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FACTORS AFFECTING ACCESS TO FINANCE: THE CASE OF SMALL AND MEDIUM ENTERPRISES (SMEs) OF BANGLADESH

The USV Annals of Economics and Public Administration

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Title FACTORS AFFECTING ACCESS TO FINANCE: THE CASE OF SMALL AND MEDIUM ENTERPRISES (SMEs) OF BANGLADESH
 
Creator Mohammed Chowdhury; Touro College and the University System, New York.
Zahurul Alam; University of Chittagong
 
Description Abstract: This study addresses the factors that affect small and medium enterprises in having access to finance from the financial institutions. To achieve the objectives of the study survey data were collected from a sample of 86 SMEs to investigate the problems and suggest policy recommendations. Data were collected by direct interview method with the help of a questionnaire for self-guidance. Secondary data were also used for this purpose.  Findings revealed that the size and age of the firms, education and skills of the owners, and unfavorable credit terms such as high interest rates, lack of collateral security, corruption by bank officials etc. are some of the biggest hurdles that SMEs in Bangladesh face in getting loans from financial institutions. The limitation is that the study has included one city in its sample population. A nationwide study where there are SMEs in large numbers could lead to better results for this kind of study. The implication is that small businesses face funding limit and are discriminated against in credit markets, which leads to large firms crowding out smaller firms in the market. Built on current literatures and research on SMEs, specially in regard to their ability to access finance, this study captures the information relating to problems identified by SMEs in having access to finance and facilitating the identification of implementable recommendations and approaches necessary for strengthening the SMEs access to finance for their expansion and growth.   Keywords: small and medium-sized enterprises, finance, collateral, entrepreneurial skills, corruption, bureaucracy.   JEL Classification:  G00,   M 13, M 19    
 
Publisher Editura Universitatii Ştefan cel Mare din Suceava
 
Contributor —
 
Date 2018-02-26
 
Type —
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Format application/pdf
 
Identifier http://www.seap.usv.ro/annals/ojs/index.php/annals/article/view/1013
 
Source The USV Annals of Economics and Public Administration; Vol 17, No 2(26) (2017); 55-68
The USV Annals of Economics and Public Administration; Vol 17, No 2(26) (2017); 55-68
 
Language en