The Factors that Promote Business Growth Opportunities for SMEs in Latvia in Wholesale and Retail Trade Sector

Rizhamadze, Ketevan; Abeltina, Anna

doi:10.1007/978-3-030-85304-4_7

Cited by 2 publications

(1 citation statement)

References 17 publications

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“…A common characteristic among these businesses is their small size, limited resources and low capital investment. These characteristics can be a result of choice but in most cases it is a result of circumstances such as limited access to capital (Chao & Tao, 2023;Rasyid, et al, 2023;Singh, et al, 2020;Adelekan, et al, 2019;Hartšenko & Sauga, 2013), which limits their growth opportunities (Rizhamadze & beltina, 2021;Manzoor, et al, 2021). Micro-enterprises are typically owner operated, family owned (Harvie, 2003), and may employ a small number of employees who at times lack education and business acumen because those experienced and educated may not be interested in working in these micro-enterprises.…”

Section: Overview Of Micro-enterprisesmentioning

confidence: 99%

Deciphering financing models of micro-enterprises in Ruwa, Zimbabwe: Investigating the implications of usury

Chingwaro

2024

IJRP

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This study focuses on the different financing models employed by micro-enterprises in Ruwa, Zimbabwe, particular emphasis being on investigating implications of usury loans. Pecking Order Theory was adopted as the basis for research objective generation and for literature review on exploration of the financing preferences and sources of finance for micro-enterprises. Qualitative research design was employed wherein in-depth interviews were conducted on 30 purposively selected participants and results show that micro-enterprises in Ruwa heavily rely on informal financing due to lack of formal financial institutions to cater for micro-enterprises unique needs.Micro-enterprises normally resort to usurious loans as a last resort measure, when in emergency and needing working capital. However, these usurious lending practices pose sustainability challenges in the long-run, in the form of suppressed profitability and limited possibilities for growth. Micro-enterprises require full support from government as they provide significant contributions to the economy such as employment generation and poverty reduction, and based on findings of the study, it is concluded that government should at least craft and implement encouraging policies to support micro-enterprises, and formal financial institutions such as commercial banks and microfinance institutions should be flexible enough and reconsider their perceptions on high-risk customers such as micro entrepreneurs. Finally, the study recommends that the government continue to enhance its support on micro-enterprises through capacitation of the already available financial institutions and establishing more financial institutions targeting micro-enterprises especially those run by the youths, women and the rural poor.

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Section: Overview Of Micro-enterprisesmentioning

confidence: 99%

Deciphering financing models of micro-enterprises in Ruwa, Zimbabwe: Investigating the implications of usury

Chingwaro

2024

IJRP

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Credit Financing of Micro-Enterprises and Farmers by Commercial and Cooperative Banks in Poland: Does the Use of Investment and Working Capital Loans Change During the COVID-19 Pandemic?

Wielechowski,

Zając,

Czech

2023

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Purpose – The paper aims to assess the credit financing of microenterprises and farmers by commercial and cooperative banks in pre-COVID-19 and COVID-19 subperiods. Research method – In the study, we apply the Kruskal-Wallis test and Wilcoxon ranksum pairwise comparison test with the adjustment based on the Benjamini and Hochberg method to check whether there are significant differences in median values of banking loan categories for microenterprises and farmers among commercial and cooperative banks in the pre-COVID-19 and COVID-19 periods. Results – We observe that microenterprises mostly use commercial banks, while farmers depend majorly on cooperative banks. Additionally, farmers use investment loans more often than microenterprises. We show a significant decline in loan sales and enquiries among microenterprises and farmers during COVID-19. Moreover, we observe the median values of all analysed categories show significant differences between commercial and cooperative banks. It concerns both investment and working capital loans. Originality /value /implications /recommendations – Our contribution is that we analyse this issue from the perspective of leading suppliers offering banking loans, i.e., commercial and cooperative banks. We detect whether analysed banking loan categories differ significantly in the group of microenterprises and farmers across commercial and cooperative banks in Poland in the above-mentioned periods. To our knowledge, there are no similar studies. The results of our study might be helpful for banking institutions and policymakers in the context of a potential future pandemic or crisis situation.

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The Factors that Promote Business Growth Opportunities for SMEs in Latvia in Wholesale and Retail Trade Sector

Cited by 2 publications

References 17 publications

Deciphering financing models of micro-enterprises in Ruwa, Zimbabwe: Investigating the implications of usury

Deciphering financing models of micro-enterprises in Ruwa, Zimbabwe: Investigating the implications of usury

Credit Financing of Micro-Enterprises and Farmers by Commercial and Cooperative Banks in Poland: Does the Use of Investment and Working Capital Loans Change During the COVID-19 Pandemic?

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