IDEAS home Printed from https://ideas.repec.org/a/ids/ijesbu/v54y2025i1p48-82.html
   My bibliography  Save this article

Small and medium-sized enterprise financing in the manufacturing industry: demand-side determinants of bank credit access in Mozambique

Author

Listed:
  • Benedito José Murambire Júnior
  • Pedro Fontes Falcão
  • José Paulo Esperança

Abstract

This paper examines the demand-side factors that influence small and medium-sized enterprises' (SMEs) access to bank financing in the manufacturing industry in Mozambique. A mixed-methods sequential explanatory design was applied, starting with quantitative research on a sample of 347 SMEs followed by qualitative research on 30 SMEs. Managers' experience, firm size, gross profit, and equity were found to be the only statistically significant determinants of SMEs' access to bank credit. The most important themes identified by the qualitative research were risk tolerance, financial literacy, financial management skills, loan terms offered, service quality, lessons learned, cultural aspects, managers' beliefs, and internal aspects. This study fills a research gap by examining the demand-side factors that influence SMEs' access to bank financing in the manufacturing industry in developing economies. The results provide a deeper understanding of which determinants are crucial in order to ensure effective strategies and tools in developing countries. An important implication is that policymakers need to implement holistic approaches that prioritise demand-side factors.

Suggested Citation

  • Benedito José Murambire Júnior & Pedro Fontes Falcão & José Paulo Esperança, 2025. "Small and medium-sized enterprise financing in the manufacturing industry: demand-side determinants of bank credit access in Mozambique," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 54(1), pages 48-82.
  • Handle: RePEc:ids:ijesbu:v:54:y:2025:i:1:p:48-82
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=142889
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:ids:ijesbu:v:54:y:2025:i:1:p:48-82. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=74 .

    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.