Prethodno priopćenje
DEMAND SIDE CONSTRAINTS TO SME ACCESS TO EXTERNAL FINANCE: EVIDENCE FROM SURVEY OF MANUFACTURING FIRMS IN ETHIOPIA
Ashenafi Beyene Fanta
orcid.org/0000-0001-9154-3518
; Department of Finance, risk management and Banking, University of South Africa, Pretoria, Južnoafrička Republika
Sažetak
Small and medium enterprises (SMEs) are financially constrained due to demand side and supply side factors. Most studies emphasize on the supply side constraints, paying less attention to the demand side constraints that arise from SME inherent characteristics. This paper aims at describing characteristics of SMEs and identifying attributes that hinder their access to external finance. To this end, survey of 102 randomly selected firms from the Ethiopian manufacturing sector was conducted. We find that most SMEs are characterized by having a few or no collateralizeable fixed assets. Examination of owner’s willingness to admit a new partner as a means of expanding capital base revealed that most SME owners exhibit aversion towards selling ownership control. This shows that, contrary to conventional view, aversion towards relinquishing ownership interest increases with size. In terms of financial transparency, we found that most small firms are not accustomed to keeping books of accounts. In general, we found that firm characteristics and owner perceptions are partly responsible for SMEs limited access to external finance.
Ključne riječi
SMEs; Ethiopia; Bank credit; manufacturing
Hrčak ID:
143476
URI
Datum izdavanja:
30.6.2015.
Posjeta: 1.322 *