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Determinants of perceived bank financing accessibility for SMEs: evidence from an emerging market

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  • Aysa Ipek Erdogan

Abstract

To contribute to the small and medium-sized enterprises (SMEs) financing literature, this paper uses a unique sample of 492 Turkish SMEs to analyse the firm-level determinants of SME perceptions of bank financing accessibility. Logistic regression results reveal that older and relatively more innovative firms are more positive about their ability to secure bank loans, as are SMEs that have longer relationships with their oldest banks. Firms with two owners are more inclined than firms with a single owner and firms with three or more owners to perceive accessing bank loans as easy. This finding signals that although bank loan applications of firms with two owners have higher credibility than those of firms with a single owner, having more than two owners creates more complex agency problems for banks. Compared with firms incurring a loss, firms that make a profit or break even perceive it to be easier to obtain bank financing. SMEs in the service industry are more positive about accessing bank loans than are firms in manufacturing and other industries.

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  • Aysa Ipek Erdogan, 2019. "Determinants of perceived bank financing accessibility for SMEs: evidence from an emerging market," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 690-716, January.
    • Handle: RePEc:taf:reroxx:v:32:y:2019:i:1:p:690-716
    DOI: 10.1080/1331677X.2019.1578678
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    Cited by:

    1. Amon Simba & Mahdi Tajeddin & Léo-Paul Dana & Domingo E. Ribeiro Soriano, 2024. "Deconstructing involuntary financial exclusion: a focus on African SMEs," Small Business Economics, Springer, vol. 62(1), pages 285-305, January.
    2. Sadia Noor Khan, 2024. "How bank‐specific factors affect access to financing for small and medium enterprises: Evidence from an emerging economy," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 2095-2115, April.
    3. Qiubin Huang & Mengyuan Xiong & Ming Xiao, 2022. "Does managerial ability affect corporate financial constraints? Evidence from China," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 3731-3753, December.
    4. Rozina Akther, 2022. "Factors associated with small and medium enterprise financing: a study from Bangladesh," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 265-277, December.
    5. Daniel Bamfo, 2022. "Microfinance Impacts and SME’S: Evidence from Ayawaso West Municipality, Ghana," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(1), pages 724-731, January.

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