (Hussain et al , 2018).…”

Section: Introductionmentioning

confidence: 99%

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I can see the opportunity that you cannot! A nexus between individual entrepreneurial orientation, alertness, and access to finance

Bilal

Fatima

Iqbal

et al. 2022

EBR

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Purpose The purpose of this study is to demonstrate how alertness enable small and medium scale enterprise (SME) owners to leverage their individual entrepreneurial orientation (IEO) such as risk-taking, pro-activity, innovation, passion and perseverance in a better way to recognize opportunities for financial resources as compared to their counterparts who are not alert. Moreover, it elaborates on the mediating role of opportunity recognition of financial resources between IEO and SMEs’ access to finance (AF). Design/methodology/approach A three-wave time-lagged survey from a stratified sample of 271 small and medium scale business owners in Pakistan was conducted and the data were analysed using PROCESS models 1 and 4. Findings The findings grounded in the theory of Action Regulation, signify that the IEO of small and medium scale business owners helps them attain financial resources through opportunity recognition capacity which is an action characteristic. Moreover, the IEO of SME owners, coupled with entrepreneurial alertness (EA; a cognitive pre-action state), amplifies their ability to recognize opportunities for financial resource availability. Originality/value This is one of the initial studies to test the IEO scale, including passion and perseverance. Moreover, it has added to the individual-level antecedents of AF in small and medium scale businesses through the role of EA and opportunity recognition.

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Section: Theoretical Contributionsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

I can see the opportunity that you cannot! A nexus between individual entrepreneurial orientation, alertness, and access to finance

Bilal

Fatima

Iqbal

et al. 2022

EBR

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show abstract

“…Given the constraints to which they are subject, many companies resort to alternative means of financing, namely trade credit, which is more expeditious, albeit at a higher cost in many circumstances. SMEs mostly resort to trade and bank credit, since access to the capital market is limited to large companies in many circumstances (Wang et al 2021;Yang et al 2021).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Bank Credit and Trade Credit: The Case of Portuguese SMEs from 2010 to 2019

Pinto

Henriques

Cardoso

et al. 2023

JRFM

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Small companies face significant difficulties in accessing finance, and the use of bank credit and trade credit are the primary sources of financing, specifically in small countries, with little market liquidity, and focused on the banking system, as is the case of Portugal. The main objective of this article is to identify significant drivers of bank and trade credit, as well as investigate the complementary or substitutive relationship between them, considering that both constitute an essential source of financing for small and medium-sized enterprises (SMEs). The sample comprises 5860 companies, and the analysis was performed using panel data methodology (2010–2019). The results suggest that, during the period in which the financial crisis was most felt in the country (2010–2013), companies intensified their demand for trade credit, and in the following years for bank credit. Our evidence does support the substitution hypothesis between trade and bank credit.

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“…There are two dimensions of access to financial services. The first one is the demand-side and the second is the supply side (Nega & Hussein, 2016;Yang et al, 2020). The dimension of the demand-side considers the option made by an individual in connection with services offered by the financial institutions (Tefera, 2019), on the other hand, the supply side discusses the financial intermediation or provision of financial services (Brixiová et al, 2020).…”

Section: Inmentioning

confidence: 99%

Critical Factors Associated With the Access to Bank Credit: An Exploratory Study

Elahi

Ahmed

Majid

et al. 2021

HSSR

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Purpose of the study: The purpose of the current study is to get subjective information from SMEs about their views and elicit the experience of getting loans and why not getting loans. Methodology: This study has been used qualitative research and findings have been gathered using face-to-face in-depth semi-structured interviews. Main Findings: Findings showed that there are two types of SME firms categorized in 1) Firms that are willing to take a loan but unable to get them and 2) Firms that have access to finance but don’t want to obtain them, different themes have been extracted from the aforementioned categorization. Applications of this study: This research can be effective to develop an economy in terms of employment generation, human resource development, value addition, poverty alleviation, income equality, entrepreneurial culture, and innovation, and Pakistan is no exception in this regard. Novelty/Originality of this study: The study is contributing to running a manufacturing unit, usually a large land area is required. Moreover, business locations are preferred near to markets for ease of doing business. Since all these preferred choices require a lot of money to incur for capital expenditure which is hardly available for SMEs.

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Access to finance and SMEs’ trade credit: evidence from a regression discontinuity design

Cited by 13 publications

References 66 publications

I can see the opportunity that you cannot! A nexus between individual entrepreneurial orientation, alertness, and access to finance

I can see the opportunity that you cannot! A nexus between individual entrepreneurial orientation, alertness, and access to finance

Bank Credit and Trade Credit: The Case of Portuguese SMEs from 2010 to 2019

Critical Factors Associated With the Access to Bank Credit: An Exploratory Study

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