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Mandiefe, Serge Piabuo, and Jonas Chia Bafon. "Determinants of internal resources of small and medium sized-enterprises in Cameroon." Scholedge International Journal of Management & Development ISSN 2394-3378 2, no. 9 (October 12, 2015): 37. http://dx.doi.org/10.19085/sijmd.020904.
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Financing decisions have direct impact on financial structure and financial performance of firms. The aim of this study is to examine the specificity of capital structure of SMEs and that internal financial resources of Cameroonian SMEs. A binary discrete choice regression; the probit model is used to estimate the probability of the use of internal resource as principal financing source, World Bank 2009 enterprise survey was used in this study. Descriptive statistics was also used to verify the fact that the financial structure of SMEs differ from that of large firms. The principal results of this research shows that SMEs use more of internal sources of finance while large firms use more of external financing. We also noticed that when SMEs are family owned, sole proprietors have a higher probability of using internal source of financing as the principal source of financing, we also noticed that informal enterprises use more of non-bank external financing.
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Belanova, Katarína. "Financing of small and medium – sized enterprises by bank loans during the coronavirus crisis." Mednarodno inovativno poslovanje = Journal of Innovative Business and Management 13, no. 2 (December 1, 2021): 46–56. http://dx.doi.org/10.32015/jibm.2021.13.2.4.
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In a market economy, small and medium-sized enterprises (SME) play an important and irreplaceable role. They need funds for their activities, which can be obtained from internal and external sources. Lack of own sources of finance can be solved by using of bank loans or alternative sources of financing. In the article, we evaluate the financing of SMEs in the Slovak Republic at the times of the coronavirus crisis with a focus on financing by bank loans. We found that the dynamics of credit growth maintained stable from the point of view of the corporate sector as a whole, but the availability of financing was limited for riskier groups of companies.
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Iskakova, M. S., and A. A. Imanbaeva. "EVALUATION OF THE INFLUENCE OF STATE SUPPORT PROGRAMS ON THE DEVELOPMENT OF INNOVATIVE ENTREPRENEURSHIP." Bulletin of "Turan" University, no. 3 (October 4, 2020): 183–89. http://dx.doi.org/10.46914/1562-2959-2020-1-3-183-189.
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The ultimate goal of innovative entrepreneurship is the development of enterprises that are able to quickly respond to the current market situation, create competitive high-tech products of the new generation and increase demand at the level of world standards. Support for the development of innovative entrepreneurship is provided at the state level. Support programs are aimed at implementing three tasks: supporting new business initiatives, improving the business sector, and supporting export-oriented industries. All areas solve the complex tasks of ensuring sustainable and balanced growth of regional entrepreneurship in non-resource sectors of the economy, creating existing and new jobs. The transition to an innovative economy requires systemic reforms in the field of training, scientific and applied research, support for startups, the transfer of advanced technologies, and the creation of a venture ecosystem. The industrial and innovation policy of the state is implemented in partnership with business. Support measures are provided by the fulfillment of their mutual obligations. Financing of innovative activities of enterprises is carried out at the expense of internal and external sources. Internal financing includes the use of part of the company's profits for innovative purposes. This type of financing is not suitable for small and medium-sized businesses due to limited own resources. The most common external sources of financing for enterprises in Kazakhstan are credit resources, funds allocated directly from the state budget for the implementation of innovative projects.
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Saadallah, Eslam, Amr Abdel Aziz, Aiman Ragab, and Ashraf Salah. "The Impact of Capital Structure on Profitability of Egyptian MSMEs in the Period From 2016 to 2019." International Journal of Accounting and Financial Reporting 11, no. 1 (March 11, 2021): 24. http://dx.doi.org/10.5296/ijafr.v11i1.18286.
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MSMEs are essential for economic development for they act as employment engines, aid poverty alleviation and amplify broad-based economic growth. This research focuses on the impact of capital structure on Egyptian MSMEs profitability.This dissertation utilizes a quantitative approach in research. Secondary data is used in this study via using the annual reports of 360 MSMEs in Egypt in the period from 2016 to 2019 (120 micro enterprises, 120 small enterprises and 120 medium enterprises). Data was collected for the research variables: capital structure represents the independent variable; it is measured by debt ratio and equity ratio. Profitability of MSMEs represents the dependent variable, it is measured by return on assets, return on equity and net profit margin. Firm size and firm age represent the control variables. As far as micro samples and small samples were concerned, it was found that there was a significant negative correlation between Debt ratio and ROE, ROA and NPM. However, it was found that there was a highly significant positive correlation between Equity ratio and ROE, ROA and NPM. This result tends to support the pecking order theory of micro and small businesses capital structure in Egypt which postulates that internal sources of financing are better than external sources in the case of high interest rate due to the high costs of financing. In regards to medium firms, it was found that there was a positive significant correlation between debt ratio and ROE, ROA and NPM. On the other hand, it was found that there was a negative significant correlation between Equity ratio and ROE, ROA and NPM. This result tends to support the tradeoff theory of Medium businesses capital structure in Egypt. Concerning firm age, it was found that smaller aged firms have better rates of profitability than large aged ones. Regarding firm size, it was found that smaller sized firms have better rates of profitability than large sized ones.
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Visković, Josip, and Martina Udovičić. "Awareness Of Smes On The Eu Funds Financing Possibilities: The Case Of Split-Dalmatia County." KnE Social Sciences 1, no. 2 (March 19, 2017): 319. http://dx.doi.org/10.18502/kss.v1i2.666.
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<p class="AbstractText">Micro, small and medium-sized enterprises (SMEs) are considered to be the engine of the European economy. In EU SMEs make up more than 99% of all companies and provide around 75 million jobs. They are a key source of job creation and stimulation of entrepreneurial spirit and innovation and are therefore essential for fostering competitiveness and maintaining employment in the EU. Yet SMEs often have problems in raising funds to finance fixed investments and inventory and working capital. SMEs mostly use internal sources while the most important external sources of SMEs are bank loans, which are not easily accessible. Hence, one of the priorities of the European Commission is stimulating SMEs through EU funds and programs in order to enable SMEs development and finally to contribute to economic growth. SMEs sector also dominates the economic structure of Croatian economy and they have similar financing problems. However, Croatia in period 2014 – 2020 have at disposal a total amount of 10.676 billion of euros from European structural and investment funds, of which 8.397 billion are aimed for cohesion policy objectives and 470 million euros are aimed for the development and competitiveness of SMEs. Besides, EU programs COSME and HORIZON 2020 are intended to provide direct support to SMEs and to create a favorable environment for their development. However, even though the number of successful project applications for small and medium-sized enterprises in the total share of Croatian project applications is relatively high, fund absorption has not reached satisfactory levels. Using the sample of Split-Dalmatia County’s SMEs, this study finds out reasons for low absorption capacity from SMEs point of view: SMEs are interested in funds from European Union, but are not sufficiently familiar with their availability i.e. funds at their disposal, especially programs COSME and HORIZON 2020; SMEs state that they know how to apply for EU funds but considered the procedure as complicated and demanding regarding documentation, and that the needed knowledge and know-how for proposal is beyond their scope; SMEs are not satisfied with the cooperation with state institutions, especially Ministry of Regional Development and EU funds and Croatian Chamber of Economy. We point out four main conclusions: (1) SMEs are not enough aware of EU financing possibilities; (2) additional promotion of EU programs directly to SMEs is required; (3) additional education of SMEs regarding project proposal and documentation is needed and (4) more proactive policy of state institutions and cooperation with local authorities is expected. Finally, greater awareness and professional help might be a key in strengthening the SMEs, whose entrepreneurial spirit and innovation process is a prerequisite for economic growth and development.</p>
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Győri, Ágnes, Ágnes Czakó, and Gergely Horzsa. "Innovation, Financial Culture, and the Social-Economic Environment of SMEs in Hungary." East European Politics and Societies: and Cultures 33, no. 4 (July 21, 2019): 976–1004. http://dx.doi.org/10.1177/0888325419844828.
