IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v16y2023i11p477-d1277013.html
   My bibliography  Save this article

Determinants of Access to Bank Financing in SMEs in Mexico

Author

Listed:
  • Artemio Jiménez-Rico

    (Department of Management and Business Administration, University of Guanajuato, Guanajuato 36250, Mexico)

  • Claudia Susana Gómez-López

    (Department of Economics and Finance, University of Guanajuato, Guanajuato 36250, Mexico)

  • Johanan Zamilpa

    (Department of Management and Business Administration, University of Guanajuato, Guanajuato 36250, Mexico)

Abstract

Several empirical studies indicate that the lack of financing is one of the main barriers that affects the economic growth of small and medium enterprises (SMEs). The main objective of this investigation was to determine to what extent the economic sector, the enterprise size, the characteristics inherent to the enterprise, the legal status, the variables linked to the performance of the enterprise, and the attributes of the owner influence the access to the bank financing of SMEs in Mexico. Using a discrete-response probit regression model, the impact of enterprise characteristics on the probability of obtaining a bank loan was determined. The data collected are from the Enterprise Surveys of Mexico, carried out by the World Bank. The sample of 1480 enterprises is representative by enterprise size, by economic sector, and by region. The research has a quantitative approach with a correlational scope, and a nonexperimental and transectional design. One of the main results highlights that the determinants with the greatest influence on access to bank financing are: the age, the small size, foreign participation, and the manufacturing sector. These results are consistent with other empirical studies, as well as with the pecking-order theory and the financial life-cycle theory.

