The Impact of Demographic Factors on Accessing to Finance in Libya’s SMEs

Zarook, Tarek; Rahman, Mohammad Mafizur; Khanam, Rasheda

doi:10.5539/ijbm.v8n14p55

Cited by 16 publications

(16 citation statements)

References 33 publications

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“…Considering most scholars' perspectives on factors influencing SMME borrowing (Berger & Udell 2006;Chandler 2009;Fatoki 2013;Fatoki & Asah 2011;Haron et al 2013;Makhbul 2011;Mutoko & Kapunda 2015;Myers 1984;Nguyen & Luu 2013;Sidik 2012;Zarook, Rahman & Khanam, 2013), the summary of main characteristics that influence borrowing include firm income (net profit or annual turnover) and owner's marital status, gender, highest education qualification and number of years in position.…”

Section: Empirical Literature On the Factors Influencing Small Mediumentioning

confidence: 99%

Factors influencing small, medium and micro-sized enterprises’ borrowing from banks: The case of the Botswana manufacturing sector

Mutoko

Kapunda

2017

Acta Commercii

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The objective of the study: The main objective of this study is to determine the factors that influence manufacturing small, medium and micro-sized enterprises’ (SMMEs) borrowing from banks.Problem statement: This article examines factors that affect SMMEs’ ability to borrow money from commercial banks. Empirical evidence was collected from manufacturing SMMEs.Motivation for the study: There is a scarcity of studies on factors influencing borrowing among Botswana manufacturing SMMEs.Methodology: The study employed both qualitative and quantitative research designs. The random stratified sampling technique was used to draw a sample of 100 manufacturing SMMEs from a population of 329 registered manufacturing SMMEs in Botswana. Descriptive and inferential statistics were used to analyse the data. Furthermore, multivariate logistic regression estimation was used to obtain the main objective.Main findings: The empirical results showed that longevity in position and annual turnover have positive impact on getting access to bank loans, while marital status has a negative effect on access to bank loans.Practical implications: An understanding of factors influencing borrowing can increase chances of an SMME gaining financing from commercial banks, thus solving the challenge of access to finance.Contributions: The results are significant to SMMEs, policymakers, the banking sector and other researchers. Furthermore, this study increases literature on SMME challenges and financing logistics.

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Section: Empirical Literature On the Factors Influencing Small Mediumentioning

confidence: 99%

Factors influencing small, medium and micro-sized enterprises’ borrowing from banks: The case of the Botswana manufacturing sector

Mutoko

Kapunda

2017

Acta Commercii

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“…Hence, managers with higher business experience find it easier and have a relatively more advantageous position in terms of accessing finance. Following this line of thought and some previous studies (Brush et al 2009;Zarook et al, 2013), the variable Experience describing the top manager's years of work experience is included.…”

Section: Independent Variablesmentioning

confidence: 99%

Türkiye’de Frmaların Finansmana Erişiminin Belirleyicileri Nelerdir?

Özşuca¹

2020

TurkishStudies

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The relationship between the financial sector and private non-financial sector deserves particular attention given the incontestable importance of the private sector as an engine of economic growth and job creation. Notwithstanding this importance, however, the evidence is highly suggestive that Turkish firms are confronted with obstacles in accessing formal financial services. Along these lines, this paper provides new empirical evidence for the determinants of access to finance by the enterprises in Turkey. In particular, the study investigates some enterprise-specific characteristics that may have an impact on a firm's ability in accessing finance to scrutinize whether Turkish firms are credit constrained. The empirical analysis is based on micro level data from the World Bank's Enterprise Survey for the fiscal year 2019. Three different measures of credit constraint are computed; a subjective measure based on perception and two objective measures based on the usage of formal financial services and direct information on credit constraints. Employing both subjective and objective measures of credit provide means for assessing the extent to which and how key determinants among firms' characteristics displays variation between enterprises categorized by alternative credit constraint measures. Overall, the findings of the study reveal that the age of the firm, experience of the current manager, female/foreign participation in ownership and exporter status are found to be significantly associated with the firm's access to finance. Notably, the results display several differences in underlying firm level factors for credit situation among subcategories based on alternative credit indicators. The findings of the study are of remarkable importance for designing policy to improve firms' credit constraints and advance bank-firm connectedness in Turkey.