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Despite the numerous pieces of research that have been undertaken to aid understanding of the innovative activities of small- and medium-sized enterprises (SMEs), only a few have dealt with the interaction between innovation activity and the finance-related attitudes, literacy, and knowledge (competencies) of these companies. The current research focuses on specific aspects of the innovation activities of SMEs in a post-communist society (Hungary) by taking into consideration elements of both entrepreneurial financial culture and the social-economic environment. Our analysis is based on a national representative survey, 2017. Results show that the presence of a creative financial culture, and the grounding of management decisions correlate with company innovation. We found that subsidies as external financial sources contribute to a larger extent to the innovation activities of SMEs than other external and internal financial resources. Moreover, the study explores the effects of some economic and social competition-related factors.
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Svynous, Nadiya. "INVESTMENTS AS A MEANS OF REPRODUCING OF THE MATERIAL AND TECHNICAL BASE OF AGRICULTURAL ENTERPRISES." Economic discourse, no. 4 (December 30, 2020): 146–54. http://dx.doi.org/10.36742/2410-0919-2020-4-15.
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Introduction. The processes of reproduction of MTB of agricultural producers are determined by a number of internal and external factors, among which are the following: opportunities for the formation of investment resources from external and internal sources of funding; effectiveness of state support; organization of production activities, which focuses on resource conservation; size and specialization of the enterprise; financial stability; efficiency of production activity; product competitiveness; investment activity; productivity of technical means, their physical and moral wear and tear; perception of innovations. Methods. The methodological basis of the study is a dialectical method of cognition, a systematic approach to the study of economic phenomena. The tasks are solved using the following methods: abstract and logical (in formulating theoretical generalizations and conclusions); monographic (reflecting the processes of formation of the material and technical base of agricultural enterprises in the dynamics); statistical analysis (to assess the movement of the active part of non-current assets of farms in the corporate sector of the agricultural economy). The reliability of the obtained results, conclusions and proposals is confirmed by the calculations and a significant amount of empirical material presented in the work. Results. It is established that the main problems of deterioration of material and technical condition of fixed assets in agriculture are: low investment activity of agricultural producers; insufficient volumes and miscalculations in the targeting of state support for the renewal of fixed assets of agriculture for small and medium-sized farms in rural areas; imperfect agricultural leasing; no indexation of the book value of fixed assets of agricultural enterprises. Discussion. In the conditions of further development of investment activity of farms of the corporate sector of agrarian economy there is a necessity to make capital investments in acquisition of agricultural lands. In this connection the priority tasks of scientific research are: development of methodical approaches transactions for the purchase and sale of agricultural land and their reflection in the financial statements. Keywords: investment, material and technical base, agricultural enterprise, technical means, state support.
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Kokot-Stępień, Patrycja. "The importance of external financing in management of innovative processes in the SME sector." Ekonomia i Prawo 21, no. 1 (March 31, 2022): 145–63. http://dx.doi.org/10.12775/eip.2022.008.
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Motivation: A broad approach to the SME sector causes that small and medium-sized enterprises are active in all segments of the economy. Each segment is characterized by a certain way of doing a business and thus financing it. Therefore, an important issue for the small and medium-sized entities is to provide both liquidity and continuity of financing and access to such sources of financing that will allow the implementation of innovative projects since innovation affects the pace and direction of development of the specific economic entity as well as significantly indicates the forms and structure of business cooperation.
Aim: The aim of the article is to analyze the extent to which the various sources of financing are used by small and medium-sized enterprises in the implementation of innovative projects, and to show the relationship between external sources of financing and the level of expenditure on innovation of SMEs in Poland.
Results: The analysis was based on examining the dependence of the scale of innovative activity of enterprises in the SME sector in Poland on the possibility of using not only own funds, but also funds from external sources, the use of which by small and medium-sized enterprises is still too low and is often limited to EU funds.
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Vrablova, Veronika. "Comparative Analysis of Financing for Small and Medium-Sized Enterprises in the Visegrad Group." SHS Web of Conferences 92 (2021): 06041. http://dx.doi.org/10.1051/shsconf/20219206041.
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Research background: Small and medium-sized enterprises form the backbone of any national economy. Therefore, sources of financing are important for the enterprise´s growth around the world. Finance for enterprises can be divided into classic and alternative. Recently, alternative ways of financing experienced a boom, especially venture capital, business angels, and crowdfunding. Although this type of funding is well known around the world, there are difficulties in using alternative financing among the Visegrad group. Moreover, there are lots of other factors curbing the expansion of enterprises. Purpose of the article: The purpose of this paper is to identify and compare sources of financing for small and medium-sized enterprises among the Visegrad group with focus on alternative financing. Visegrad group consists of the Slovak Republic, the Czech Republic, the Hungary, and the Poland. This paper presents an overview of available financing for small and medium-sized enterprises among the Visegrad group. Methods: For analysis, we used data from the the Survey on the access to finance for enterprises in 2019. Moreover, we also did hypothesis testing to compare the usage of financing through bank overdraft in the year 2019. Findings & Value added: We have reached several conclusions. Firstly, this paper suggests that classic sources of financing are used more than alternative ways, from which the bank loans and leasing are used the most. Secondly, the best condition of financing among countries of the Visegrad group is in Poland, but also other countries have huge potential. And finally, financing of enterprises is not the main issue causing difficulties in making business.
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Kata, Ryszard, and Paulina Filip. "European Union subsidies and bank credits as external sources of financing for small and medium enterprises in Poland." Management 20, no. 2 (December 1, 2016): 457–72. http://dx.doi.org/10.1515/manment-2015-0075.
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Summary The selection of financing sources constitutes an important decisive problem for small and medium enterprises. The study encompasses the assessment of which scale small and medium enterprises in Poland use EU funds and bank credits as the sources connected with financing business activity. Moreover, based on surveys of enterprises in Podkarpackie voivodship, the barriers and limitations of SMEs in the access to such financing sources have been defined. The classification and assessment of the significance of particular financial limitations have been performed by means of the reasons for credit passiveness of SMEs and their financial exclusion.
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Mahajan, Divya, and Amarjit Sidhu. "Source of Finance Resorted to, Cost Involved in Financing and Financing Decisions Taken by MSMEs: An Insight into Sports Goods Industry of Punjab." SEDME (Small Enterprises Development, Management & Extension Journal) 46, no. 2 (June 2019): 57–69. http://dx.doi.org/10.1177/0970846419852496.
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The research paper presents research done on access to finance by micro-, small- and medium-sized enterprises (MSMEs). There is a substantial evidence that small firms face larger growth constraints and have less access to formal sources of external finance. The study offers an insight into the sources of finance used by the enterprises of Sports Goods Industry of Punjab. In this article, the relationship or association between age of the MSMEs is studied with source of finance chosen by them, that is, whether there is any pattern witnessed in choosing the source of finance by young and old organisations. The findings were based on interviews conducted with 107 organisations.
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Godke Veiga, Marcelo, and Joseph A. McCahery. "The Financing of Small and Medium-Sized Enterprises: An Analysis of the Financing Gap in Brazil." European Business Organization Law Review 20, no. 4 (November 25, 2019): 633–64. http://dx.doi.org/10.1007/s40804-019-00167-7.
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AbstractWhile small and medium-sized enterprises (SMEs) are important for economic growth and employment, they face numerous obstacles in accessing external finance. In this article, we review recent developments in the availability of financing for SMEs in Brazil, focusing on the greater use of equity and debt for SMEs. In assessing the barriers to external financing, we focus on the role of bank characteristics, market structure and variations of interest rate spreads across banks and time. Moreover, as banks retreat from SME financing, we examine the potential for SMEs to seek new sources of financing from private equity and venture capital funds. We examine the changes in the availability of bank loans between 2014 and 2016. By considering demand, we estimate the SME loan gap based on Central Bank and publicly available data. Our results show that the loan gap in Brazil is substantial.
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Lewicki, Wojciech, and Tomasz Wierzejski. "Sources of Financing Small and Medium-Sized Enterprises: Case Studies in Poland." EUROPEAN RESEARCH STUDIES JOURNAL XXIII, Special Issue 2 (November 1, 2020): 700–712. http://dx.doi.org/10.35808/ersj/1893.
