Medium-sized Enterprise Financing Research Articles

Strengthening access to finance for women-owned SMEs in developing countries

Purpose – The purpose of this paper is to highlight key trends, challenges, and opportunities for advancing women’s entrepreneurship and increasing their access to finance. Design/methodology/approach – Due to their high-growth potential, women-owned SMEs in developing countries are of particular interest. The International Financial Corporation and McKinsey built a detailed database for micro-, small-, and medium-sized enterprises. The data derived from the readily available global data sets provide coverage of a large number of countries and national statistics. Findings – Since financing is an important means by which to pursue growth opportunities, addressing the specific needs of women entrepreneurs (WE) in accessing finance must be part of the development agenda. Practical implications – This paper offers valuable practical insights to policy makers to establish a supportive, enabling environment that will facilitate access to financial services for WE in their respective countries; lead efforts to identify, evaluate, and support the replication of successful models for expanding financial services to WE; and lead efforts to gather gender-disaggregated data on small-, and medium-sized enterprise finance in a coordinated fashion. Originality/value – The value of this paper is that it offers insightful information about key trends, challenges, and opportunities for advancing women’s entrepreneurship and increasing their access to finance.

Financial Management Challenges In Small And Medium-Sized Enterprises: A Strategic Management Approach

Abstract :Due to their significant role in creation of new jobs, rise in GDP, entrepreneurship and innovation, small and medium-sized enterprises (SMEs) are recognized as the the drivers of socio-economic growth, both in developed and developing economies. In Turkey, 99.9 % of all enterprises fall into SME category. Therefore, the significance of SMEs for Turkish economy and society is much higher in Turkey, compared to other emerging and developed countries. Small and medium-sized companies are faced with a number of challenges whereas the problems arising from “poor financial management” are reported as the major causes of business failures in SMEs. Strategic financial management (SFM) which is a research area that has attracted the interest of researchers after 2010, is one of the key managerial areas of SMEs, due to its vital role on the survival, growth and performance of SMEs. The purpose of this paper is to analyze the central role of financial management and identify the financial management challenges and practices that influence the organizational performance in Turkish SMEs, from a strategic management perspective. Within the course of this paper, the importance and challenges of SMEs in Turkey are presented in the first section, while the literature on strategic and financial management in SMEs are reviewed in the second part. In the third section, the recent strategic financial management concept, the implications of strategic financial management practices for SMEs in Turkey and the relationships between strategic financial management practices and SME performance, are discussed. Small and medium sized enterprise finance in Turkey is a developing research area, therefore this paper aims to make a significant contribution to the existing literature by analyzing the major challenges at the conduct of financial management in Turkish SMEs and the influence of strategic financial management practices on the performances of small and medium sized companies in Turkey.Additionally, the conceptual framework developed is expected to be useful to academics in developing an agenda for future empirical research.

How to leverage oil resources to enhance SME financing in South Sudan

The attention to financial sector development in development policy is currently shifting away from microfinance alone toward the development of inclusive financial markets more broadly under the rubric of 'finance for all'. This policy orientation underscores that financial inclusion is a requisite for economic development and poverty reduction. This paper draws on evidence from field research in South Sudan and Kenya on the role of financial sector development for small and medium-sized enterprise (SME) financing in these two countries. The analysis of the data indicates that distance from the capital city; firm size and gender of the firm owner significantly affect the likelihood of applying for a loan and receiving a loan. Institutional, regulatory and credit market imperfections stand in the way of expanding the access frontier in South Sudan. Drawing lessons from the Kenyan experience with regard to financial inclusion, the paper argues for enhancing linkages between rate of oil extraction and the financial sector development strategies. The aim is to harness South Sudan's oil wealth in promoting financial sector development in general and SME financing in particular.

