Financial constraints and investment: assessing the impact of a World Bank credit program on small and medium enterprises in Sri Lanka

2008 ◽  
Vol 41 (2) ◽  
pp. 475-500 ◽  
Author(s):  
Varouj A. Aivazian ◽  
Eric Santor
Keyword(s):  
Sri Lanka ◽  
World Bank ◽  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Bank Credit ◽  
Credit Program ◽  
Medium Enterprises ◽  
The Impact

Impact of Non-Financial Factors on Performance of Small and Medium Scale Enterprises of Furniture Industry in Moratuwa, Sri Lanka

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
W. I. A Perera ◽  
D. H. B. Y. Ranasinghe
Keyword(s):  
Sri Lanka ◽  
Small And Medium Enterprises ◽  
Study Data ◽  
Furniture Industry ◽  
Input Constraints ◽  
Financial Factors ◽  
Empirically Supported ◽  
Regulatory Constraints ◽  
Medium Enterprises ◽  
The Impact

Small and Medium Enterprises in any nation are blessed with the ability to become the backbone of the domestic economy and the sustainability. Therefore, they must concern about the factors which are affecting their performance. Many studies have been conducted by highlighting the financial factors that affect the performance of small and medium enterprises. Furniture industry is also embodied with number of small and medium enterprises around Sri Lanka. But still it is held the reputation in Moratuwa city. As an industry, small and medium enterprises are not sufficiently aware of non-financial factors which affect their performance and struggle to identify the impact of non-financial factors and how they could avoid the barriers from non-financial factors. Though the recent governments and regulatory bodies have designed policies and strategies to encourage small and medium enterprises by providing financial facilities, the information and the knowledge regarding non-financial factors are not sufficient. The purpose of this study is to identify the impact of non-financial factors on performance of Furniture industry in Moratuwa, Sri Lanka. After a comprehensive literature review, Input constraints, Regulatory Constraints, Technology constraints, Infrastructure constraints and Threats of Substitute products are identified as the independent variables of the study. Data collection was done using a structured questionnaire with 30 questions of Likert scales from the selected sample of 100 Furniture small and medium enterprises located in Moratuwa area. The analysis was carried out performing tests on descriptive statistics, validity, reliability, correlation, and regression analyses, and it is empirically supported that there is a significant impact of input constraints and infrastructure constraints on performance of Furniture industry in Moratuwa, Sri Lanka. Thereby, the findings would help the authorities and policy makers to take necessary actions to accomplish fu

scholarly journals Access to Finance, Financial Development and Firm Performance – Evidence from Pakistan

2020 ◽  
pp. 49-68
Author(s):  
Waqas Ahmad ◽  
Zaheer Abbas ◽  
Zulfiqar Ali Shah
Keyword(s):  
Firm Performance ◽  
Financial Development ◽  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Labour Productivity ◽  
Fixed Effect Model ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Impact

Purpose- The aim of the study is to investigate the impact of financial constraints on firm performance. The role of financial development in reducing financial constraints is also investigated. Design/methodology/approach- Data from two waves of World Bank Enterprise Surveys from 2007 to 2013 was used to construct the required variables. A balanced sample of 427 firms was selected and a fixed-effect model was used for empirical estimations. Findings- The findings indicate the significance of access to finance in terms of explaining firm performance. Improvement in access to finance led to subsequent improvement in firm performance as measured by labour productivity. The role of financial development in reducing credit constraints is not as expected. The concentration of lending to the private sector in the hands of large corporations at the expense of small and medium enterprises could be the reason for such a result. Originality/value – Most of the work in this area is focused on large listed firms. The present study focused primarily on small and medium-sized enterprises in Pakistan. Multiple measures of financial constraints and firm performance were used for robustness. The investigation also covers the role of financial development and its microeconomic implications at the level of an enterprise.

scholarly journals BANK CREDIT ACCESSIBILITY FOR SMALL AND MEDIUM ENTERPRISES IN HO CHI MINH CITY, VIETNAM

2021 ◽  
pp. 35-46
Author(s):  
Tran Huu Ai ◽  
Nguyen Thi Mong Thu
Keyword(s):  
Small And Medium Enterprises ◽  
Business Plan ◽  
Bank Credit ◽  
Ho Chi Minh City ◽  
Primary Data ◽  
Firm Characteristics ◽  
Factors Affecting ◽  
Related Data ◽  
Medium Enterprises ◽  
The Impact

This study examines the impact of firm characteristics on SMEs' access to bank crediting. The study used primary data taken from a survey questionnaire of 269 SMEs that collected credit-related data concerning SMEs. Regression analysis is applied to identify the factors affecting the accessibility of bank credits. SPSS 22.0 software was used for further analysis. The results show that the characteristics of business affecting the ability to access bank credit include: enterprise's location, equity, business plan, collateral, project value and firm tax number. The factors of business plan and project value are the two most influential ones.