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Cerceil, Yu. "Substantiation of the Role of Small and Medium Enterprises in the Innovative Development of the Country's Economy, Taking into Account Foreign Experience." Scientific Research and Development. Economics of the Firm 9, no. 3 (October 7, 2020): 32–38. http://dx.doi.org/10.12737/2306-627x-2020-32-38.
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The article describes the concept of small and medium-sized enterprises, considers the stages of legislative changes related to improving the level of development, including innovation, small and medium-sized enterprises. The analysis of foreign experience in the formation of state sources of financing activities SME.
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Dankova, Alena, and Marta Telus. "Financial Logistics of Small and Medium Sized Enterprises." Applied Mechanics and Materials 708 (December 2014): 205–9. http://dx.doi.org/10.4028/www.scientific.net/amm.708.205.
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The aim of this paper is to focus on the issue of financial logistics within conditions of small and medium enterprises, especially by gaining and using of financial resources by companies in selected regions in Slovak Republic.The main idea of this paper is to define possible recommendations and ideas based on the acquired knowledge for more effective use of supporting financial systems for SMEs. The aim is to eliminate regional disparities on selected area as well as possibility of using alternative sources of financing SMEs.
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Solongo, Ganbold. "Financial Resources Management for SME`S of Mongolia." International Business Research 10, no. 6 (May 18, 2017): 145. http://dx.doi.org/10.5539/ibr.v10n6p145.
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This paper Financial resources management analyzes the sources of financing for the medium enterprises in Mongolia by comparing between limited liability companies and public listed companies who are actively working in trading, manufacturing and service providing companies external and internal sources of finances. The paper gives an overview of the related theories of financial sources and capital structuring and aimed to approve based on the empirical studies on the selected three different industries 14 companies (based on the empirical studies done on 14 companies within three different industries). This paper also defined an optimal capital structure for the selected industries and each company based on the scenario analysis and assumptions. This paper investigates the sources of financing for the medium enterprises in Mongolia in different ownership structures by a capital structure theories and their impact on corporate financial performances. There are several theories regarding the process of business financing in general, companies can obtain sources of finances from short term sources, debt finance, venture capital, equity finance and internal sources.
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Pöltner, P., and T. Grechenig. "Organic Finance Framework: Aligning Financing Complexity with Organisational Complexity (for Innovative Companies)." International Journal of Trade, Economics and Finance 11, no. 6 (December 2020): 156–62. http://dx.doi.org/10.18178/ijtef.2020.11.6.682.
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The organic finance framework is a new tool for managing the challenges of corporate financing. This framework is especially useful for small and medium-sized enterprises in the time of a crisis, such as the COVID-19 pandemic. At its core, the framework forces a rethink of the manner in which companies initiate their financing approach. In contrast to finding potential external sources of finance, the organic finance framework starts by looking at the relevant stakeholders of the company. Alternative financing methods, such as crowdfunding and crowdinvesting, have demonstrated that companies can work with potential future customers at an early stage in the company lifecycle to finance the development of an offering. Thus, the organic finance framework presents a global structural visualisation of the corporate financing domain that can help business owners to better align the lifecycle of a company with its funding sources.
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ADRAOUI, MOHAMED. "Islamic Banking opportunities Across small and Medium Enterprises in Africa." International Journal of Financial Accountability, Economics, Management, and Auditing (IJFAEMA) 3, no. 5 (September 28, 2021): 755–62. http://dx.doi.org/10.52502/ijfaema.v3i5.151.
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After a first part dedicated to the presentation of the Islamic financial landscape, through its history, the different products offered and its mode of operation, the present work addresses the financing issues of small and medium enterprises in Africa. Our study focuses more specifically on identifying the financing of small and medium-sized companies in Africa, what contribution can alternative finance play in terms of diversification of funding sources.
The motive of this research is that the reader will find the elements likely to nurture and enrich a very relevant debate in these times of turbulence where the system that made the heyday of the financial world lacks solutions.
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Łasak, Piotr. "The role of financial technology and entrepreneurial finance practices in funding small and medium-sized enterprises." Journal of Entrepreneurship, Management and Innovation 18, no. 1 (2022): 7–34. http://dx.doi.org/10.7341/20221811.
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PURPOSE: The traditional sources of financing (bank loans) cannot be treated as an essential source of financing for SMEs in developing countries. For this reason, this group of entities uses many alternative sources, from bootstrapping to microfinance and crowdfunding. During the last decade, a significant contribution in this area has been financial technology. The purpose of this study is threefold: 1) to present the role of financial technologies in financing SMEs, 2) to examine the role of entities based on financial technology in financing SMEs in developing countries, and 3) to consider other non-bank aspects of financing SMEs, leading to the improvement of the financial situation of these entities. The in-depth analysis of these entrepreneurial finance practices will be developed in the following papers presented in this Issue. METHODOLOGY: This study employs a theoretical approach based on a narrative literature review. The primary attention is focused on applying financial technology as a stimulant for the finance of SMEs in developing countries. FINDINGS: As a consequence of the financing gap for SMEs within the traditional financial system, these entities use non-bank financing based on financial technology. The research confirms that financial technology plays a crucial role in fostering the financial situation of SMEs in developing countries and providing greater financial inclusion for these entities. Both, financial technology and enterprises based on this technology contribute significantly to the improvement of efficiency of financing SMEs in emerging markets. They also provide a broader range of services, than were offered by the traditional financial sector. Regarding the other aspects of SME finance, it is essential to implement such ways of financing like microfinance services and crowdfunding. Such funding mechanisms, together with the budget process and the compliance under the conditions of e-tax systems, are important determinants of current entrepreneurial finance. IMPLICATIONS: The paper describes the financing of SMEs in developing countries. The in-depth picture of the SME’s financial situation, focusing on the technological development in this area, provides essential insight into this still poorly explored area. It also offers important premises for shaping the post-pandemic policy to support their further growth. ORIGINALITY/VALUE: Despite growing theoretical and empirical literature about entrepreneurship finance, this study aims to contribute to the role of financial technology in this area. The impact of financial technologies and the role of fintech-based entities on SME activity in developing countries are still poorly researched. Moreover, the research provides a brief overview of other SME funding sources and their determinants in this group of countries.
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Sinha, Pramod, and Seshanwita Das. "Pattern and Trends of Financing in the Indian Manufacturing Sector." Studies in Microeconomics 9, no. 1 (May 31, 2021): 105–27. http://dx.doi.org/10.1177/2321022220975928.
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The firm’s choice to finance its asset reveals the pattern of flow of funds, the availability and reliance on sources of such funds. We study ‘Sources of fund’ statement for an unbalanced panel of nearly 3400 firms in the manufacturing sector during the financial year 2011–2018. We find that financing has been mostly met through internal sources, and the reliance on external financing has decreased during this period. We introduce a methodological improvement by studying change in total assets to understand financing. A series of empirical models was formulated to identify factors that influences external financing. The result shows that unlisted, non-exporting, new-aged and small-sized firms have higher share of external financing. Further, profitability ratios like return on asset and operating profit margin, tangibility ratio like gross fixed assets to total assets, and reserves to total assets, shows negative and significant relationship with share of external financing to total funds and external financing to total assets. Our results add the dimension that interaction of change in assets with firm specific characteristics provides a meaningful way to extend the results of existing models. We argue that while existing methods use limited balance sheet items for analyzing internal versus external finance, firm level decisions ought to include all sources of finance. JEL Classifications: D22, G30, G32
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Frańczuk, Małgorzata, and Karolina Gałązka. "Sources of financing "green investments" micro, small and medium-sized enterprises in the lublskie province." Ekonomiczne Problemy Usług 127 (2017): 121–30. http://dx.doi.org/10.18276/epu.2017.127-11.
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Do, Thi My Huong. "Factoring as a Form of Financing Small and Medium-Sized Enterprises in ASEAN." Applied Economics and Finance 5, no. 3 (April 4, 2018): 59. http://dx.doi.org/10.11114/aef.v5i3.3175.