Analysis on the Small and Medium-Sized Enterprise Financing Bank Loans Availability

Indirect financing is bank credit financing, this is the main source of funds of our country small and medium-sized enterprise.Fang Gang believes that the current urgent need to develop non state owned bank is an effective way to solve the financing of small and medium-sized enterprises.In a variety of exogenous financing channel of small and medium-sized enterprises, bank loan is one of the most important financing channel.This paper do empirical research about financing bank loans availability of small and medium-sized enterprise for to our country. The results show that, in general, enterprises in the credit rating, longer enterprise age, status of the enterprise market, enterprise's profit ability and provide collateral ability, enterprise is the enterprise and enterprise in the economy is more developed areas and other factors, has significant influence on enterprise ability to get loan.

The New Paradigm in Small and Medium-sized Enterprise Finance: Evidence from Turkish Banks

Over many decades, numerous cross-country studies and policy papers have argued that banks are not interested in lending to small and medium-sized enterprises (SMEs). In recent years, the visible transformation in the way that many banks are conducting business with SMEs suggests that a paradigm shift is taking place in SME finance. This country study contributes to the newly emerging literature on the subject by providing evidence on how this transformation is taking place in the Turkish banking sector. The findings of this research reveal that in Turkey, the large banks are not only allocating a bigger share of their loan portfolio to SMEs but are also reaching down to the smaller businesses more than the small banks are doing. These findings underline the importance of the large commercial banks for increasing SMEs’ access to finance in the Turkish economy.

Small and Medium-Sized Enterprises Financing: A Review of Literature

There is no doubt that access to finance is of crucial importance for the ongoing and sustainable growth andprofitability of small and medium enterprises sector (SMEs) through its role in facilitating the creation of newbusinesses and nurturing the innovation process as well as promoting the growth and development of existingbusinesses, which in turn, boost national economic growth. The main motive of this paper is that SMEssignificantly differ from large firms in terms of their financial decisions and behaviour. Hence, the purpose ofthis paper is to review the literature on the various financing sources of SMEs taking into account the effects ofboth SME characteristics and those of the owner–managers on SME financial behaviour.

Investing in R&D: small- and medium-sized enterprise financing preferences

This work adds to our understanding of financing decisions among owners of small- and medium-sized enterprises (SMEs), with particular reference to SMEs that conduct research and development (R&D). The work examines, conceptually and empirically, the forms of financing that are preferred by primary owners of SMEs that invest in R&D relative to preferences of owners of SMEs that do not conduct R&D. The work develops a conceptual rationale as to why SMEs engaged in R&D might hold particular preferences with respect to preferred sources of financial capital. Empirical analysis draws on large-scale survey data of actual applications for financing (as opposed to financing received) as reported by business owners and controls for systemic factors that include firm size and sector. Findings include that financing preferences do not follow a ‘one-size-fits-all’ prescription. Rather, preferences vary according to growth goals, the nature of ownership, age of firm, firm size and sector; however, it was also clear that firms that invest in R&D are much more likely to seek equity financing than otherwise comparable firms that do not invest in R&D.

Experience Reference from the Financial Support Practices for Japan’s Small and Medium-Sized Enterprises

The government-dominant financial system in Japan has exerted significant effects on the reconstruction of economy, the realization of industrial policy goals, and the construction of independent industrial and national economic system after the war. In Japan, the government takes much count of support for small and medium-sized enterprise financing. It establishes a small and medium-sized enterprise financial system that takes non-governmental units as principal parts and government as assistant one. Different types of financial institutions coexist in the small and medium- sized financial system and complement one another, which serves as a great support for small and medium-sized enterprise. The financial support mode for Japan’s small and medium-sized enterprises and its characteristics serve as inspirations for us in the fast and healthy development of China’s small and medium-sized enterprises.

Information, Informal Finance, and SME Financing

Informal finance exists extensively and has been playing an important role in small- and medium-sized enterprise (SME) financing in developing economies. This paper tries to rationalize the extensiveness of informal finance. SME financing suffers more serious information asymmetry to the extent that most SMEs are more opaque and can only provide less collateral. Informal lenders have an advantage over formal financial institutions in collecting “soft information” about SME borrowers. This paper establishes a model including formal and informal lenders and high- and low-risk borrowers with or without sufficient collateral and shows that the credit market in which informal finance is eliminated will allocate funds in some inefficient way, and the efficiency of allocating credit funds can be improved once informal finance is allowed to coexist with formal finance.