scholarly journals Determinants of Bank-Tunisian SMEs Funding in a Context of Information Asymmetry

2021 ◽  
Vol 13 (1) ◽  
pp. 1
Author(s):  
Syrine Ben Romdhane ◽  
Emna Jebali
Keyword(s):  
Asymmetric Information ◽  
Interest Rates ◽  
Small And Medium Enterprises ◽  
Positive Signal ◽  
Net Worth ◽  
International Bank ◽  
Theoretical Assumptions ◽  
Trade Credits ◽  
Medium Enterprises ◽  
Linear Regressions

This paper explores the determinants of access to finance for small and medium enterprises (SMEs) in the context of asymmetric information. Our sample consisted of 250 Tunisian SMEs financed by Arab International Bank of Tunisia, broken down by sector of activity, size and region. The results of multiple linear regressions showed that size, interest rate, trade credits and profitability have a significant influence on the total volume of credit. The bank considers the size of commercial and industrial SMEs, and those located in the District of Tunis and the Center-East, as a positive signal when considering a loan. The bank also considers high interest rates when considering loans to commercial SMEs, microenterprises and SMEs located in the District of Tunis. As far as innovation is concerned, the results showed that service SMEs, micro-enterprises and SMEs located in the District of Tunis and in the Center-East, find it difficult to get a credit. It is interesting to note that the bank neglects liquidity issues and the net worth of the SME in its financing decision, which contradicts the theoretical assumptions. Finally, we conclude that bank's financing of Tunisian SMEs is characterized by conditions dominated by the problem of asymmetric information.

scholarly journals DIGITAL DIVIDE OF SMALL AND MEDIUM-SIZED ENTERPRISES: AN ANALYSIS OF INFLUENCING FACTORS USING THE TOE THEORY

2017 ◽  
Vol 18 (2) ◽  
pp. 15-48 ◽  
Author(s):  
CESAR ALEXANDRE DE SOUZA ◽  
ÉRICA SOUZA SIQUEIRA ◽  
NICOLAU REINHARD
Keyword(s):  
Digital Divide ◽  
Small And Medium Enterprises ◽  
Mortality Rates ◽  
Structural Equations ◽  
Second Order ◽  
Adoption Model ◽  
Medium Enterprises ◽  
Effective Use ◽  
Methodological Aspects ◽  
Linear Regressions

ABSTRACT Purpose: This study describes the phenomenon of digital divide in small and medium enterprises in Brazil by means of an indicator of ICTs use in these organizations. Originality/gap/relevance/implications: There are several studies on the adoption of ICTs by organizations, however rare are those that explore the topic using the concept of digital divide. This study addresses the second order digital divide, related to the effective use of ICTs by companies. Key methodological aspects: The study was carried out based on a sample of 3,231 companies participating in the "TIC Empresas" survey of 2014 (published in 2015). By means of structural equations, an index was created to measure the intensity of the ICTs use in organizations and factors that affect it were verified through linear regressions. Summary of key results: The first result concerns the feasibility of an index that measures the ICTs use. Then, when analyzing its distribution, we can see the discrepancy of values between companies in relation to their size. The regression analysis indicates that the access to technology and the Internet, as well as ICTs skills and attitudes are factors correlated to a more intense use of ICTs by organizations. Key considerations/conclusions: Digital divide is a phenomenon related to high enterprise mortality rates and low productivity in small and medium-sized enterprises. This study outlines a possible way to study this phenomenon, integrating an adoption model (TOE) and a model of ICTs use in the context of second order digital divide.

scholarly journals Innovative solutions to tap “Micro, Small and Medium Enterprises” (MSME) market

2019 ◽  
Vol 27 (1) ◽  
pp. 38-52
Author(s):  
Muhammad Mohsin Hakeem
Keyword(s):  
Financial Institutions ◽  
Emerging Economies ◽  
Risk Sharing ◽  
Small And Medium Enterprises ◽  
Profit Sharing ◽  
Islamic Banks ◽  
Collaborative Model ◽  
Content Type ◽  
Net Worth ◽  
Medium Enterprises