The Impact of Institutional Factors on Female and Male Owned Firm Financing

2019 ◽  
pp. 616-634
Author(s):  
Stuart Murrin Locke ◽  
Nirosha Hewa-Wellalage
Keyword(s):  
World Bank ◽  
Small And Medium Enterprises ◽  
External Financing ◽  
Additional Information ◽  
External Finance ◽  
Standards Of Living ◽  
Firm Financing ◽  
Lost Potential ◽  
Medium Enterprises ◽  
The Impact

The study compares the impact of the commercial environment on external financing of female- owned micro, small and medium enterprises (MSMEs) compared to those that are male owned in seven South Asian countries. The region exhibits weak institutional and regulatory regimes which result in expropriation of profits from MSMEs. It is likely that such commercial environments add to the risk of lending to MSMEs and this may further manifest a gender bias toward males. This study uses a unique dataset of over 5000 firms from World Bank Enterprise Surveys and combines this with additional information drawn from World Bank macro-economic data. Interval and logit regressions are used. Contrary other studies, this research indicates that once females have access to formal financing they use a higher proportion of formal financing in their firm capital structure than their male-counterparts. A gap in accessing external finance for female-owned MSMEs presents both a waste of human resource and a lost potential to lift standards of living, presenting an opportunity for reform.

The Impact of Institutional Factors on Female and Male Owned Firm Financing

2018 ◽  
pp. 1720-1739
Author(s):  
Stuart Murrin Locke ◽  
Nirosha Hewa-Wellalage
Keyword(s):  
World Bank ◽  
Small And Medium Enterprises ◽  
External Financing ◽  
Additional Information ◽  
External Finance ◽  
Standards Of Living ◽  
Firm Financing ◽  
Lost Potential ◽  
Medium Enterprises ◽  
The Impact

The study compares the impact of the commercial environment on external financing of female- owned micro, small and medium enterprises (MSMEs) compared to those that are male owned in seven South Asian countries. The region exhibits weak institutional and regulatory regimes which result in expropriation of profits from MSMEs. It is likely that such commercial environments add to the risk of lending to MSMEs and this may further manifest a gender bias toward males. This study uses a unique dataset of over 5000 firms from World Bank Enterprise Surveys and combines this with additional information drawn from World Bank macro-economic data. Interval and logit regressions are used. Contrary other studies, this research indicates that once females have access to formal financing they use a higher proportion of formal financing in their firm capital structure than their male-counterparts. A gap in accessing external finance for female-owned MSMEs presents both a waste of human resource and a lost potential to lift standards of living, presenting an opportunity for reform.

The Impact of Institutional Factors on Female and Male Owned Firm Financing

2016 ◽  
pp. 96-114
Author(s):  
Stuart Murrin Locke ◽  
Nirosha Hewa-Wellalage
Keyword(s):  
World Bank ◽  
Small And Medium Enterprises ◽  
External Financing ◽  
Additional Information ◽  
External Finance ◽  
Standards Of Living ◽  
Firm Financing ◽  
Lost Potential ◽  
Medium Enterprises ◽  
The Impact

The study compares the impact of the commercial environment on external financing of female- owned micro, small and medium enterprises (MSMEs) compared to those that are male owned in seven South Asian countries. The region exhibits weak institutional and regulatory regimes which result in expropriation of profits from MSMEs. It is likely that such commercial environments add to the risk of lending to MSMEs and this may further manifest a gender bias toward males. This study uses a unique dataset of over 5000 firms from World Bank Enterprise Surveys and combines this with additional information drawn from World Bank macro-economic data. Interval and logit regressions are used. Contrary other studies, this research indicates that once females have access to formal financing they use a higher proportion of formal financing in their firm capital structure than their male-counterparts. A gap in accessing external finance for female-owned MSMEs presents both a waste of human resource and a lost potential to lift standards of living, presenting an opportunity for reform.

Sign in / Sign up

Export Citation Format

Share Document