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Small and medium-sized enterprises have increasingly played very important roles, particularly in developing open economies and the ASEAN economic community. One of the biggest factors that hinders the growth of these firms is their lack of fund and limited access to financial sources. This writing, firstly, aims to illustrate that factoring can prove to be a popular tendency in fanancing small and medium enterprises in ASEAN by showing its considerable growing rate over the last two decades. In the second part, using the OLS, the paper also measures and discusses the determinants of factoring development in three financial markets including Malaysia, Thailand, Singapore.
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ZARATE, JAVIER, and NELCY SUAREZ. "CARACTERIZACIÓN DE LOS MECANISMOS DE FINANCIACIÓN PARA LAS MEDIANAS EMPRESAS DEL SECTOR AGROINDUSTRIAL COLOMBIANO." Pensamiento Republicano 9 (July 1, 2018): 123–36. http://dx.doi.org/10.21017/pen.repub.2018.n9.a43.
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Companies to stay and even more to grow in the market need sources of financing. This article characterizes various financing mecha- nisms, both internal and external, differen- tiating the cost, the access requirements and the profile of the company to be financed, for each mechanism. The emphasis of the article is the medium-sized companies of the Colombian agricultural industry, due to its great social relevance in relation to food security, and its economic importance as seen from the contribution of the sector in GDP, exports and employment. The purpose of this article is to generate knowledge of the different financing alternatives for medium-sized entrepreneurs in the Colombian agricultural industry.
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Ali, Md Rostam, Rustom Ali Ahmed, and Md Ashikul Islam. "Cost of external financing of SMEs: A study of a developing country." International Journal of Financial Engineering 06, no. 03 (September 2019): 1950029. http://dx.doi.org/10.1142/s2424786319500294.
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This study has attempted to calculate the actual cost of the fund of SMEs by considering the fund from institutional and non-institutional sources. For this study, some financial tools, techniques, two samples mean comparison test and ANOVA test have been used to analyze the cross-sectional primary data. The study has found that the average actual cost of the fund from institutional sources, non-institutional sources (without trade credit) and trade credit are 15.52%, 32.11% and 40%, respectively. The cost of the external financing of small enterprises is higher than the medium enterprises and this cost in manufacturing sectors is higher than the service/trade sectors. Again, this cost in rural region is higher than the urban region but it is not statistically significant. The average cost of external financing of SMEs is about 29% which is really high to conduct a business properly.
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Asad Ullah, Muhammad Khushnood, and Hafizullah. "Working Capital and Fixed Investment Effect on Sales Growth in SAARC Countries’ SMEs." Global Social Sciences Review IV, no. I (March 30, 2019): 129–36. http://dx.doi.org/10.31703/gssr.2019(iv-i).17.
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The study investigates the impact of various financing sources of working capital and fixed investment on sales growth. Population of the study comprises South Asian Association for Regional Cooperation (SAARC) countries’ small and medium sized enterprises (SMEs). Data of 6777 SMEs is retrieved from World Bank’s website. Multiple regression model is used to achieve the study objectives. Results signify a positive link between bank financing use for working capital and sales growth while the negative link between friends and family finance and sales growth is observed. Similarly all formal sources of finance used for fixed investment have positive link with sales growth. Finally, it is found that the government interventions and policy makers can alleviate access to formal sources of finance for boosting sales growth.
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Al-Afifi, Ahmed A. M. "Factors Affecting Decision Makers Preference of MSMEs in Financing Sources Choice." International Journal of Business Ethics and Governance 2, no. 2 (May 31, 2019): 16–29. http://dx.doi.org/10.51325/ijbeg.v2i2.31.
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The study examined the choice of the different financing theories for explaining the capital structure source of Micro, Small and Medium enterprises (MSMEs) that seeks to raise their capital, through examining the affecting factors on the main capital structure decision. The study used a questionnaire for 220 of Palestinian MSMEs in order to examine the financing decisions in these firms according to the main capital structure theories. The study found that in accord with the POT, it was confirmed an approach comprising an initial check on the availability of internal resources, followed by the use of internal capital. Where the most of the sample were prefer to depend on the personal money rather than to increase their capital through the partners and loans. Therefore, this suggests the need to raise awareness with regard to the concept of capital structure and the other determinations that affect MSMEs' capital financing.
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Kasseeah, Harshana. "Financial Constraints and Leverage Decisions in Small and Medium-Sized Firms." Journal of Economics and Behavioral Studies 4, no. 1 (January 15, 2012): 55–65. http://dx.doi.org/10.22610/jebs.v4i1.302.
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This paper studies the leverage decisions of small and medium-sized manufacturing firms in the UK. The relationship between debt and cash flow is studied in the light of both internal and overall financial constraints. Internal financial constraints are defined as those constraints internal to the firm that influence its financing decisions. These measures include the cash flow and profitability of the firm. Overall financial constraints account for both internal financial constraints and external financial constraints, which in turn are accounted for by conventionally used measures of financial constraints such as the size of the firm measured by the real assets and the riskiness of the firm. Results obtained indicate that firms follow a financial hierarchy when deciding what sources of finance to use. Internal financial constraints measured by the availability of internal funds are important factors that affect the relationship between debt and cash flow.
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Mukhamedyarova-Levina, T. T., I. V. Selezneva, and Ye A. Sigayev. "New directions of funding the activities of small and medium-sized enterprises in Kazakhstan." Bulletin of "Turan" University, no. 1 (March 31, 2021): 91–96. http://dx.doi.org/10.46914/1562-2959-2021-1-1-91-96.
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The development of small and medium-sized enterprises is of great importance for the economy of Kazakhstan. Despite the fact that state support largely contributes to positive changes in this area, the competence and interest in promoting the business of entrepreneurs themselves is crucial, which implies using all the opportunities that the market provides. The article emphasizes that currently, leasing and factoring are often an alternative to bank loans for entrepreneurs in Kazakhstan. However, these types of financing are characterized by high cost and do not have obvious advantages as a funding tool for small and medium-sized enterprises compared to bank loans. It is suggested that an alternative to this method of raising funds can be P2B lending, which involves the flow of funds from the investor to the borrower without the participation of intermediary financial institutions. In addition to finding optimal sources of financing, SMEs should pay attention to the use of alternative business methods. In this sense, franchisors have great prospects.
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Dukić, Dragan, Ivana Petrevska, and Dragan Rastovac. "External financing of SMEs in Serbia." Ekonomija: teorija i praksa 15, no. 1 (2022): 41–60. http://dx.doi.org/10.5937/etp2201041d.
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Considering the fact that small and medium enterprises often face funding difficulties, this paper discusses and analyzes the issue of financing SMEs in Serbia, i.e. the usage and possibilities of alternative, relatively more affordable, cheaper and more flexible options for financing entrepreneurial projects, which are available in practice. The research was conducted by surveying entrepreneurs and SME owners, in order to show the extent to which SMEs in practice rely on their own financing of their business, and how much is represented by financing from external non-banking sources. Also, the paper investigates and analyzes the level of satisfaction of entrepreneurs with the current usage of various financial instruments that they can access in different circumstances, as well as potential opportunities for their usage, with a focus on the current state of SME financing in practice. The obtained results indicate that entrepreneurs mostly rely on own financing of their business, that various options of non-bank financing are insufficient and that there is a lot of untapped potential. However, there is a need for more simplified procedures and better informedness of entrepreneurs.
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Pticar, Stjepan. "Financing As One Of The Key Success Factors Of Small And Medium-Sized Enterprises." Creative and Knowledge Society 6, no. 2 (December 1, 2016): 36–47. http://dx.doi.org/10.1515/cks-2016-0010.
