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 Analysing spatial interdependence among the 2011 Thailand flood-affected small and medium enterprises for reduction of disaster recovery time period

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Shubham Pathak ◽  
Jorge Chica Olmo
Keyword(s):  
Disaster Recovery ◽  
Small And Medium Enterprises ◽  
Spatial Econometric ◽  
Middle Income ◽  
Management Planning ◽  
Accurate Perception ◽  
The Government ◽  
Medium Enterprises ◽  
Disaster Management Planning ◽  
The Impact

AbstractNatural disasters have been a significant hurdle in the economic growth of middle-income developing countries. Thailand has also been suffering from recurring flood disasters and was most which are severely affected during the 2011 floods. This paper aims to identify the various factors that impact the speed of disaster recovery among the Small and Medium Enterprises (SMEs) severely affected by the floods in Pathumthani province in central Thailand, and how it is related to its speed decision of neighbours SMEs. The methodology adopts a spatial econometric model, to analysis and understand each of the chosen factors’ impact. The findings include the impact of disaster resilience, mitigation and planning at the SME level as well as the government level. The absence of accurate perception of actual risk, flood insurance and disaster management planning before the 2011 floods had contributed to the severity of the impacts during the 2011 floods.

The Impact of Globalization on Development of MSMEs

2021 ◽  
Vol 2 (1) ◽  
pp. 46-60
Author(s):  
Rama Mohana Rao Katta ◽  
Chandra Sekhar Patro
Keyword(s):  
Small And Medium Enterprises ◽  
National Level ◽  
Work Conditions ◽  
Firm Level ◽  
Market Opportunities ◽  
Growing Economy ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

Globalization has been a significant force in the development of the market and economic environments. The micro, small, and medium enterprises (MSMEs) need to focus on technological capabilities to face the competition in the globalized market. They have to analyze the market opportunities in the rapidly growing economy as well as emerging markets. The aids of a globalized and digital economy depends to an excessive extent on favourable business environments and healthy competition. The performance of MSMEs depends on accessibility to various strategic resources like abilities, technical know-how, innovativeness, and finance. Thus, it is imperative to consider the factors influencing work conditions firm level, and the strategies formulated at the national level are organized to local business perspectives. This paper examines the global scenario of MSMEs, the impact of globalization, the role of MSMEs in India, the growth perspectives of MSMEs during the pre-and post-globalization period, the critical challenges, and the role of the government in encouraging and developing MSMEs.

scholarly journals The Causal Effect of Access to Finance on Productivity of Small and Medium Enterprises in Vietnam

2019 ◽  
Vol 11 (19) ◽  
pp. 5451 ◽  
Author(s):  
Mai Huong Giang ◽  
Bui Huy Trung ◽  
Yuichiro Yoshida ◽  
Tran Dang Xuan ◽  
Mai Thanh Que
Keyword(s):  
Financial Services ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Causal Effect ◽  
Bank Loan ◽  
Firm Productivity ◽  
Function Estimation ◽  
Access To Finance ◽  
The Government ◽  
Medium Enterprises

In many developing countries, obtaining financial services at affordable rates and fair terms has been a significant challenge for small and medium enterprises (SMEs). However, this issue has not been paid much attention in Vietnam, even though SMEs account for about 95% of total enterprises and the financial market of the country has not been well developed. This study investigates the causal effects of access to finance on productivity of SMEs operating in the manufacturing sector in Vietnam. Productivity was measured as the total factor productivity (TFP) obtained by production function estimation using the Levinsohn and Petrin approach. Regarding financial accessibility, two factors covered the extent to which firms might have a bank loan or overdraft facility were employed. To study the causal inferences of access to finance on firm productivity, the research adopted the difference-in-differences (DID) approach, as well as the propensity score matching (PSM) coupled with DID technique. The empirical results indicated that improving the financial accessibility could directly enhance firm productivity. Particularly, it was shown that firms having access to a bank loan could significantly improve TFP by approximately 8.6% in the DID model and about 9% in the PSM-DID model. Meanwhile, the firm average TFP increased by approximately 12.3% and 15.7% in simple DID and PSM-DID models, respectively, when firms had an overdraft facility. These findings suggest that the government should put more effort into assisting SMEs in generating bankable projects, and create a sound and healthy financial environment to stimulate firms’ access to finance, which will ensure their sustainability and growth.

scholarly journals Determinants of New Small and Medium Enterprises (SMEs) Access to Bank Credit: Case Study in the Phu Tho Province, Vietnam

2017 ◽  
Vol 12 (7) ◽  
pp. 83 ◽  
Author(s):  
Hung D. Pham
Keyword(s):  
Small And Medium Enterprises ◽  
Business Plan ◽  
Bank Loans ◽  
Government Support ◽  
Bank Loan ◽  
Credit Access ◽  
Business Plans ◽  
Explanatory Variables ◽  
Total Capital ◽  
Medium Enterprises