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“…Business experience can affect MSSEs' access to finance in the sense that small business that have been in existence for a short period of time may find it difficult to access finance because they have not been tried and tested compared to their counterparts that have been in existence for longer (Zarook, Rahman, & Khanam, 2013). So, young and small firms appear to face more serious financial constraints relative to those that are larger and more established(World Bank Group, 2015).. That is why younger enterprises report higher financing obstacles even after controlling for other firm characteristics (Beck, 2007).…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, irrespective of its source, whether raised internally by MSSEs owners or externally through credit, finance is needed to start and expand business. Thus, to identify literature based variables, systematic review was carried out on studies made by Alhassan & Sakara, 2014;Awlachew & Motumma, 2017;Elly & Kaijage, 2017;Fufa, 2016;Gamage, 2013;Gebru, 2009;Haron, Said, Jayaraman, & Ismail, 2013;Kebede, Tirfe, & Abera, 2014;Kira & He, 2012;Kung'u, 2011;Kuruppu & Azeez, 2016;Makina, Fanta, Mutsonziwa, Khumalo, & Maposa, 2015;Manaye & Tigro, 2017;Marwa, Micro, 2014;Mashenene, 2015;Mersha & Ayenew, 2017;Mole & Namusonge, 2016;Nguyen & Wolfe, 2016;Nega & Hussein, 2016;Nguyen, Gan, & Hu, 2015;Nkuah, Tanyeh, & Gaeten, 2013;Osano & Languitone, 2016;Waari & Mwangi, 2015;Zarook, Rahman, & Khanam, 2013) in which the detail review is discussed in the literature part.…”

Section: Introductionmentioning

confidence: 99%

Determinants of Micro and Small Scale Enterprises’ financing preference in line with POH and Access to Credit: Empirical Evidence from Entrepreneurs in Ethiopia, Benishangul-Gumuz Regional State

Meressa¹

2020

Preprint

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The purpose of this study was to examine factors that determine micro and small scale enterprises’ financing preference in line with pecking order theory and access to credit in Benishangul-Gumuz Regional State of Ethiopia. The study used primary data collected using cross sectional survey questionnaire. The sample of this study was 296 enterprises selected using proportional stratified random sampling technique. The data was analyzed using descriptive and logistic regression analysis. Accordingly, the results of logistic regression revealed that business experience, collateral, gender, motivation and enterprises’ sectoral engagement affect financing preference of enterprises in line with pecking order hypothesis. To investigate access to credit determinants, only enterprises that need to raise capital through credit were considered. As a result, the logistic regression output revealed that business experience, size, sectoral engagement, collateral, interest rate, loan repayment period, financial reporting, preparation of business plan, location and educational background of entrepreneurs affect access to credit of enterprises. However, more evidence is needed on enterprises’ financing preference and access to credit determinants before any generalization of the results can be made for the fact that the empirical tests were conducted only on 296 entrepreneurs since 2019. Therefore, the findings are valid and practicable only for the entrepreneurs under the study and the results cannot be assumed to extend beyond this group of entrepreneurs to different study periods. Despite its limitations, the study makes an original contribution to the literature of small business finance by investigating determinants of micro and small scale enterprises’ financing preference in line with pecking order hypothesis and access to credit in Benishangul Gumuz regional state of Ethiopia as a developing country.

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The Impact of Demographic Factors on Accessing to Finance in Libya’s SMEs

Cited by 16 publications

References 33 publications

Factors influencing small, medium and micro-sized enterprises’ borrowing from banks: The case of the Botswana manufacturing sector

Factors influencing small, medium and micro-sized enterprises’ borrowing from banks: The case of the Botswana manufacturing sector

Türkiye’de Frmaların Finansmana Erişiminin Belirleyicileri Nelerdir?

Determinants of Micro and Small Scale Enterprises’ financing preference in line with POH and Access to Credit: Empirical Evidence from Entrepreneurs in Ethiopia, Benishangul-Gumuz Regional State

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