presenting the financing model for small and medium industries and examining the problems and solutions
Subject Areas :
Industrial Management
Sadegh Rezaei Monfared
1
,
Seyed Javad Iranban
2
,
Reza Radfar
3
,
Ali Hajiha
4
1 - PhD Candidate in Industrial Management, Science and Research Unit, Islamic Azad University, Tehran, Iran
2 - Associate Professor, Shiraz Branch
Islamic Azad University, Shiraz , Iran
3 - Technology Management, Faculty of Management and Economy, Azad University of Science and Research, Tehran, Iran
4 - Assistant Professor, Department of Industrial Management, North Tehran Branch, Islamic Azad University, Tehran, Iran
Received: 2023-05-14
Accepted : 2023-08-28
Published : 2023-09-10
Keywords:
Dynamic system,
small and medium enterprises,
financing,
Abstract :
AbstractFinancing has always been one of the main challenges of creating and developing start-up businesses and small economic industries. Therefore, the purpose of the current research is to identify and present a model for financing small and medium industries with the approach of evaluation laboratory and decision test based on the process of interpretive structural modeling and Fuzzy Dimetal. This article deals with the design of different scenarios in the financing of small and medium enterprises. For this reason, taking into account the previous studies and the fuzzy screening method, a dynamic model has been developed to extract effective factors on the financing of small and medium enterprises and to specify the cause-effect circles. Then, using structural modeling technique and Fuzzy Demetall, relationships and levels between them, the amount of influential and influential coefficients have been determined and included in the model, finally, in order to test the accuracy of the model and determine the behavior of state and rate variables, we collected Information from 30 small and medium-sized enterprises has been requested to know the new methods of financing in a period of 12 months, which was evaluated by analyzing the behavior of the variables in the framework of the model, as well as the sensitivity analysis, and the validity of the designed dynamic model. The results showed that small and medium enterprises can benefit from the designed model and scenarios for optimal financing of their business.
References:
Abdulsaleh, A. M., & Worthington, A. C. (2013). Small and medium-sized enterprises financing: A review of literature. International Journal of Business and Management, 8(14), 36.
Abe, M., Troilo, M., & Batsaikhan, O. (2015). Financing small and medium enterprises in Asia and the Pacific. Journal of Entrepreneurship and Public Policy, 4(1), 2-32.
Azar, A., & Khadivar, A. (2010). Application of System Dynamics Approach in Higher Education Road Mapping and Policy Making Process. Journal of Science and Technology Policy, 2(4), 1-23.
Barth, J. R., Lin, D., & Yost, K. (2011). Small and medium enterprise financing in transition economies. Atlantic Economic Journal, 39, 19-38.
Broumand Jazi, SH. (2021). The SMEs’ Role in Industrial Development Based on the Diffusion Process Modeling. Industrial Economics Research Quarterly, 5 (15),63-74. doi: 10.30473/indeco.2021.7959.
Cainelli, G., Giannini, V., & Iacobucci, D. (2020). Small firms and bank financing in bad times. Small Business Economics, 55, 943-953.
Charkhchi, R., toloi, A., & Alborzi, M. (2019). Designing a Dynamic Model for Strategic Evaluation of Innovation with a Multiple Scenario Approach. Strategic Management Researches, 25(72), 13-40.
Cook, P., & Nixson, F. (2000). Finance and small and medium-sized enterprise development. Manchester: Institute for Development Policy and Management, University of Manchester.
Eskandari, Bahman; Vazifeh Doost, Hossein; Jafari, Paryvash and Musa Khani, Morteza. (2021). The Impact of Entrepreneurship Financing Methods on Collective Participation in Knowledge-Based Businesses. Financial Economics, 15(57), 259-284. doi: 10.30495/fed.2021.687930
Feizpour, M., Mahmoudi, V., & Emami Meybodi, M. (2009). High-Growth Small firms and their Characteristics Evidence from Manufacturing Small Firms in Iran During the Third Development Plan. Economics Research, 9(35), 155-173.
Forte, R., & Salomé Moreira, A. (2018). Financial constraints and small and medium-sized firms’ export propensity: evidence from Portuguese manufacturing firms. International Journal of the Economics of Business, 25(2), 223-241.