Small and medium-sized enterprises (SMEs) play a very important role in the Vietnamese economy. Specifically, new SMEs are seen as a suitable solution to cope with development issues such as poverty and a high unemployment rate. In Vietnam, a high SME failure rate is due to lack of capital and poor managerial experience of owners. Most existing research on SMEs focuses on well-established stages, and less attention is paid to new SMEs. This paper investigates the determinants of credit access by SMEs existing for less than forty-two months in the Phu Tho province located in Northern Vietnam. The quantitative data were collected from 259 SMEs in 2015. The regression analysis reveals that a business plan, the firm size, and networking (emotional trust, knowledge trust, and approachability) are the main drivers of access to bank loans by new SMEs. About 64% (165 observations) of new SMEs in our sample did not get any bank loan caused by high collateral requirements, unfavorable interest rate, poor business plans, limited networking, and lack of government support. The results also indicate that, among the selected explanatory variables, having a concrete business plan significantly affects the bank loan ratio (total bank loans over total capital). Based on these results, we derived political implications.

scholarly journals Factors Affecting the Performance of Agri Small and Medium Enterprises with Evidence from Kosovo

2021 ◽  
Vol 13 (2) ◽  
pp. 297-313
Author(s):  
Ekrem Gjokaj ◽  
Diana Kopeva ◽  
Nol Krasniqi ◽  
Henrietta Nagy
Keyword(s):  
Rural Economy ◽  
Small And Medium Enterprises ◽  
International Standards ◽  
Production Potential ◽  
Factors Affecting ◽  
Direct Payments ◽  
Medium Enterprises ◽  
The Impact ◽  
Agriculture Development ◽  
Significant Factors

Abstract The agri SMEs in Kosovo are facing challenges that are reducing competitiveness and preventing it from fulfilling their production potential. The main constraints in increasing productivity and improving competitiveness are the low use of modern techniques and technologies in both production and management of enterprises, lack of funds, the low use of inputs, and the limited ability to meet international standards of food safety. This paper is focused on the analysis of the impact of agricultural SMEs in the rural economy of the country and the problems related to the impact. The data used for this analysis are the data conducted for the Farm Structure Survey (FSS) which includes the farmers’ list from Agricultural Records compiled by the Kosovo Agency of Statistics (KAS) in 2014, as well as the lists of beneficiaries for both direct payments/subsidies and for grants for the period of 2014 to 2017 received by the Agency for Agriculture Development. From the research results, significant factors having an effect on the annual income of agris SMEs are the following: income from the sale of agricultural products, income from subsidies, income from non-agricultural activities, income from salaries, remittances, and income from other activities.

scholarly journals Micro, small, and medium enterprises (MSMEs): The emerging market analysis

Accounting ◽  
2021 ◽  
Vol 7 (7) ◽  
pp. 1521-1528
Author(s):  
Fatimah Fatimah ◽  
Abid Djazuli ◽  
Fitriya Fauzi
Keyword(s):  
Environmental Conditions ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Emerging Market ◽  
Research Impact ◽  
Business Owners ◽  
Factors Affecting ◽  
Use Of Technology ◽  
The Government ◽  
Medium Enterprises

This study aims to analyse the factors affecting the Micro, Small, and Medium Enterprises in the province of South Sumatra, Indonesia. Data of 100 MSMEs were collected through questionnaires in the 15 regencies/cities in South Sumatra. The statistical analysis used was Structural Equation Modelling (SEM) processed through AMOS. The results evidence that the external factors of capital support, business partners, and infrastructure directly have no direct effects but indirectly affect the performance of MSMEs in South Sumatra. Also, the availability of resources and environmental conditions; and the capability of business owners and employees indirectly affect the performance of MSMEs in South Sumatra. Lastly, the use of technology and research impact the performance of MSMEs in South Sumatra directly and indirectly through the availability of resources and environmental conditions and business owners and employees' capability. Theoretically, this study expands the MSMEs literature by discussing factors (i.e., external and internal) affecting MSMEs' performance holistically. Practically, this study is beneficial for the government, practitioners, and policymakers.

scholarly journals DAMPAK PERLAKUAN PERATURAN PEMERINTAH NOMOR 46 TAHUN 2013 ATAS PAJAK PENGHASILAN PADA UMKM DI GRESIK

2014 ◽  
Vol 5 (2) ◽  
pp. 195
Author(s):  
Faiqotul Ilmia ◽  
Sri Andriani
Keyword(s):  
Income Tax ◽  
Government Regulation ◽  
Small And Medium Enterprises ◽  
Tax Rates ◽  
Net Income ◽  
Directorate General ◽  
Qualitative Descriptive ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