Purpose The purpose of this paper is to indicate an innovative solution to address the financing issues faced by “Micro-, Small and Medium Enterprises” (MSME) in emerging economies. Design/methodology/approach Islamic Financial Institutions (IFIs) especially Islamic banks are competing for high net worth individuals, whereas the MSME sector is largely untapped. A collaborative model for IFIs is suggested, to explore the MSME sector. Islamic Non-Banking Financial Institutions (NBFIs) are operating in these markets through their extensive gross route networks. The multistep collaborative model proposes “Special Purpose Entity (SPE)” partially owned by a single Islamic Bank or consortium and NBFI/s. SPEs can be incorporated with a defined scope, focus areas, risk profile, budget and shareholding patterns. Findings Risk and profit sharing instruments also known as Musharakah and Mudarabah have less than 6 percent share within total financing offered by Islamic banks globally. Risk sharing products offered by Islamic banks are not targeting this sector due to the underdevelopment of instruments, lack of knowledge and resources. Proposed SPEs can operate regionally with a concentration on specific business sectors. Originality/value The SPE model would enable Islamic banks to enter the huge MSME market while mitigating risk. On the contrary, it would enable the large segments of emerging economies (bottom 40 percent population of developing nations) to get involved and actively play their role to attain long-term development goals.

scholarly journals The factors affecting accessibility to credit capital of small and medium enterprises in Vietnam

2019 ◽  
Vol 15 (6) ◽  
pp. 15-25
Author(s):  
Phung The Dong ◽  
Nguyen Thi Hong Nham
Keyword(s):  
Interest Rates ◽  
Small And Medium Enterprises ◽  
Probit Model ◽  
Bank Loans ◽  
Bank Loan ◽  
Factors Affecting ◽  
Business Loan ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

The difficulty in accessing loans is one of the major barriers to the development of small and medium enterprises (SMEs) in Vietnam. Low accessibility to capital forces SMEs to spend both official and unofficial costs in order to obtain loans, and/or to access the unofficial market at higher interest rates, thereby increasing cost of production of enterprises. Studies suggest that the determinants of bank loan processing through which small and medium enterprises can access official loans include: characteristics of enterprises; indicators, reflecting the performance of enterprises; characteristics of loans; characteristics of enterprises, enterprise owners; geographical position of enterprises; the creditworthiness of enterprises and the role of the network.Purpose of the study.The aim of this paper is the quantitative analysis of the factors, affecting accessibility to credit capital of small and medium enterprises in Vietnam.Materials and methods.This study was conducted on the basis of a survey in December 2017. The survey includes 301 enterprises in Hanoi city. Selected enterprises are also enterprises, surveyed in the annual enterprise survey by the General Statistics Office of Vietnam. This paper uses the Probit and Logit regression approach to estimate the impact of factors, affecting the disbursement probability of a loan of an enterprise. The number of SMEs accounts for 56.69% of the samples. The number of enterprises, applying for a bank loan accounts for 58.4% of the total samples, of which the percentage of disbursed loans for SMEs accounts for only 47.3%. For enterprises without a bank loan, eliminating the reasons for the lack of demand and unwish to be in debt, the main reasons not to access bank loans are high interest rates, complicated loan procedures and insufficient collateral.Results.The results obtained from the Logistic and Probit models show that the estimated coefficients are statistically significant, affecting the probability of taking a business loan, accepted by financial institutions. Although the coefficients, estimated from Logistics model are larger than those estimated from the Probit model, the estimated results show that the direction of impact of the variables in two estimation techniques gives quite similar results.Conclusion.Based on the results of this study, the Government of Vietnam should implement policies to support SMEs in the direction of improving their access to capital. The credit institutions should design products and services suitable to the characteristics of SMEs in Vietnam.

scholarly journals Pengembangan Nata de Coco ala UD Citra Rasa

2021 ◽  
Vol 2 (2) ◽  
pp. 64-73
Author(s):  
Muhamad Fitrah Arjuna ◽  
Dedi Junaedi
Keyword(s):  
Production Process ◽  
Financial Management ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Financial Reports ◽  
Net Worth ◽  
Study Approach ◽  
Online Sales ◽  
Home Based ◽  
Medium Enterprises