Ghasemi Ali, Ilmi Moghadam Mustafa. (2008). Increasing the competitiveness of small and medium enterprises and their financing, emphasizing the development of a cluster approach. Economic magazine (bimonthly review of economic issues and policies), 9 (93 and 94), 71-90
Golzari Arasteh, Elham, (2021). "Simulation of system dynamics in drug supply chain (case study of Ave Sina Pharmaceutical Company, Hamedan)", M.A Thesis, Islamic Azad University.
Hang, Y., Sarfraz, M., Khalid, R., Ozturk, I., & Tariq, J. (2022). Does corporate social responsibility and green product innovation boost organizational performance? a moderated mediation model of competitive advantage and green trust. Economic research-Ekonomska istraživanja, 35(1), 5379-5399.
Ismail Zadeh, Ali & Amiri, Hamideh. (2018). The effect of financial resources on the growth of small and medium enterprises. Financial Economics, 12(44), 143-160.
Jafari, S. M., & Poor Zanjani, P. (2022). Factors Affecting the Interest of Individuals to Participate and Invest in Social Crowdfunding Projects. Journal of Asset Management and Financing, 10(3), 95-118. doi: 10.22108/amf.2022.132608.1722
Karimi, A., & Bozarjomehri, S. (2013). Analyzing the Financing Barriers to Small and Medium Enterprises. Journal of Entrepreneurship Development, 6(1), 125-144. doi: 10.22059/jed.2013.36253
Kaya, O., & Masetti, O. (2019). Small‐and medium‐sized enterprise financing and securitization: Firm‐level evidence from the Euro area. Economic inquiry, 57(1), 391-409.
Khosroanjom, D., Rajab Zadeh Qatari, A., Azar, A., & Moghbel, A. (2021). Integrating Fuzzy Analytic Hierarchy Process and Fuzzy DEMATEL to Investigate Service Capabilities in Iranian Small Enterprises: A Resource-Based Perspective. The Journal of Productivity Management, 15(1(56) Spring), 23-53. doi: 10.30495/qjopm.2020.1875024.2572
Kiarsi Heydar, P., Radfar, R., Alborzi, M., & Toloi, A. (2019). Simulation of Enhanced Oil Recovery Technology RoadMapping with System Dynamics Method. Strategic Management Researches, 24(71), 89-117.
Laleh, S., Shadnoush, N., & Toloie Ashlaghi, A. (2019). Designing of a model for measurement of technological capabilities in cost valuation of research and development processes for knowledge-based companies applying for admission to the Stock Market. Financial Engineering and Portfolio Management, 10(40), 201-220.
Mahmoudi, V., Babaei, A., & Abbasian, E. (2023). Ranking of financing alternatives for small and medium enterprises according to credit risks. The Journal of Economic Policy, 14(28), 217-246. doi: 10.22034/epj.2023.19287.2372
Mansouri, S. A., Farazmand, H., & Afghah, M. (2021). Investigation of economic resilience in small and medium industries of Khuzestan province due to SARS-CoV-2 (Corona) Epidemic. Stable Economy Journal, 2(3), 1-30. doi: 10.22111/sedj.2021.40408.1153
Mosleh Shirazi, A., Maleki, B., Khalifeh, M., & Ramezani Moghadam, A. (2018). Modeling Performance of Financial System Using System Dynamics Approach: A Case Study on a Sand and Gravel Firm. Journal of Asset Management and Financing, 6(1), 51-72. doi: 10.22108/amf.2017.21331
Mostafazadeh, Armin. (2015). the model of financing small and medium enterprises - an analysis of the concept and importance of financing small and medium enterprises, Islamic Council Research Center.
Motamani, Alireza and Tabgian, Nima. (2015). Identifying and prioritizing financing methods for small and medium businesses according to the life cycle of the company. Financial Management Perspective, 5(11), 79-90.
Noori, R., Fathi, S., & Yeganeh, L. (2016). Identification of the Causes of Timely Availability of Working Capital Problem for Small and Medium Size Enterprises in Iran. Journal of Asset Management and Financing, 4(3), 1-16. doi: 10.22108/amf.2016.20644
Nosrati Barandagh, B., Toloie, A., Sadeh, E., & Aminisabegh, Z. (2020). Provide a dynamic model of financing small and medium enterprises (SMEs) with DANP approach. Financial Engineering and Portfolio Management, 11(44), 154-187.