Suggested Citation

  • Artemio Jiménez-Rico & Claudia Susana Gómez-López & Johanan Zamilpa, 2023. "Determinants of Access to Bank Financing in SMEs in Mexico," JRFM, MDPI, vol. 16(11), pages 1-29, November.
  • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:11:p:477-:d:1277013
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/16/11/477/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1911-8074/16/11/477/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brian T. Gregory & Matthew W. Rutherford & Sharon Oswald & Lorraine Gardiner, 2005. "An Empirical Investigation of the Growth Cycle Theory of Small Firm Financing," Journal of Small Business Management, Taylor & Francis Journals, vol. 43(4), pages 382-392, October.
    2. Andrea F. Presbitero & Roberta Rabellotti & Claudia Piras, 2014. "Barking up the Wrong Tree? Measuring Gender Gaps in Firm's Access to Finance," Journal of Development Studies, Taylor & Francis Journals, vol. 50(10), pages 1430-1444, November.
    3. Ciaran Mac an Bhaird & Brian Lucey, 2014. "Culture’s influences: An investigation of inter-country differences in capital structure," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 14(1), pages 1-9, March.
    4. Petersen, Mitchell A & Rajan, Raghuram G, 1994. "The Benefits of Lending Relationships: Evidence from Small Business Data," Journal of Finance, American Finance Association, vol. 49(1), pages 3-37, March.
    5. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    6. Graham C. Hall & Patrick J. Hutchinson & Nicos Michaelas, 2004. "Determinants of the Capital Structures of European SMEs," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 31(5‐6), pages 711-728, June.
    7. Graham C. Hall & Patrick J. Hutchinson & Nicos Michaelas, 2004. "Determinants of the Capital Structures of European SMEs," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 31(5-6), pages 711-728.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Myint Moe Chit & Marian Rizov, 2024. "SMEs' diversification of financing sources: Strategy or desperation?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 3123-3146, July.
    2. Maté, María Luz. & Hernández, Ginés. & Sánchez, Javier. & Mínguez, Antonio., 2013. "¿Hay efectos de interacción regional en el comportamiento financiero de las PyME?," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(320), pages 841-867, octubre-d.
    3. Joaquim J.S. Ramalho & Jacinto Vidigal da Silva, 2009. "A two-part fractional regression model for the financial leverage decisions of micro, small, medium and large firms," Quantitative Finance, Taylor & Francis Journals, vol. 9(5), pages 621-636.
    4. Apostolos Dasilas & Nicolas Papasyriopoulos, 2015. "Corporate governance, credit ratings and the capital structure of Greek SME and large listed firms," Small Business Economics, Springer, vol. 45(1), pages 215-244, June.
    5. Mustafa Caglayan & Abdul Rashid, 2010. "The response of firms' leverage to uncertainty: Evidence from UK public versus non-public firms," Working Papers 2010019, The University of Sheffield, Department of Economics, revised Oct 2010.
    6. Lisana B. Martinez & M. Belén Guercio & Aurelio F. Bariviera, 2022. "A meta‐analysis of SMEs literature based on the survey on access to finance of enterprises of the European central bank," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 1870-1885, April.
    7. Basha, Shabeen Afsar & Bennasr, Hamdi & Goaied, Mohamed, 2023. "Financial literacy, financial development, and leverage of small firms," International Review of Financial Analysis, Elsevier, vol. 86(C).
    8. Mario Tirelli, 2021. "On the optimal investment finance of small businesses," Small Business Economics, Springer, vol. 56(4), pages 1639-1665, April.
    9. Ginés Hernández-Cánovas & Johanna Koëter-Kant, 2010. "The institutional environment and the number of bank relationships: an empirical analysis of European SMEs," Small Business Economics, Springer, vol. 34(4), pages 375-390, May.
    10. Hubert Tchakoute Tchuigoua, 2015. "Capital Structure of Microfinance Institutions," Journal of Financial Services Research, Springer;Western Finance Association, vol. 47(3), pages 313-340, June.
    11. Massimiliano Cerciello & Francesco Busato & Simone Taddeo, 2023. "The effect of sustainable business practices on profitability. Accounting for strategic disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 802-819, March.
    12. Mustafa Caglayan & Abdul Rashid, 2014. "The Response Of Firms' Leverage To Risk: Evidence From Uk Public Versus Nonpublic Manufacturing Firms," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 341-363, January.
    13. Mulindi, Hillary & Josea, Kiplangat & Tiriongo, Samuel, 2022. "What drives MSME's credit choices? Business versus personal loan account utilization in Kenya," KBA Centre for Research on Financial Markets and Policy Working Paper Series 55, Kenya Bankers Association (KBA).
    14. Matias, Fernanda & Serrasqueiro, Zélia, 2017. "Are there reliable determinant factors of capital structure decisions? Empirical study of SMEs in different regions of Portugal," Research in International Business and Finance, Elsevier, vol. 40(C), pages 19-33.
    15. Rashid Khalil* & Dr. Mohd. Sollehudin Bin Shuaib & Dr. Suhaimi Bin Ishak, 2018. "Bank-SMEs Relationship: A Critical Review of Firm & Industry Specific Determinants Influencing Banks’ Performance," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 4(12), pages 777-791, 12-2018.
    16. Paola Bongini & Annalisa Ferrando & Emanuele Rossi & Monica Rossolini, 2021. "SME access to market-based finance across Eurozone countries," Small Business Economics, Springer, vol. 56(4), pages 1667-1697, April.
    17. Francisco-Javier Canto-Cuevas & María-José Palacín-Sánchez & Filippo Di Pietro, 2019. "Trade Credit as a Sustainable Resource during an SME’s Life Cycle," Sustainability, MDPI, vol. 11(3), pages 1-16, January.
    18. James Agyei & Shaorong Sun & Eugene Abrokwah, 2020. "Trade-Off Theory Versus Pecking Order Theory: Ghanaian Evidence," SAGE Open, , vol. 10(3), pages 21582440209, July.
    19. Diana Hechavarría & Charles Matthews & Paul Reynolds, 2016. "Does start-up financing influence start-up speed? Evidence from the panel study of entrepreneurial dynamics," Small Business Economics, Springer, vol. 46(1), pages 137-167, January.
    20. Ebenezer Bugri Anarfo, 2015. "Determinants of Capital Structure of Banks: Evidence from Sub-Sahara Africa," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(4), pages 624-640, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:16:y:2023:i:11:p:477-:d:1277013. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.