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Abstract All entrepreneurs try to be timely unlimited, constant and successful in their business. In doing so, their company founding, running operations and development all depend on adequate and quality financing. The goal is to ensure a stable financing and growth and the question is how, when and from which sources should the financing be ensured. When talking of financing, it is primarily meant ensuring the money or the capital, a synonym of the entrepreneurship and its main moving strength. In order to be successful, it is of high importance to meet optimal business decisions and specially investing decisions. Even though the focus of the financing process is not solely limited to money, money plays a central role and is also the basis and the requirement for business activity and the very existence and the end goal of a business as well. One important focus of entrepreneurs is the question of an optimal financial structure for their own enterprise. The specifics of every individual company together with the industry they are in and macroeconomic environment they operate in do not allow for a uniform and generally applicable solution to this problem. The focus of this problem lies in the ratio between the size and structure of assets on one side and the size and structure of equity and debt on the other side. Every entrepreneur should also know which amount and structure of long-term assets, fixed assets is necessary for his enterprise. The function of investment planning defines these requirements before the actual investment takes place. An entrepreneur who is already longer in business will at this point analyze his actual financial structure with a focus on capital accumulation and conditions of raising debt.
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Ushanov, Aleksandr Evgenievich. "On development of stock market instruments for small and medium-sized businesses." Vestnik of Astrakhan State Technical University. Series: Economics 2020, no. 1 (March 31, 2020): 117–24. http://dx.doi.org/10.24143/2073-5537-2020-1-117-124.
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The article focuses on the fact that contribution of enterprises and organizations of the segment of small and medium-sized enterprises to the creation of GDP does not exceed 21.9% in Russia. Entrepreneurial activity remains below the global average, and only 2.9% of the active population show interest in starting their own business, whose involvement in small business in our country is 1.5, 2 and 3 times lower than similar indicators in China, the EU and the United States. Conditions for business development are largely determined by the availability of funding sources. It is shown that one of the problems of small and medium-sized business market segment development is weak availability of bank credit resources. The actual absence of alternative financial sources for small and medium-sized enterprises to bank lending creates serious risks for the economy. The intensification of the use of exchange-traded instruments to finance small and medium-sized business enterprises is very important. The national project “Small and Medium-sized Entrepreneurship and Support of Individual Entrepreneurial Initiative”, the Roadmap of the Bank of Russia for the development of small and medium-sized entrepreneurship financing, the creation of the exchange segment “Growth Sector” on the Moscow exchange, guarantees and sureties of the Small and Medium-sized Entrepreneurship Corporation should implement an effective mechanism to stimulate the entry
of business enterprises into the stock market. It has been stated that there remains a set of unresolved problems hindering the achievement of this goal. In order to overcome them, there have been proposed a number of additional measures for the successful implementation of the conditions created for small and medium-sized enterprises to enter the corporate bond market
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Różański, Jerzy. "Advanced System of SME Financing in Market Economy." Zagreb International Review of Economics and Business 22, s1 (March 1, 2019): 15–23. http://dx.doi.org/10.2478/zireb-2019-0002.
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Abstract Increasing competitiveness of small and medium enterprises, especially in the situation of growing economic globalization in the member countries of European Union and internationalization of activity of such enterprises, requires overcoming numerous obstacles the enterprises have to face. One of the most substantial of them is deficiency of means for the enterprises’ growth, particularly the means earmarked for innovative activity. This is mainly the consequence of lack of knowledge about how the enterprises could gain financial means from the alternative financing sources. This hinders establishing the optimal configuration of financing for an enterprise. Consequently, the purpose of the paper to improve enterprises’ access to external capital so as to be able to carry out the investments oriented towards strengthening of the enterprises and launching innovative products and services. The main result of research (sample of Polish SME) is preparing of advanced system of financing including alternative forms of financing of SME on each stages of their life cycle, connected with multicriteria forms of their assessment.
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Phan, Mai Hong, and Lan Archer. "Corruption and SME financing structure: the case of Vietnamese manufacturing." Journal of Economics and Development 22, no. 2 (May 12, 2020): 265–79. http://dx.doi.org/10.1108/jed-12-2019-0074.
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PurposeCorruption has been evidenced as one of the major factors that drive a firm's dynamics and growth. This study examines the relationship between corruption and financing structure decisions of small and medium-sized enterprises (SMEs) in Vietnam.Design/methodology/approachThe authors use a longitudinal data set from the Vietnam's SME Survey in the period 2007–2013 and adopt the two-stage least squares method to deal with endogeneity.FindingsAfter controlling for endogeneity and firm heterogeneity, the authors find that, overall, corruption does significantly affect the decisions of financing sources. Given that, corruption increases the use of informal debt and decreases the levels of formal debt, owner's equity and retained earnings.Practical implicationsThe findings suggest implications for corruption-combating actions and policies.Originality/valueDifferent from previous studies that either provide evidence of government corruption and a firm's capital structure at the country level or focus on corruption and debt only, we deliver a more comprehensive analysis on the nexus between corruption and various financing sources.
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Berisha, Fahredin. "Funding Challenges of Small and Medium Enterprises in Transition Countries: Kosovo Case Study." Journal of Economics and Management Sciences 3, no. 2 (June 20, 2020): p71. http://dx.doi.org/10.30560/jems.v3n2p71.
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SMEs play a very important role in the development of economies of different countries and they are now considered as a key factor of economic development. They affect unemployment, promote social welfare and can be treated as a promoter of economic growth. The paper addresses the role and importance of financing SMEs in transition countries including Kosovo. The study examines the key factors affecting the increase of SME financing from external sources, namely bank lending since other external sources of financing in Kosovo are scarce and almost non-existent. For the purposes of this paper, data from 215 SMEs surveyed in Kosovo were used, randomly distributed across manufacturing, services and commerce sectors. Data collection was done in the period January-April 2016, and their processing was carried out with SPSS (Social Package for Social Science). In order to have more consistent information during data processing, certain models were used in the paper: Paried-Samples T Test, which was used to investigate the difference between two sets of averages, which indicates that the business plan for the enterprise is relevant to bank loan access. The One Way Anova model was used to test the differences between two or more averages, and through this model is proved that high-profit enterprises have achieved easier access to bank loans. Also following the One Way Anova and Post Hoc LSD test, there were found differences between groups of enterprise by their types, activity and age. The research shows that enterprises with older ages have been able to obtain more easily bank loans. The One Way Anova and Welch-Brown-Forthyse test was used to deal with the level of education of business owners, whereby it was found that owners with a high level of education had easier access to bank loans. Through the Indepedent Samples T Test technique it was found that there is a significant difference between the age groups of the owners based on the mean and standard deviation.
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Golić, Zorica. "ADVANTAGES OF CROWDFUNDING AS AN ALTERNATIVE SOURCE OF FINANCING OF SMALL AND MEDIUM-SIZED ENTERPRISES." ЗБОРНИК РАДОВА ЕКОНОМСКОГ ФАКУЛТЕТА У ИСТОЧНОМ САРАЈЕВУ 1, no. 8 (August 1, 2014): 39. http://dx.doi.org/10.7251/zrefis1408039g.
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The lack of funding, and limited access to it are the basic problems faced by small and medium-sized enterprises (SMEs). Given the great role and importance of SMEs in every national economy, any progress in solving these problems in terms of creating and finding alternative sources of funding should attract great attention in both professional and scientific and the wider socio-political communities.Crowdfunding is an innovative and relatively new concept that connects entrepreneurs and investors through the Internet. This method allows the entrepreneurs to collect funds through the Internet by "open invitation" to finance their projects/ventures and thus raise the necessary funds by relatively small contributions of a relatively large number of investors. As such, crowdfunding is a fast-growing model increasingly debated of in academic circles and the European institutions.This paper will consider crowdfunding as an alternative means of financing SMEs and try to give different aspects of crowdfunding - and explain how it works, what are the advantages of using it for SMEs and thus expand the knowledge on the topic.
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Bamata, Nkombe Herman, and Maxwell A. Phiri. "Optimizing access to external finance by small and medium-sized enterprise start-ups: Towards the development of a conceptual framework." Journal of Governance and Regulation 11, no. 1 (2022): 125–40. http://dx.doi.org/10.22495/jgrv11i1art12.
