Financing MSMEs Rife with Problems—A Demand Side Analysis

Sahoo, Chinmayee; Behera, Alok Ranjan

doi:10.1007/978-3-319-99555-7_11

Cited by 2 publications

(5 citation statements)

References 3 publications

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“…Furthermore, financial challenges have a significant negative impact on MSME Performance. This finding aligns with the research conducted by (Sahoo & Behera, 2018). Additionally, the study conducted by (Bravo-Ortega et al, 2023) also supports these findings, indicating that the limited knowledge and skills of MSME owners regarding finance hinder the performance of MSMEs.…”

Section: Discussionsupporting

confidence: 89%

“…Indicators / Items Major References Finansial Challenges (X1) Government regulations (FC1) (Susan, 2023) (Kusumasari & Retnandari, 2021). (Sahoo & Behera, 2018), (Bhalla et al, 2024) Personal funds/savings (FR1) (Singh, 2018), (Soetjipto & Restuningdiah, 2022), (Ferrata, 2019), (Kusuma et al, 2023), (Soetjipto, Utaberta, et al, 2023), (Resmi et al, 2022a), (Wu, 2024).…”

Section: Variablesmentioning

confidence: 99%

“…Financial challenges encompass the ability to engage in financial planning and make informed decisions in managing one's wealth, debts, and assets (Sahoo & Behera, 2018). Financial challenges represent the proficiency in financial management to ensure greater prosperity in the future.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Unlocking Economic Landscape: Understanding the Dynamics of Financial Challenges, Business Traits, Financial Resources, Growth Phases, Financial Accessibility, and MSME Performance

Masnila,

Febriantoko,

Mayasari

et al. 2024

ATESTASI

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Ease of access to finance serves as a driving force for the development of entrepreneurship. Entrepreneurship, in turn, has the capability to stimulate the creation of new employment opportunities. Sound financial access is crucial for supporting the sustainability and growth of the Micro, Small, and Medium Enterprises (MSMEs) sector. The objective of this research is to delve deeper into the challenges faced by MSMEs in accessing finance and analyze its influence on the business performance of MSMEs. The survey for this research was conducted on 324 MSMEs in the South Sumatra Province. The sample selected used the quota sampling technique. The research framework was developed and tested using a Structural Equation Model (SEM). The research findings indicate that business traits, financial resources, and growth phases of MSMEs have a significantly positive impact on financial access, while financial challenges have a negative impact that hinders the growth of MSMEs and affects overall MSME Performance.

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Section: Discussionsupporting

confidence: 89%

Section: Variablesmentioning

confidence: 99%

See 1 more Smart Citation

Unlocking Economic Landscape: Understanding the Dynamics of Financial Challenges, Business Traits, Financial Resources, Growth Phases, Financial Accessibility, and MSME Performance

Masnila,

Febriantoko,

Mayasari

et al. 2024

ATESTASI

View full text Add to dashboard Cite

show abstract

“…This is a contradiction to the findings of More and Basu (2013), because their study found lack of common vision among supply chain partners as the most important SCF adoption challenge which is a human resource-related challenge. This could be possibly due to the critical financial challenges faced by MSMEs around the world as evident from the literature (Sahoo and Behera, 2018). Maiti (2018) also stated that there exists a gap between demand and access to the MSME finance in India.…”

Section: Barrier Categorymentioning

confidence: 99%

“…(Berger Allen and Udell, 2006;Wuttke et al, 2013), which the current study takes into account. Moreover studies on SCF seldom considered the challenges faced by MSMEs in SCF adoption (Sahoo and Behera, 2018;Song et al, 2018. The study by More and Basu (2013) is only based on 80 responses, which could pose a serious problem in generalizing the findings.…”

Section: Introductionmentioning

confidence: 99%

Barrier analysis of supply chain finance adoption in manufacturing companies

Alora

Barua

2019

BIJ

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Purpose Companies all over the world have recently started to adopt supply chain finance (SCF) solutions in their supply chains to reduce the payment defaults and simplify the bill settlement process. The purpose of this paper is to identify and prioritize the barriers to adopting SCF in micro, small and medium enterprises. Design/methodology/approach It employs a three-phase methodology to identify and prioritize the essential barriers to the implementation of SCF. An extensive survey has been carried out in 101 Indian MSMEs in India which identified 37 barriers under six heads in the first phase. Experts’ interview using the Delphi technique has been carried out in the second phase to finalize the barriers. The analytic hierarchy process methodology, with sensitivity analysis for validation, is used in the final stage to prioritize and rank the barriers. Findings Results show that financial and information technology barriers are prominent in SCF adoption followed by financial challenges. Among specific barriers, the disclosure of sensitive company information to competitor barrier acts as an essential barrier followed by poor technological capability of MSMEs. Research limitations/implications The study is limited to SCF adoption of MSMEs in a developing nation. Extensive research is required in order to derive a global trend. Practical implications The current research contributes to the stakeholder theory and transaction cost economics. Observations made in the current research can encourage organizations to incorporate stakeholders’ concerns into the adoption of SCF solutions. The study provides a more in-depth view of such challenges and a benchmark, which will help companies to adopt SCF solutions more effortlessly. Moreover, policy makers across the world can explore these serious issues and amend or introduce new policies to facilitate companies’ implementation of supply chain financial solutions. Originality/value To the best of the authors’ knowledge, this is the first study which identified and prioritized SCF adoption barriers of MSMEs in a developing nation. This study is also novel in adopting a hybrid analytical hierarchy process-sensitivity analysis for ranking the SCF barriers in an MSME context. SCF studies often emphasize only on the reverse factoring aspect of SCF. The current study considers many innovative aspects of SCF, such as pre-shipment financing, dynamic discounting, inventory financing, collaborative logistics, etc.

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Financing MSMEs Rife with Problems—A Demand Side Analysis

Cited by 2 publications

References 3 publications

Unlocking Economic Landscape: Understanding the Dynamics of Financial Challenges, Business Traits, Financial Resources, Growth Phases, Financial Accessibility, and MSME Performance

Unlocking Economic Landscape: Understanding the Dynamics of Financial Challenges, Business Traits, Financial Resources, Growth Phases, Financial Accessibility, and MSME Performance

Barrier analysis of supply chain finance adoption in manufacturing companies

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