A Structural Model of Production Financing Barriers in Small and Medium-Sized Enterprises
Subject Areas : International Journal of Finance, Accounting and Economics Studies
mansour nouri
1
,
Mehrdad Hosseini Shakib
2
*
,
Abbas Khamseh
3
1 - Ph.D. Candidate, Department of Industrial Management, Karaj Branch, Islamic Azad University, Karaj, Iran
2 - Department of Industrial Management, Karaj Branch, Islamic Azad University, Karaj, Iran
3 - Department of Industrial Management, Karaj Branch, Islamic Azad University, Karaj, Iran
Keywords: Small and Medium-Sized Enterprises, Production Financing Barriers, Investment, Structural Equation Modeling,
Abstract :
Abstract
Purpose: This study aimed to investigate the challenges hindering production financing in small and medium-sized enterprises (SMEs) and develop a structural model to illustrate the interconnections among these challenges.
Design/methodology/approach: An exploratory sequential mixed methods design was employed. In the qualitative phase, key dimensions and indicators were identified through 15 expert interviews using thematic analysis. In the quantitative phase, a questionnaire based on the qualitative findings was developed and administered to 60 managers and specialists from companies located in industrial parks. Structural equation modeling (SEM) using PLS software was utilized for data analysis.
Findings: The final financing barrier model comprised 66 indicators across ten dimensions. The most critical dimensions identified were legal and political factors, credit evaluation and risk perception, and alternative financing options. The study found that implementing multiple strategies, focusing on changes in the legal and institutional framework, creating new approaches to risk and credit analysis, introducing new forms of financing, and developing technological and financial infrastructure could contribute to improving SMEs'access to necessary financial resources.
Originality/value: This study contributes to the literature by developing a comprehensive structural model of production financing barriers for SMEs in the manufacturing sector. The findings provide valuable insights for policymakers, financial institutions, and SMEs to improve access to financial resources and enhance the growth and sustainability of small and medium-sized enterprises. The structural model developed in this study offers a novel perspective on the interrelationships between various financing barriers, enabling more targeted and effective interventions.
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