Micro, small and medium enterprises or MSMEs refer to the types of small businesses that have a net worth of at most Rp. 200 million, excluding land and buildings where the business is located. MSMEs have proven to be resilient and able to withstand the economic crisis and monetary crisis in Indonesia. This paper aims to analyze UD Nata de Coco Citarasa in Bogor. The method used is descriptive qualitative analysis with a case study approach, observation and interviews. The result is . which is named the image of the taste of nata de coco, with the results of my interview with the owner that UD Nata de Coco is managed with a very simple management. Starting from the production process to marketing, and the production process is still using manually, there are no modern machines. Only use the tools in the kitchen in the production process. Marketing of their products is still not widespread, only by selling to small shophouses, and using word of mouth information, not using a separate website such as online sales. As a home-based business, financial management is still modest, not yet systematically following accounting standards. The financial reports are still integrated with the family finances.

Financial Instruments for Small and Medium Enterprise Sustainable Growth

2018 ◽  
pp. 276-293 ◽  
Author(s):  
Carlos Salcedo-Perez ◽  
Andres Carvajal Contreras
Keyword(s):  
Interest Rates ◽  
Latin American ◽  
Small And Medium Enterprises ◽  
Sustainable Growth ◽  
Raw Material ◽  
Financial Instruments ◽  
Difficult Situation ◽  
Access To Credit ◽  
Medium Enterprise ◽  
Medium Enterprises

Financing is a key issue for companies to grow. In Latin America, small and medium enterprises face difficult challenges when trying to get the necessary resources they need to grow or just stay in the market. From excessive paperwork to high interest rates, difficult access to credit is a challenge that has prevented companies from growing, reaching new markets, or just surviving in the markets during the first stages of operation. This, consequently, has an impact on the economic development of the region. The current macroeconomic situation, characterized by the end of a raw material boom, brings an additional issue to a normally difficult situation. This chapter therefore analyzes the current situation of five Latin American emerging economies and then presents a set of financial instruments that could help SMEs to get resources easily.

IFRS for SMEs

2015 ◽  
pp. 295-317
Author(s):  
Márcio Iris de Morais ◽  
Clea Beatriz Macagnan
Keyword(s):  
Continuing Education ◽  
Professional Education ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Descriptive Analysis ◽  
The State ◽  
Mato Grosso ◽  
Theoretical Assumptions ◽  
Level Of Difficulty ◽  
Medium Enterprises

In this chapter examines the perception of accountants in the State of Mato Grosso, from Brazil, on continuing professional education on IFRS applied to small and medium enterprises - SMEs. After the introduction, where we present this chapter, we contextualize the theory of human resources, with theoretical assumptions. In the next item, we revise of Brazilian accounting standards for SMEs and their regulatory environment. The literature review is completed with the item that addresses content on continuing education. The next step we present the methodology and the date analysis. To collect the evidence, we used questionnaires to accountants responsible for active financial services companies in the State of Mato Grosso. With a sample of 302 responses from a population of 1597 organizations, a descriptive analysis using frequency distribution, measures of central tendency and variability was performed. It is concluded that the perception of accountants indicates that they recognize the possibility of improvement in job performance, as well as greater employability and income. They still set regular level of difficulty in the submission of financial statements in accordance with the new standard: IFRS for SMEs. The study indicates the need to offer continuing education, pointing the Regional Accounting Council and universities as important promoters in the process of qualification of accounting professionals.

scholarly journals Determinants of entrepreneurial small and medium enterprises performance with the interaction effect of commercial loans

2020 ◽  
Vol 14 (2) ◽  
pp. 161-173
Author(s):  
Muhammad Asif Khan ◽  
Asima Siddique ◽  
Zahid Sarwar ◽  
Le Thi Minh Huong ◽  
Qaiser Nadeem
Keyword(s):  
Interaction Effect ◽  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Cross Sectional ◽  
Content Type ◽  
Correlation And Regression Analysis ◽  
Trade Credits ◽  
Commercial Loans ◽  
Medium Enterprises ◽  
First Time