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This study aims to experimentally analyse how start-up awareness, management skills, and financial providers’ requirements relate to the key drivers of business success. A framework has been developed to increase start-ups’ capacity to obtain external financing (Bamata, 2019). Data were collected by a simple random sample from a survey of 253 SMEs in Pietermaritzburg, South Africa. Data analyses from the questionnaire using the statistical program SmartPLS were carried out utilizing descriptive and inferential analyses and structural equation modelling. It was shown that start-up awareness and management skills positively affect SMEs’ access to government, corporate, and personal/social sources of financing. Seven hypothetical connections were evaluated, and the results were obtained. The suggested framework maps the entrepreneurial awareness and management abilities of a start-up entrepreneur with funding provider needs and gives an idea of the type and optimum funding choices to be applied for the company (Bamata, Govender, & Fields, 2019). By utilising this framework, SME owner-managers would become aware of their financing needs and be ready to choose the most suitable source of external finance.
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Krioni, A. E. "Detective Audit: Methodology for Assessing the Business Reliability of a Small and Medium-Sized Business Entity." Accounting. Analysis. Auditing 5, no. 4 (September 14, 2018): 64–77. http://dx.doi.org/10.26794/2408-9303-2018-5-4-64-77.
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The method of private investigations is probably the most appropriate basis for the implementation of independent external control of commercial enterprises. Indeed, if we ignore the analysis of accounting documents that are perhaps the main and only source of financial activity history for the audited company, the remaining problem of forecasting business risk remains the search for unobvious, hidden from the public eyes factors of economic life of the company. In modern crisis conditions such analysis is difficult and requires new approaches for external control.Aims and objectives. The purpose of the work is to develop methodological provisions for the detective form of the layout of the auditing. The offered method is steady in demand among customers of detectives as it opens new opportunities for the honest business executives. This need for the interaction with the private investigation arises from the uncertainty of clients in the auditing opinion, which is one of the consequence of the direct dependence of the external auditor on the audited organization. A detective, on the contrary, is completely independent and free to collect, analyze any information that has to do with the actual financial and economic activities of the company.Methodology. The legal and institutional framework, the instant breakdown of technical equipment area and financial documentation, the interaction and separation of powers controls — these and about sixty more other most important factors are considered in the article, as essential qualitative characteristics affecting the current assessment of the financial and economic activity of the enterprise or firm.Results. The place of the detective auditing in the theory and practice of the auditor activity is specified. External and internal factors that exert a significant influence on the economic and financial activities of the organization are singled out. As a tool for its implementation, the method of factor analysis is proposed. Application area. The results of the research can be applied to the development of external auditing theory and practice.Conclusions. In the conditions of business opacity, detective auditing is a means of choosing future and reliable counterparties for the auditor’s clients.
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Bockova, Nina. "Research, development and innovations in Czech manufacture of electronic products." Equilibrium 10, no. 4 (December 31, 2015): 163. http://dx.doi.org/10.12775/equil.2015.041.
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The paper deals with the topic of research and development investments and its use in small and medium-sized enterprises SME’s operating in the electronic industry. The aim of the article is to find out the impact of innovation activities on enterprises, especially the influence of the sources of funding for the research activity. The Czech Republic is the geographic segment to be explored. A chapter on theoretical issues is followed by a description of the current situation in the Czech Republic and abroad, and access to legal support for research and development in the business sector. Primary data collected from a survey are analysed in the analytical part. The statistical data processing was done using Statistica 12 software. Some SME’s of chosen group of manufacturing industry focus on research and development performed by their own means, and they searched for the possibility of financing the research from various sources.
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Mosionek-Schweda, Magdalena. "Financing of companies' research and development activities in Poland." Oeconomia Copernicana 2, no. 2 (June 30, 2011): 75–102. http://dx.doi.org/10.12775/oec.2011.009.
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Analyzing the research and development sector (R&D) in Poland, one can observe the increase in entrepreneurs’ interest to undertake R&D activities. According to Central Statistical Office, at the end of 2008 there were 1157 entities that conduct research and development work, including 697 enterprises. The following year, the number of total R&D institutions increased to 1316, whereas the business sector rose to 842 companies (about 20.8%). Greater involvement of entrepreneurs in the R&D sector results, among others, from noticing many benefits associated with this activity. The national authorities as well as European Union’s institutions drew up many programmes for entrepreneurs undertaking R&D activities. Some of these programmes give priority to small and medium-sized businesses offering them a wide range of financial and non-financial support. This policy aims to achieve high economic growth and improve socio-economic situation of society with the participation of enterprises that are orientated at creating and applying innovative solutions in their business operation, products manufactured or services provided. The article aims to present sources of funds available for R&D activities undertaken by companies in Poland, as from government programmes, through the structural funds, to funds set aside by Switzerland and the members of European Economic Area. Despite all these programmes, many companies in Poland still face a financial barrier that prevents their development. It seems that the basic problem is not lack of potential sources of funding for R&D activities but, above all, an insufficient knowledge of financial opportunities and the entrepreneurs’ belief that these funds are beyond their reach. Any form of public support to entrepreneurs is still associated with excessive bureaucracy, too many formal requirements and, finally, a small probability of receiving it. Therefore, enterprises don’t even try to apply for such support. The article presents basic statistics relating to the R&D sector in Poland and the main forms of national and European support for R&D performed within the business sector.
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YAKUBIV, VALENTYNA, YULIIA MAKSYMIV, IRYNA HRYHORUK, NAZARIY POPADYNETS, and IRYNA PIATNYCHUK. "DEVELOPMENT OF RENEWABLE ENERGY SOURCES IN THE CONTEXT OF ENERGY MANAGEMENT." Journal of Vasyl Stefanyk Precarpathian National University 6, no. 3-4 (December 20, 2019): 77–87. http://dx.doi.org/10.15330/jpnu.6.3-4.77-87.
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The paper deals with global trends in energy consumption and renewable energy generation. Worldwide practices in financing of renewable energy production are analysed according to the following dimensions: sources of financing, types of used policy instruments, types of recipients (public or private) and types of financed technologies. The key factors that influence the investment attractiveness of renewable energy sources in the world are presented. Main obstacles impeding the utilisation of potential of renewable energy generation in Ukraine are pointed out from the standpoint of the global development trends, as the experience of economically developed countries are advised to be used for Ukraine. Conditions for investment activity in this field should be created (involving both domestic and foreign investments), stimulating state policy should be implemented, and an energy management based on the international experience should be developed. The problems of renewable energy sources in Ukraine are described, in particular, the presence of investment risk in terms of its components as general economic, legal and financial. In the most developed countries in terms of RES consumption direct public investment is a small proportion of total renewable energy financing, whereas private investment has the major share. A significant obstacle to the possibility of realizing such experience in Ukraine is the presence of investment risk, mainly caused by unstable political conditions (both internal and external). Energy management and monitoring activities of enterprises of various forms of ownership and branch affiliation should be introduced along with the necessity of attracting investments in renewable energy. It is expected that the results presented in this article may be useful for improving the renewable energy development policy both at the country level and at the level of a particular economic entity.
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Gogova Samonikov, Marija, Elena Veselinova, Ilija Gruevski, Risto Fotov, and Zorica Zdraveva. "THE SITUATION WITH THE DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES IN MACEDONIA IN RELATION TO THE SOURCES FOR THEIR FINANCING." Economic Perspectives, no. 1 (October 8, 2021): 66–78. http://dx.doi.org/10.46779/epj.v1i1.6.
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The impact of small and medium-sized enterprises (SMEs) in employment and value added in the Republic of Macedonia registered a slight increase in the period from 2009 to 2013. Just like in other economies in the region, most SMEs work in the wholesale and retail trade sector (44.0%), followed by the manufacturing sector (13.0%) (OECD 2016). Based on the importance of SMEs in the Macedonian economy in general, this paper aims to point out the gap that exists between the well-identified weakness of the Macedonian economy towards stimulating the life expectancy of SMEs on the one hand and their development on the other, emphasized in the forms of the sources of funding available to them. For that purpose are used statistical analyzes and comparisons, and are accepted conclusions about the current situation with the SMEs environment and the forms of financing of SMEs in Macedonia
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Keliuotytė-Staniulėnienė, Greta, and Monika Kukarėnaitė. "Financial Innovation Management: Loan Price in the Crowdfunding and Peer-To-Peer Lending Platforms." Marketing and Management of Innovations, no. 2 (2020): 256–74. http://dx.doi.org/10.21272/mmi.2020.2-19.