Oghosanine, E. E. (2022). SME Financing: Understanding the Barriers and Potentials for Entrepreneurs–Developing and Under-Developed World Perspectives. In Microfinance and Sustainable Development in Africa(pp. 207-233). IGI Global.
Olfat, L., & Shahryari Nia, A. (2014). Interpretive Structural Modeling of Effective Factors of Partner Selection in Agile Supply Chain. Research in Production and Operations Management, 5(2), 128-109.
Rao, P., Kumar, S., Chavan, M., & Lim, W. M. (2023). A systematic literature review on SME financing: Trends and future directions. Journal of Small Business Management, 61(3), 1247-1277.
Sadeghfalah, R., & Rezaie Dolatabadi, H. (2014). Analysis of big Shareholders' Perspective on Block Divestiture of Shares in Business Financing Through Matching Method (Tehran Stock Exchange as A Case Study). Journal of Asset Management and Financing, 2(2), 39-64.
Sadriniya, Mohammad; Mirasadi, Samaneh and Verwani, Mohsen.(2009). Different methods of financing small and medium enterprises at different stages of their life cycle. Rushd Technology Quarterly, 5(19).
Safi Dastjerdi, D., Tayebi, K., & Elahi, N. (2021). Loan Interest Rate Uncertainty and Financing SMEs Listed in Tehran Stock Exchange. Journal of Asset Management and Financing, 9(2), 1-20. doi: 10.22108/amf.2020.124509.1578
Seifollahi, N., & EbrahimiKharajo, V. (2022). Investigating social banking in the world for small industries and providing a solution on how to generalize it in Ardabil. Financial Economics, 16(59), 75-104. doi: 10.30495/fed.2022.694714
Setayesh, H., Memaranjad, A., Hejbarkiani, K., & Torabi, T. (2022). Studying the Impact of Small and Medium-Sized Manufacturing Industries on the Growth of Industrial Value Added in Iran’s Economy. Financial Economics, 16(59), 221-252. doi: 10.30495/fed.2022.694720
Titiyal, R., Bhattacharya, S., & Thakkar, J. J. (2019). The distribution strategy selection for an e-tailer using a hybrid DANP VIKOR MCDM model. Benchmarking: An International Journal, 26(2), 395-433.
Toloie Ashlaghi, Abbas & Biglari, Elnaz. (2010). Presented a dynamic Model to simulate the Balanced Score Card with the goal of efficient Strategies (Case study: Mahan air). Management Accounting, 3(6), 89-103.
Yazdani, M., & Pirpour, H. (2017). Evaluating Effects of Exchange Rate Uncertainty on Financing of Firms and Foreign Direct Investment in Iran. Economics Research, 17(67), 35-65. doi: 10.22054/joer.2018.8563
Yoshino, N., & Taghizadeh-Hesary, F. (2018). The role of SMEs in Asia and their difficulties in accessing finance(No. 911). ADBI Working Paper Series.
Zolfaghari, R., Tashakori, N., & Eram, A. (2022). Designing Collaterals Assessment Model to Finance Technological Projects and SMEs by Adaptive Neural Fuzzy Inference System (ANFIS). Financial Research Journal, 24(3), 453-479. doi: 10.22059/frj.2022.313263.1007094
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Abdulsaleh, A. M., & Worthington, A. C. (2013). Small and medium-sized enterprises financing: A review of literature. International Journal of Business and Management, 8(14), 36.
Abe, M., Troilo, M., & Batsaikhan, O. (2015). Financing small and medium enterprises in Asia and the Pacific. Journal of Entrepreneurship and Public Policy, 4(1), 2-32.
Azar, A., & Khadivar, A. (2010). Application of System Dynamics Approach in Higher Education Road Mapping and Policy Making Process. Journal of Science and Technology Policy, 2(4), 1-23.
Barth, J. R., Lin, D., & Yost, K. (2011). Small and medium enterprise financing in transition economies. Atlantic Economic Journal, 39, 19-38.
Broumand Jazi, SH. (2021). The SMEs’ Role in Industrial Development Based on the Diffusion Process Modeling. Industrial Economics Research Quarterly, 5 (15),63-74. doi: 10.30473/indeco.2021.7959.
Cainelli, G., Giannini, V., & Iacobucci, D. (2020). Small firms and bank financing in bad times. Small Business Economics, 55, 943-953.
