Determinants and impact of bank financing on the economic and non-economic performance of SMEs in Bangladesh

Small and Medium Enterprises (SMEs) are seen as the most important drivers of country economic. Lack of capital will affect the contributions of SMEs to economic development. Thereby, bank financing may help SMEs in getting more funds to expand their business. However, some SMEs do not believe th...

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Main Author:	Akther, Nafiza
Format:	Thesis
Language:	English
Published:	2020
Subjects:	Small business - Finance - Case studies - Bangladesh Bangladesh - Economic conditions
Online Access:	http://psasir.upm.edu.my/id/eprint/99108/1/NAFIZA%20AKTHER%20-%20IR.pdf
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id	my-upm-ir.99108
record_format	uketd_dc
spelling	my-upm-ir.991082023-04-04T00:56:07Z Determinants and impact of bank financing on the economic and non-economic performance of SMEs in Bangladesh 2020-03 Akther, Nafiza Small and Medium Enterprises (SMEs) are seen as the most important drivers of country economic. Lack of capital will affect the contributions of SMEs to economic development. Thereby, bank financing may help SMEs in getting more funds to expand their business. However, some SMEs do not believe that this type of financing can help to improve their businesses. Hence, this study aims to identify the determinant factors of SMEs‟ bank financing. This study also examines the impact of bank financing on SMEs' economic and non-economic performances in Bangladesh. In pursuit of these objectives, this study adopts a quantitative method by distributing 403 questionnaires to the SMEs in Bangladesh. The data are collected explicitly from the owners and managers based on the availability and easy access to the SMEs. In doing so, this study uses a non-probability sampling technique. Besides, the Statistical Package for the Social Sciences (SPSS) is used to run the analysis. Furthermore, the Pecking Order Theory and Agency Theory are applied to support the study's proposed relationships between variables and hypotheses. The results of this study show that all the hypotheses are supported. The first seven hypotheses are developed under hypothesis one, revealing a significant relationship between determinants and bank financing. It indicates that SMEs take into account both internal and external factors during decisions on bank financing. Moreover, the results of hypotheses two and three are also supported and reveal that bank financing has a positive impact on SMEs' economic and non-economic performances in Bangladesh. The study has significant theoretical and contextual contributions and implications on the banks' governing authorities, the central bank's financial policymakers, and SMEs. Conclusively, the findings also provide a series of guidelines to the SMEs in Bangladesh regarding on the determinant factors and considerations for availing bank financing. Small business - Finance - Case studies - Bangladesh Bangladesh - Economic conditions 2020-03 Thesis http://psasir.upm.edu.my/id/eprint/99108/ http://psasir.upm.edu.my/id/eprint/99108/1/NAFIZA%20AKTHER%20-%20IR.pdf text en public masters Universiti Putra Malaysia Small business - Finance - Case studies - Bangladesh Bangladesh - Economic conditions Mohd Ashhari, Zariyawati
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
advisor	Mohd Ashhari, Zariyawati
topic	Small business - Finance - Case studies - Bangladesh Bangladesh - Economic conditions
spellingShingle	Small business - Finance - Case studies - Bangladesh Bangladesh - Economic conditions Akther, Nafiza Determinants and impact of bank financing on the economic and non-economic performance of SMEs in Bangladesh
description	Small and Medium Enterprises (SMEs) are seen as the most important drivers of country economic. Lack of capital will affect the contributions of SMEs to economic development. Thereby, bank financing may help SMEs in getting more funds to expand their business. However, some SMEs do not believe that this type of financing can help to improve their businesses. Hence, this study aims to identify the determinant factors of SMEs‟ bank financing. This study also examines the impact of bank financing on SMEs' economic and non-economic performances in Bangladesh. In pursuit of these objectives, this study adopts a quantitative method by distributing 403 questionnaires to the SMEs in Bangladesh. The data are collected explicitly from the owners and managers based on the availability and easy access to the SMEs. In doing so, this study uses a non-probability sampling technique. Besides, the Statistical Package for the Social Sciences (SPSS) is used to run the analysis. Furthermore, the Pecking Order Theory and Agency Theory are applied to support the study's proposed relationships between variables and hypotheses. The results of this study show that all the hypotheses are supported. The first seven hypotheses are developed under hypothesis one, revealing a significant relationship between determinants and bank financing. It indicates that SMEs take into account both internal and external factors during decisions on bank financing. Moreover, the results of hypotheses two and three are also supported and reveal that bank financing has a positive impact on SMEs' economic and non-economic performances in Bangladesh. The study has significant theoretical and contextual contributions and implications on the banks' governing authorities, the central bank's financial policymakers, and SMEs. Conclusively, the findings also provide a series of guidelines to the SMEs in Bangladesh regarding on the determinant factors and considerations for availing bank financing.
format	Thesis
qualification_level	Master's degree
author	Akther, Nafiza
author_facet	Akther, Nafiza
author_sort	Akther, Nafiza
title	Determinants and impact of bank financing on the economic and non-economic performance of SMEs in Bangladesh
title_short	Determinants and impact of bank financing on the economic and non-economic performance of SMEs in Bangladesh
title_full	Determinants and impact of bank financing on the economic and non-economic performance of SMEs in Bangladesh
title_fullStr	Determinants and impact of bank financing on the economic and non-economic performance of SMEs in Bangladesh
title_full_unstemmed	Determinants and impact of bank financing on the economic and non-economic performance of SMEs in Bangladesh
title_sort	determinants and impact of bank financing on the economic and non-economic performance of smes in bangladesh
granting_institution	Universiti Putra Malaysia
publishDate	2020
url	http://psasir.upm.edu.my/id/eprint/99108/1/NAFIZA%20AKTHER%20-%20IR.pdf
_version_	1776100294215598080

Determinants and impact of bank financing on the economic and non-economic performance of SMEs in Bangladesh

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