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As an alternative to traditional bank financing, companies (especially small and medium-sized) can opt for loans from innovative financial facilities: peer-to-peer lending and crowdfunding platforms. When using these alternative financing opportunities, it is very important to identify the main factors of the business loan interest rate and properly assess the overall cost of borrowing. This paper summarizes the scientific discussion on the issue of innovative business funding sources and one of the most important ratios referred to reasonably compare the price of financing sources and the related expenses. Therefore, the main purpose of this research is to identify the internal and external factors of interest rate on business loans and determine the overall total annual rate of charge for business loans on innovative financing platforms. After the analysis of academic literature and statistical data of crowdfunding and peer-to-peer lending market, the authors used the methods of correlation-regression and factor analysis to identify the factors that determine the interest rate of business loans on crowdfunding and peer-to-peer platforms; and scenario analysis to evaluate the total annual rate of charge for business loans. According to the results of correlation-regression and factor analysis, the summarized factors of business loan interest rate are economic environment, competitive environment, and results of the platform performance. External factors appeared to have a much greater impact on the interest rate for business loans in crowdfunding and peer-to-peer lending platforms than internal. The assessment of the total annual rate of charge for business loans confirmed that the peer-to-peer and crowdfunding platforms offer a lower rate than traditional financing institutions, on the other hand, the total rate at the crowdfunding platforms is higher compared to peer-to-peer lending platforms, due to the higher administrative fees and interest rates. The outcomes of this research expanded the scope of research on the sector of financial innovation. The research revealed the peculiarities of crowdfunding and peer-to-peer lending, the factors that affect a loan interest rate, and the real price that business owners have to pay for borrowed funds. Obtained results could be relevant to both lending platforms and businesses seeking to identify and compare the real cost of traditional and alternative financing. Keywords: financial innovation, alternative financing, financial technologies, factors of interest rate, price of borrowing, the total annual rate of charge for business loans.
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Naumkin, V. A. "FINANCIAL RESOURCES OF SMALL BUSINESSES: INTERNAL AND EXTERNAL FACTORS INFLUENCING THE SOURCES OF THEIR FORMATION." BULLETIN 384, no. 2 (April 15, 2020): 106–10. http://dx.doi.org/10.32014/10.32014/2020.2518-1467.48.
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The development of small business is of great importance for the stable development of the economy of any country. Economically developed small business is the basis of the economy of a developed state, so many research papers are devoted to the study of small business problems. Small businesses, because of their size, are more flexible in responding to all changes in the economy and have a greater potential for development. Recently, according to statistics, there has been a decrease in investment activity in small businesses. In other words, small business has become less invested in fixed assets. The observed crisis phenomena in the economy exacerbate the problem of investment financing and confirm the relevance of research on this topic. According to the heads of small businesses, the main reason for weak investment is the lack of financial resources. There is a wide variety of sources of financial resources. Sources of financial resources of small businesses have their own characteristics. However, small businesses are limited in their choice of sources of financial resources, because not all existing sources of financial resources are available and can be actually used by small businesses. There are a lot of number of factors that determine the final version of the structure of sources of financial resources of a small business. The article highlights the main external and internal factors that determine the structure of the sources of financial resources of small business. Internal factors characterize specificity of the enterprise (the legal form of the business, the sectoral specifics of small business, the stage of the life cycle of a small business and the economic characteristics of the businesses), external – the specifics of the external economic environment and industry, condition of the labor market and unemployment rate, financial and credit policy, investment sphere. The author of the article comes to the conclusion that the stage of the life cycle is one of the most important factors that determine the structure of sources of financial resources of small enterprises, since at different stages of the life cycle, the structure of financial sources of an enterprise differs. Among external factors, the author puts the economic conditions in which a small business operates in the first place. In a stable economic situation, a small business will have access to a wide range of sources of financial resources. In an economic downturn, the availability of debt sources is sharply reduced, due to high risks of non-return of funds, in addition, there is a low investment activity of business. The article describes the influence of each factor.
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Yazdanfar, Darush, and Peter Öhman. "Substitute or complement? The use of trade credit as a financing source among SMEs." Management Research Review 40, no. 1 (January 16, 2017): 10–27. http://dx.doi.org/10.1108/mrr-06-2015-0153.
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Purpose This study aims to investigate trade credit as a financing source among small- and medium-sized enterprises (SMEs), particularly the influence of short-term debt, long-term debt and profitability on the use of such credit. Design/methodology/approach Ordinary least squares (OLS), fixed-effects and generalized method of moments (GMM) system models were used to analyze a large cross-sectional panel data set of 15,897 Swedish SMEs in five industry sectors for the 2009-2012 period. Findings The study provides empirical evidence that long-term debt and profitability each significantly and negatively influence trade credit (i.e. accounts payable) and that short-term debt positively influences trade credit. Notably, while trade credit seems to complement other short-term debt, it replaces long-term debt. Moreover, firm size in terms of sales is positively related and firm age is negatively related to accounts payable. Industry affiliation is another significant explanatory variable. Practical implications The results provide debt holders, potential investors, policymakers and academic researchers with insights into the relationship between trade credit demand, on the one hand, and external financing (i.e. short- and long-term debt) and internal retained earnings (i.e. profit), on the other. From a manager’s perspective, the findings may be important for decision-making regarding trade credit use. Originality/value When investigating trade credit determinants, the literature has seldom distinguished between short- and long-term debt and considered that they may influence the use of trade credit in different ways. The present study adds to the literature by using OLS, fixed-effects and GMM system models to analyze a large cross-sectoral sample in a high-tax country where both bank loans and trade credit are considered important financing instruments.
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Chládková, Helena. "The business environment in the Czech Republic." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 59, no. 2 (2011): 115–20. http://dx.doi.org/10.11118/actaun201159020115.
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The paper deals with a comparison of the business environment in 2004 and 2010. The aim of this paper is to compare opinions of managers of small and medium – sized enterprises on opportunities and threats of external environment and on strengths and weaknesses of internal environment after the integration of the Czech Republic into the European Union, in 2004 and now in 2010.The basic sources of information were 70 SWOT analyses of small and medium – sized enterprises which have been made in 2004 by students of combined form of study, who work in management functions on medium or basic managerial levels and 228 SWOT analyses of small and medium – sized enterprises which have been made in 2010. 77 % of managers from analyzed enterprises identified the integration of the Czech Republic into the EU as an opportunity in 2004 and only 33 % of managers from analyzed enterprises in 2010. The competition as the most important threat was reported in both groups of respondents. Namely 64 % of managers in 2004 and even 82 % of managers in 2010.The paper is a part of solution of the research plan of the FBE MUAF in Brno, MSM 6215648904.
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Krasilnikov, Oleg Yu. "Innovation immunity of Russian economy." Izvestiya of Saratov University. Economics. Management. Law 21, no. 4 (December 16, 2021): 358–65. http://dx.doi.org/10.18500/1994-2540-2021-21-4-358-365.
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Introduction. The article examines the general immunity of the Russian economy to innovation, which is inherent in it at the present stage. It is caused by a number of macro and microeconomic, as well as institutional factors. This was an important reason that did not allow us to achieve a number of ambitious economic goals set by the country’s leaders. Theoretical analysis. The review of empirical and statistical material confirms the negative trends that exist in Russian economy, associated with a decrease in the innovative activity of enterprises and organizations. Among the macroeconomic factors of innovation immunity of the Russian economy, the following are distinguished: a one-sided developed economic structure with a hypertrophied predominance of raw materials and energy-producing industries with a low added value of the final product; insufficient aggregate demand for innovation on the part of the state, firms and households, as well as the lack of investment resources for enterprises and organizations to implement innovation activities. Microeconomic factors of the Russian economy’s immunity to innovation are: lack of internal sources of financing from enterprises; the high cost of credit resources; lack of tax incentives and the lack of effective state support for innovation, especially at the level of small and medium-sized businesses. support for innovation, especially at the level of small and medium-sized businesses. Results. It is concluded that the support of innovation activity requires the protection of property rights, a fair tax and judicial system, the absence of administrative barriers and excessive regulation, the presumption of innocence of the entrepreneur, and general political and economic stability. At the present stage, it is necessary to develop a unified state strategy for innovative development, focused on increasing labor productivity and achieving sustainable economic growth, support innovation, especially at the level of small and medium-sized enterprises.