Purpose The purpose of this study is to investigate the interaction effect of commercial loans in between trade Credit, retain earning, and entrepreneurial small and medium enterprises (SMEs) performance. Design/methodology/approach In this research, the cross-sectional research design was used, and data were collected from 362 SMEs located in Pakistan by using a questionnaire. Correlation and regression analysis was adopted to establish the interaction effect of commercial loans in between trade credits, retain earning and entrepreneurial SMEs performance. Findings The results demonstrated that commercial loans, trade credit and retain earning have a positive relationship with entrepreneurial SMEs performance. The findings also confirmed the interaction effect of commercial loans in between retain earnings, trade credit and entrepreneurial SMEs performance. Originality/value The study examined the association and interaction effect of commercial loans in between retain earnings, trade credit and SMEs performance in the emerging state (Pakistan). So, this is the first time to study the relationship between these variables, which highly contributes to entrepreneurial SMEs literature.

scholarly journals Exploring the Impact of Inflation and External Debt on Economic Growth in Morocco: An Empirical Investigation with an ARDL Approach

2021 ◽  
Vol 11 (11) ◽  
pp. 894-907
Author(s):  
Sara EL ABOUDI ◽  
Imad KHANCHAOUI
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Economic Activity ◽  
Small And Medium Enterprises ◽  
External Debt ◽  
Added Value ◽  
Economic Competitiveness ◽  
Negative Effect ◽  
Medium Enterprises ◽  
The Impact

This article seeks to empirically assess the effect of inflation and external debt on economic growth in Morocco. The estimates cover the period from 1985 to 2019. The results from the ARDL model show that external debt negatively influences the country's growth in the short and long terms. Due to its direct effect, inflation slows down economic activity and leads to lower GDP growth. The econometric estimate indicates that the low level of inflation leads to difficulties in repaying debt and, consequently, reduced economic growth. Low inflation also hurts economic competitiveness among small and medium enterprises (SMEs). Although the inflation rate is lower than the interest rates, it reduces the profit margins of companies and leads to lower investment. The negative effect on economic competitiveness leads to decreased sectoral added value, reducing future economic growth rates. Based on the results, two main measures are proposed to mitigate the negative effect of inflation and debt on economic growth. First, we must develop better institutional and governance quality. The latter allows debt funds to be well spent on non-rent-producing sectors capable of reviving the Moroccan economy. Second, we have to look for good inflation, in other words, inflation that stimulates economic activity without creating economic distortions.

scholarly journals Formal financial institutions financing of immigrant small and medium enterprises in South Africa

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Francis T. Asah ◽  
Lynette Louw
Keyword(s):  
South Africa ◽  
Qualitative Research ◽  
Interest Rates ◽  
South African ◽  
Research Design ◽  
Financial Institutions ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Qualitative Research Design ◽  
Medium Enterprises

Orientation: Small and medium enterprises (SMEs) owned by immigrants in developing economies, such as South Africa, tend to trust formal financial institutions (FFIs) for financial support.Research purpose: Even though immigrant SMEs create opportunities that have important implications for the South African economy; less than 5% of them can access credit from FFIs. This study, therefore, explores the accessibility of credit from FFIs to immigrant SMEs from a supply-side perspective.Motivation for the study: Research studies on improving financing from FFIs to immigrant SMEs will help to boost the survival of immigrant SMEs and promote economic development in South Africa.Research design, approach and method: This qualitative research design used an interpretivistic research paradigm to achieve the research objectives. Data were collected from 16 purposively selected participants and analysed using the five-step process of content analysis outlined by Terre Blanche, Durrheim and Kelly.Main findings: The findings revealed that FFIs are uninterested and biased against considering financing immigrant SMEs and tend to charge them higher interest rates. Collateral, equity contribution and the possession of a South African permanent resident permit with a South African ID are the most important requirements that impact the willingness of FFIs to finance immigrant SMEs.Practical/managerial implications: Implications for the financial institutions in policy development were provided.Contribution/value-add: This research study highlights the requirements and the challenges faced by immigrant SMEs in accessing credit from FFIs. The use of qualitative research design further contributed to the literature on FFIs financing of immigrant SMEs.

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