Charkhchi, R., toloi, A., & Alborzi, M. (2019). Designing a Dynamic Model for Strategic Evaluation of Innovation with a Multiple Scenario Approach. Strategic Management Researches, 25(72), 13-40.
Cook, P., & Nixson, F. (2000). Finance and small and medium-sized enterprise development. Manchester: Institute for Development Policy and Management, University of Manchester.
Eskandari, Bahman; Vazifeh Doost, Hossein; Jafari, Paryvash and Musa Khani, Morteza. (2021). The Impact of Entrepreneurship Financing Methods on Collective Participation in Knowledge-Based Businesses. Financial Economics, 15(57), 259-284. doi: 10.30495/fed.2021.687930
Feizpour, M., Mahmoudi, V., & Emami Meybodi, M. (2009). High-Growth Small firms and their Characteristics Evidence from Manufacturing Small Firms in Iran During the Third Development Plan. Economics Research, 9(35), 155-173.
Forte, R., & Salomé Moreira, A. (2018). Financial constraints and small and medium-sized firms’ export propensity: evidence from Portuguese manufacturing firms. International Journal of the Economics of Business, 25(2), 223-241.
Ghasemi Ali, Ilmi Moghadam Mustafa. (2008). Increasing the competitiveness of small and medium enterprises and their financing, emphasizing the development of a cluster approach. Economic magazine (bimonthly review of economic issues and policies), 9 (93 and 94), 71-90
Golzari Arasteh, Elham, (2021). "Simulation of system dynamics in drug supply chain (case study of Ave Sina Pharmaceutical Company, Hamedan)", M.A Thesis, Islamic Azad University.
Hang, Y., Sarfraz, M., Khalid, R., Ozturk, I., & Tariq, J. (2022). Does corporate social responsibility and green product innovation boost organizational performance? a moderated mediation model of competitive advantage and green trust. Economic research-Ekonomska istraživanja, 35(1), 5379-5399.
Ismail Zadeh, Ali & Amiri, Hamideh. (2018). The effect of financial resources on the growth of small and medium enterprises. Financial Economics, 12(44), 143-160.
Jafari, S. M., & Poor Zanjani, P. (2022). Factors Affecting the Interest of Individuals to Participate and Invest in Social Crowdfunding Projects. Journal of Asset Management and Financing, 10(3), 95-118. doi: 10.22108/amf.2022.132608.1722
Karimi, A., & Bozarjomehri, S. (2013). Analyzing the Financing Barriers to Small and Medium Enterprises. Journal of Entrepreneurship Development, 6(1), 125-144. doi: 10.22059/jed.2013.36253
Kaya, O., & Masetti, O. (2019). Small‐and medium‐sized enterprise financing and securitization: Firm‐level evidence from the Euro area. Economic inquiry, 57(1), 391-409.
Khosroanjom, D., Rajab Zadeh Qatari, A., Azar, A., & Moghbel, A. (2021). Integrating Fuzzy Analytic Hierarchy Process and Fuzzy DEMATEL to Investigate Service Capabilities in Iranian Small Enterprises: A Resource-Based Perspective. The Journal of Productivity Management, 15(1(56) Spring), 23-53. doi: 10.30495/qjopm.2020.1875024.2572
Kiarsi Heydar, P., Radfar, R., Alborzi, M., & Toloi, A. (2019). Simulation of Enhanced Oil Recovery Technology RoadMapping with System Dynamics Method. Strategic Management Researches, 24(71), 89-117.
Laleh, S., Shadnoush, N., & Toloie Ashlaghi, A. (2019). Designing of a model for measurement of technological capabilities in cost valuation of research and development processes for knowledge-based companies applying for admission to the Stock Market. Financial Engineering and Portfolio Management, 10(40), 201-220.
Mahmoudi, V., Babaei, A., & Abbasian, E. (2023). Ranking of financing alternatives for small and medium enterprises according to credit risks. The Journal of Economic Policy, 14(28), 217-246. doi: 10.22034/epj.2023.19287.2372
Mansouri, S. A., Farazmand, H., & Afghah, M. (2021). Investigation of economic resilience in small and medium industries of Khuzestan province due to SARS-CoV-2 (Corona) Epidemic. Stable Economy Journal, 2(3), 1-30. doi: 10.22111/sedj.2021.40408.1153
Mosleh Shirazi, A., Maleki, B., Khalifeh, M., & Ramezani Moghadam, A. (2018). Modeling Performance of Financial System Using System Dynamics Approach: A Case Study on a Sand and Gravel Firm. Journal of Asset Management and Financing, 6(1), 51-72. doi: 10.22108/amf.2017.21331
Mostafazadeh, Armin. (2015). the model of financing small and medium enterprises - an analysis of the concept and importance of financing small and medium enterprises, Islamic Council Research Center.