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Vnukova, Nataliya. "Activation of expansion of access to means of financing implementation of innovative projects of small and medium enterprises." Law and innovations, no. 2 (30) (June 2, 2020): 17–23. http://dx.doi.org/10.37772/2518-1718-2020-2(30)-2.
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Problem setting. A small and medium-sized enterprise (SME), which must be flexible and generate demand for its own innovative products, transforms knowledge into innovative capital. Under these conditions, all areas of intensification of financing of innovative entrepreneurship become especially relevant. In 2020, the Strategy for the Development of Small and Medium-Sized Enterprises in Ukraine expires, so the task is to develop new strategic directions for change, preferably on an innovative basis. The main obstacle to starting a business is the low level of access to finance. The issue of intensifying the financial support of innovative entrepreneurship is relevant due to the shortage of own financial resources of economic entities and the difficulty of attracting investment, the need to reduce the cost of lending. Analysis of resent researches and publications. Zyanko V.V., Pochtovyuk A.B., Pukala R., Volkova N.I., Sviridova K.D. were engaged in problems of financial maintenance of innovative activity of the enterprises, problems of crediting of small and average business in Ukraine. Issues of innovative activity of business are unique in conclusion that the most important obstacle is the problem of unavailability of funds to advance the innovation process at all stages, sources of funding for SMEs studied Kuzmenko A. Yu., Svistun L.A. Target of research. Development of theoretical provisions and practical recommendations for determining the means of enhancing access to finance for SMEs in an innovative society. Article’s main body. The current changes in intensifying the expansion of access to finance in entrepreneurship through the development of lending with state support, the stimulation of the regulator of financial institutions to finance innovative entrepreneurship are considered. An innovative approach to the use of automated DSS Decision Making Helper is presented to assess the level of activation of the expansion of access to funding for the implementation of innovative projects for SMEs. Conclusions and prospects for the development. The economic crisis and significant growth of Fintech services in finance will increase the search for innovative means of financing the innovative development of SMEs, including loans with state support, factoring, financial leasing, venture financing, etc. It is necessary to improve the strategic goals of financial support of innovative entrepreneurship. The use of modern software tools is recommended to be widely used as a direct way to intensify all processes, in particular, to decide on the choice of means of financing the implementation of innovative SME projects.
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Zhornokui, Yurii. "Public legal means of investment of small and medium innovative entrepreneurship in the European Union." Law and innovations, no. 1 (29) (March 31, 2020): 7–13. http://dx.doi.org/10.37772/2518-1718-2020-1(29)-1.
Full textAbstract:
Problem setting. The development of social relations, the economic well-being of the population and the stable social structure of any state in the present circumstances are conditioned by a series of factors, one of which is the development of innovative infrastructure. One of the most important directions of development of the economic sector of our country was the formation of an innovative model of the economy, which puts to law the new tasks of clarifying the purpose and social value of law as a regulator of social relations. Analysis of recent researches and publications. The current state of the study of the selected issues indicates that the sources from which public-law organizations are investing innovative activities of small and medium-sized innovative entrepreneurship in the EU are insufficient. At the same time, the state policy of the EU countries in the scientific and technical sphere is realized through the use of various instruments, which include: legislation, tax policy, size and nature of the allocation of budget funds, including for the implementation of works in priority areas, the formation and maintenance of infrastructure, personnel, etc. Target of research is to identify the public and legal means of investing small and medium innovative entrepreneurship in the EU. Article’s main body. In the EU, the innovative component of public policy encompasses the scope of national scientific institutions (institutes, research centers, university laboratories, etc.). There are government programs that receive partial funding from the state budget. The state is guided by different criterias when deciding on the financing of specific works. First, the prospect of each specific direction is evaluated from the point of view of preserving the country’s achieved position on the world market in the future. Second, the recognition at the governmental level of innovation as a vital factor of economic development, the conduct of a broad government company on the problems of innovation. The current state of regulatory support suggests that structural funds such as the European Regional Development Fund and the European Social Fund should be considered as the main public sources of investment for innovative enterprises. In particular, such funds are implementing EIC Pathfinder Pilot, FET Innovation Launchpad, EIC Transition to Innovation Activity, EIC Accelerator, Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME) etc. Conclusions and prospects for the development. In the EU, the investment of small and medium enterprises is not homogeneous, but a large part of them, despite the large number of investment support tools for such companies, face significant challenges in accessing investment resources. Developing a successful pan-European policy requires an indepth understanding of the problems and specifics of financing the innovation activities of small and medium innovative enterprises in EU Member States.
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Pepur, Sandra, Dujam Kovač, and Marijana Ćurak. "Factors behind trade credit financing of SMEs in Croatia." Zbornik Veleučilišta u Rijeci 8, no. 1 (2020): 59–76. http://dx.doi.org/10.31784/zvr.8.1.11.
Full textAbstract:
Small and medium enterprises (SMEs) contribute to the national economy in terms of employment, added value, knowledge generation, and innovation. However, their potential and in the case of economic downturns even their survival is affected by the difficulties in their access to external financing under acceptable terms and adequate timing and amount. In the case of asymmetric information problems, which make SMEs more sensitive to financial market imperfections, trade credit can be a valuable source of financing. In the European Union, trade credit is among the most relevant external funding sources and it is among the most important alternatives to financial intermediaries’ financing. However, there are substantial differences between the countries with respect to availability and use of trade credit. Therefore, this research examines determining (company-specific and country-specific) factors behind the use of trade credit as a financing source in Croatia. The empirical analysis is based on the data for 1,225 SMEs operating in Croatia in the period from 2008 to 2017 and is done using the panel data methodology. The findings confirm that firms’ characteristics, as well as the characteristics of financial, macroeconomic and legal environment in which the firms operate, influence the use of trade credit in SMEs in Croatia. The paper contributes to relatively scarce empirical evidence on the determinants of trade credit use by SMEs in South-East European countries.
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Kolesnikova, Irina. "Demography of small and medium enterprises in Belarus." Nierówności społeczne a wzrost gospodarczy 67, no. 3 (2021): 71–83. http://dx.doi.org/10.15584/nsawg.2021.3.6.
Full textAbstract:
Business demography is an important information basis for making strategic decisions in the business area. This allows institutional bodies to optimally adjust their policies regarding the development of entrepreneurship nationally in such areas as regional development, employment, unemployment, education, sources of financing for small and medium-sized businesses, innovation policy, simplification of bureaucratic procedures, etc. Business demographic indicators characterise the dynamics of economic development through the adaptation of economic structures to changing market conditions. In addition, they assess the potential contribution that new start-ups can make to the important employment problem through job creation. At the same time, the organisation is primarily seen as a community of people, and capital optimisation is presented as an addition to the optimisation of people. In the study, in addition to analysing the classic indicators of business demography such as the activity population of enterprises, “birth”, “survival” (up to five years after birth), “death”, etc., a new indicator was proposed for implementation: the natural increase rate in the number of organisations in Belarus calculated both for the economy and for the types of economic activity. The study will help to develop recommendations for developing measures in the field of entrepreneurship development using a regression model that identifies the relationship between changes in business demographics and employment. A set of measures to support entrepreneurship are becoming an integral part of national economic policy, a powerful factor in increasing the level of “survival” of enterprises and increasing the share of “fast-growing” organisations. This contributes to the achievement of sustainable development goals. Stimulating development and support for small business, with the ability to quickly respond to changes in market conditions, will help provide the “coronavirus” economy with the necessary flexibility, an especially important factor in the context of COVID-19.