Financing of Small and Medium-Sized Enterprises: A Supply-Side Approach Based on the Lending Decisions of Commercial Banks

The objective of this paper is to determine the primary issue causing commercial banks to lend to SMEs. Indeed, this paper focuses on the supply side approach to bridge the research gap in understanding the financing lacuna, which has often been overlooked due to the tendency to analyse financing gap from the demand side only. The paper discusses the nature of the decision-making process from interviews with bank loan officers utilising verbal protocol analysis to give insights into the decision making of bank loan officers in the processing of bank funding proposals. To achieve the objective of the study, we used a qualitative research approach characterised by the collection of information through semi-structured interviews with loan officers responsible for small and mediumsized enterprises of four (4) commercial banks in Cameroon. The information resulting from the transcription of interviews was analysed using content analysis. The result derived from the analysis revealed that confidence is the paramount issue urging commercial banks to grant loans to SMEs. Indeed, from existing embedded relationship overtime, commercial banks obtain valuable information about the behaviours of SMEs. Based on this information a certain degree of confidence and trust emerges causing banks to supply loans to SMEs. From the aforementioned analysis, we formulate: “The theory of confidence lending decisions of commercial banks.”

May the best man win

Purpose – The purpose of this paper is to examine how female bank lenders are locked into a position of disadvantage in a UK bank. The work of Bourdieu is used to explore women's position of disadvantage and inequality. As Bourdieu helps us predict, the women are symbolically constructed as different, and face different problems to men. Women's social capital is not perceived as the same as men's. Design/methodology/approach – The research method involved preliminary research interviews with seven key senior staff in the bank followed by focus group discussions with 35 male and female bank loan officers on bank premises within a nine-month period. Six focus groups were held – three with men and three with women in four British cities – London, Manchester, Bristol and Edinburgh. All the interviews were tape-recorded and analysed. The participants were told that the discussion was completely confidential, and that we were interested in the role gender played in entrepreneurial and corporate life. Findings were verified by taking them back to a selection of those who had been involved in the focus groups. Findings – The findings show how the power dynamics are played out within the immediate workplace environment and influenced by the wider macro systems of society. The women differed in their views as to whether gender mattered. Despite the evident inequities these women face, some wished to deny or resist being seen as unequal or wanted to acknowledge inequity. The paper explains how and why this might be the case. Research limitations/implications – The research is limited by its sample size to 35 bank loan officers. Practical implications – The paper demonstrates some of the difficulties faced by those who wish to implement equality of opportunity in the face of women's denial of inequality. Social implications – The paper clearly illustrates the difficulties and challenges faced by female bank loan officers in banking. Originality/value – This paper discusses the subjective experience of equality, inequality and exclusion among female bankers showing how they are not a homogenous group, as they say they experience equality/inequality differently. These women face ideological dilemmas that are not widely discussed in the research literature. It is very unlikely that as a divided, heterogeneous group who find themselves in a very small minority in this bank, that greater equality for them is likely to come about.