Motamani, Alireza and Tabgian, Nima. (2015). Identifying and prioritizing financing methods for small and medium businesses according to the life cycle of the company. Financial Management Perspective, 5(11), 79-90.
Noori, R., Fathi, S., & Yeganeh, L. (2016). Identification of the Causes of Timely Availability of Working Capital Problem for Small and Medium Size Enterprises in Iran. Journal of Asset Management and Financing, 4(3), 1-16. doi: 10.22108/amf.2016.20644
Nosrati Barandagh, B., Toloie, A., Sadeh, E., & Aminisabegh, Z. (2020). Provide a dynamic model of financing small and medium enterprises (SMEs) with DANP approach. Financial Engineering and Portfolio Management, 11(44), 154-187.
Oghosanine, E. E. (2022). SME Financing: Understanding the Barriers and Potentials for Entrepreneurs–Developing and Under-Developed World Perspectives. In Microfinance and Sustainable Development in Africa(pp. 207-233). IGI Global.
Olfat, L., & Shahryari Nia, A. (2014). Interpretive Structural Modeling of Effective Factors of Partner Selection in Agile Supply Chain. Research in Production and Operations Management, 5(2), 128-109.
Rao, P., Kumar, S., Chavan, M., & Lim, W. M. (2023). A systematic literature review on SME financing: Trends and future directions. Journal of Small Business Management, 61(3), 1247-1277.
Sadeghfalah, R., & Rezaie Dolatabadi, H. (2014). Analysis of big Shareholders' Perspective on Block Divestiture of Shares in Business Financing Through Matching Method (Tehran Stock Exchange as A Case Study). Journal of Asset Management and Financing, 2(2), 39-64.
Sadriniya, Mohammad; Mirasadi, Samaneh and Verwani, Mohsen.(2009). Different methods of financing small and medium enterprises at different stages of their life cycle. Rushd Technology Quarterly, 5(19).
Safi Dastjerdi, D., Tayebi, K., & Elahi, N. (2021). Loan Interest Rate Uncertainty and Financing SMEs Listed in Tehran Stock Exchange. Journal of Asset Management and Financing, 9(2), 1-20. doi: 10.22108/amf.2020.124509.1578
Seifollahi, N., & EbrahimiKharajo, V. (2022). Investigating social banking in the world for small industries and providing a solution on how to generalize it in Ardabil. Financial Economics, 16(59), 75-104. doi: 10.30495/fed.2022.694714
Setayesh, H., Memaranjad, A., Hejbarkiani, K., & Torabi, T. (2022). Studying the Impact of Small and Medium-Sized Manufacturing Industries on the Growth of Industrial Value Added in Iran’s Economy. Financial Economics, 16(59), 221-252. doi: 10.30495/fed.2022.694720
Titiyal, R., Bhattacharya, S., & Thakkar, J. J. (2019). The distribution strategy selection for an e-tailer using a hybrid DANP VIKOR MCDM model. Benchmarking: An International Journal, 26(2), 395-433.
Toloie Ashlaghi, Abbas & Biglari, Elnaz. (2010). Presented a dynamic Model to simulate the Balanced Score Card with the goal of efficient Strategies (Case study: Mahan air). Management Accounting, 3(6), 89-103.
Yazdani, M., & Pirpour, H. (2017). Evaluating Effects of Exchange Rate Uncertainty on Financing of Firms and Foreign Direct Investment in Iran. Economics Research, 17(67), 35-65. doi: 10.22054/joer.2018.8563
Yoshino, N., & Taghizadeh-Hesary, F. (2018). The role of SMEs in Asia and their difficulties in accessing finance(No. 911). ADBI Working Paper Series.
Zolfaghari, R., Tashakori, N., & Eram, A. (2022). Designing Collaterals Assessment Model to Finance Technological Projects and SMEs by Adaptive Neural Fuzzy Inference System (ANFIS). Financial Research Journal, 24(3), 453-479. doi: 10.22059/frj.2022.313263.1007094