In achieving the desired development by Indonesia, the government requires revenue from the State Tax Revenue and Non-Tax Revenues. One of the efforts undertaken by the Directorate General of Taxation (DGT) is enacted Government Regulation No. 46 of 2013, the tax base used is the gross turnover of each month at 1 % final income tax rates. The emergence of these regulations is to provide convenience for taxpayers in determining the amount of income tax payable, but enactment of these rules in the middle of giving trouble for taxpayers in the calculation, depositing and reporting taxes for the year 2013. Purpose of this study was to determine the impact of treatment of PP 46 of 2013 on income tax on Micro, Small and Medium Enterprises (SMEs) in Gresik skull cap industry. This study used a qualitative descriptive approach with the aim of obtaining a picture of the object that is easily observed in the form of words on the focus of research on the impact of the enactment of Regulation 46 of 2013. The 3 (three) object of research is no skull cap Industry SMEs in Gresik . Data analysis aims to simplify the data processed, making it easy to read and interpret. Data were collected by means of observation, interviews, documentation. Analysis of the data through three stages: data reduction, data display, and conclusion. The results showed that the enactment of Regulation 46 of 2013 not only creates difficulties in terms of computation, depositing and reporting just as effective mid-year, but still there who do not know the regulations in terms of both has been the enactment of these regulations and in terms of the calculation mechanism. As for other effects of the government’s enactment of legislation, namely the amount of income tax payable is higher than the income tax calculations using norm bookkeeping or net income.

scholarly journals Adaptation Strategy of MSME (Micro, Small and Medium Enterprises) Actors in The Middle of Covid Pandemic (Study in Surabaya and Sidoarjo)

2021 ◽  
Vol 5 (1) ◽  
pp. 52
Author(s):  
Diyah Utami ◽  
Mutiah Mutiah ◽  
Arief Sudrajat
Keyword(s):  
Small And Medium Enterprises ◽  
Health Sector ◽  
Adaptive Strategy ◽  
Adaptation Strategy ◽  
Social Strategies ◽  
Research Subjects ◽  
Assistance Program ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

This study aims to see the impact of the COVID pandemic on a group of people, namely MSME (Micro, Small and Medium Enterprises) actors. This entrepreneurial sector is known for its flexibility and resilience to withstand all situations and conditions, including during the 1998 monetary crisis. However, during the pandemic, this sector was hit the hardest compared to large companies. This is because the MSME sector in general does not have large savings as part of a precautionary motive. The government actually already has an assistance program for MSMEs affected by COVID. But, of course, MSME (Micro, Small and Medium Enterprises) actors must rise up to help themselves, not only relying on government programs that may have limitations. This study aims to see the strategies of the MSME actors, both economic and social strategies. Researches on the adaptive strategies of economic actors have indeed been carried out frequently. The difference is that the adaptive strategy that will be examined this time is a strategy during the COVID pandemic. Most of the COVID-19 studies have been conducted in the medical or health sector. Because this research was conducted during the pandemic, interviews were conducted through digital technology, namely WA calling or telephone. There were six research subjects who were interviewed, with various product variants produced. Based on the research results, it was found that there are three kinds of adaptation strategies for MSME actors namely: economic strategy, technology strategy and social network strategy.

scholarly journals What determines the allowance of bank loans for investment – an overview of Kosovo SMEs

2015 ◽  
Vol 1 (1) ◽  
pp. 27-35
Author(s):  
Florin Peci
Keyword(s):  
International Trade ◽  
Linear Regression ◽  
Econometric Model ◽  
Small And Medium Enterprises ◽  
Business Plan ◽  
Bank Loans ◽  
Bank Loan ◽  
Using Data ◽  
Medium Enterprises ◽  
Investment Growth

The present study determines firm and entrepreneurship characteristics of small and medium enterprises (SMEs) active in international trade towards investment and growth. Using data collected through self-administered interviews with 180 SMEs in Kosovo, we investigated factors that influence the investment growth financed by bank loans. Econometric model of linear regression indicates that a large number of firm and entrepreneur characteristics including experience, sector, business plan, audit statements, collateral significantly affect investment growth. Our findings suggest that especially education of SMEs managers have higher rate of financing sources through bank loan. The study concludes with respective findings translated into recommendations, which have to be considered by relevant stakeholders active in entrepreneurship and policymaking.

THE IMPACT OF INNOVATION ON SMALL AND MEDIUM ENTERPRISES GROWTH

2021 ◽  
Vol 9 (1) ◽  
pp. 1-6
Author(s):  
Mohammed Zannah ◽  
◽  
Fauziah Mahat ◽  
Jibrin Geidam ◽  
Umar Malum ◽  
...  
Keyword(s):  
Technological Innovation ◽  
Small And Medium Enterprises ◽  
Business Organisation ◽  
Creative Thought ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship ◽  
Structured Questionnaire

The role of Innovation on small and medium enterprises (SMEs) growth is inevitable in any form of business organisation. Innovation has to do with a new idea, creative thought, and new imaginations of device of production of new product to add value to its customer. Innovation save as rebirth of product and reintroduce product in new look. This study have assess the impact of investment and technological innovation in growth of SMEs in Yobe State Nigeria. Structured questionnaire were used to gather the data, random sampling method were also adopted in surveying the 150 number of respondent. The finding shows significant relationship between innovation of product and production device and small and medium Growth, the result shows there is a relationship and the relationship is medium and positive. Moreover therefore there is impact of both investment and technological innovation on small and medium enterprises Growth The innovation has highly increase the growth of the enterprises. The study also recommend the government to consider and increase funds being allocated to grow the SMEs to make more innovations.

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