This study aims to analyse the impact of credit risk and interest rates on the growth of small and medium enterprises (SMEs) in Dili, Timor-Leste. This study used quantitative questionnaire-based method with a sample of 171 SMEs in Dili, Timor-Leste. Data analysis was conducted using multiple regressions with hypothesis test using t and f values. The results show a positive and significant relationship for credit risk and interest rate on SMEs growth in Dili, Timor-Leste. The result shows that when banks and financial institutions implement credit risk effectively, company growth is increased. On the other hand, the interest rate did not have any impact on the growth of the Small and Medium Enterprises (SMC). This may be because small and medium enterprises (SMEs) do not pay attention to the Bank interest rate when they ask for credit.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.