Financing Resources of SMEs and Firm Performance: Evidence from Korea

Kim, Hung Sik; Cho, Kyung-Shick

doi:10.22452/ajba.vol13no2.1

Cited by 5 publications

(5 citation statements)

References 37 publications

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“…World Bank (2019) notices that funding was a key challenge faced by SMEs. Yet, Kim and Cho (2020)'s study shows that institutional funding is essential for company performance. Without funding, small and medium social businesses will have little chance of enhancing their impact scale.…”

Section: Lack Of External Fundingmentioning

confidence: 99%

Social Impact Enhancement: Developing Social Businesses through Impact Measurement, Performance Measurement, and Knowledge Management

Wang

2024

OJBM

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This paper aims to confirm that by implementing certain performance measurement criteria and impact measurement strategies, organisations can enlarge the social impact of their social projects by enhancing their project knowledge management. I first build a framework that links performance and impact measurement with knowledge management, and knowledge management with social impact. I then empirically test this framework's significance in raising social impact using ANOVA regression analysis on gathered data from 70 organisations around the world with social impact projects (social enterprises, non-profit organisations, and conventional businesses with social projects). The novel purpose and value of this study are to promote the use of social impact measurements to resolve social organisations' current difficulties in both finance and impact scale, killing two birds with one stone. The overall conclusion is that effective knowledge management has a positive influence on project social impact and that certain critical success factors, key performance indicators, and impact measurement strategies are significant in enhancing project social impact by improving knowledge management. This conclusion could help social businesses to upscale their social impact. Policies to support social impact projects and impact measurements are also addressed.

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Section: Lack Of External Fundingmentioning

confidence: 99%

Social Impact Enhancement: Developing Social Businesses through Impact Measurement, Performance Measurement, and Knowledge Management

Wang

2024

OJBM

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“…The choice of funding sources is undoubtedly an important decision, even for small enterprises, where obstacles encountered can pose development issues. Some studies even show a correlation between the choice of funding sources and the performance achieved [151]. The intention to use bank loans should be mentioned, as they are among the most well-known sources of financing, even though they can generate burdensome costs.…”

Section: Objective 3 (O3) Determining the Future Intentions Of The En...mentioning

confidence: 99%

Sustainable Entrepreneurship: Romanian Entrepreneurs’ Funding Sources in the Present-Day Context of Sustainability

Anton,

Zamfirache,

Albu

et al. 2024

Sustainability

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This paper aims to provide an in-depth analysis of the knowledge of and access to funding sources in the context of sustainability. Additionally, it seeks to analyse the perspectives and intentions of entrepreneurs regarding the use of such sources in the future. For this purpose, quantitative research was conducted, and data were collected from a sample of 267 respondents, companies operating in the Central Region of Romania. The evidence indicates that reinvestment of profits is the most commonly used funding source, followed by bank loans and leasing. The least-used and least-known funding source are Business Angels. Among the conclusions of the study, the demonstration of the link between the level of use of the funding sources, which moderates the close relationship between sustainability and the financial performance of a company, is noteworthy. Ultimately, this research opens new ways for collaboration between the academic environment, government, and local authorities. The results can be beneficial for stakeholders at both the micro- and macroeconomic levels interested in the sustainable development of the SME sector.

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“…Using data from SMEs operating in the Korean market, Kim and Cho [28] examined the effects of funding on company performance and efficiency. Their results revealed that company performance was positively shaped by internal and institutional funding.…”

Section: Literature Reviewmentioning

confidence: 99%

Sources of SMEs Financing and Their Impact on Economic Growth across the European Union: Insights from a Panel Data Study Spanning Sixteen Years

et al. 2022

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Getting access to sufficient funding is the keystone for the development of any business, but especially for small and medium enterprises (SMEs). These economic entities are crucial players in the global economy since they include almost 90% of companies, provide jobs for nearly 50% of the global workforce, and enhance long-term economic growth. In this context, our study explores important sources concerning the financing of small and medium enterprises and their impact on economic growth during the period 2005–2020 with data from SMEs covering the 28 countries belonging to the European Union. The set of predictors included Strength of legal rights index, Days sales outstanding, Bad debt loss, Interest rate, Bank support, Business angels, Private lenders, and Public support. The set of dependent variables included Cost of loans, Equity fund, GDP growth rate, and Value added growth rate. Our methodological approach was complex, it considered a panel data analysis with a first-difference generalized method of moments estimator and a multiplex time series analysis. The novelty of the study resides in combining the two methods in order to investigate significant drivers of economic growth across the EU. Empirical results showed that economic growth was mainly triggered by predictors such as Interest rate, Business angels, Bank support, and Public support. Moreover, the valuable mathematical insights elicited by the multiplex time series analysis suggested that European economies cooperated intensively through SME activities. Based on our empirical results, national and regional authorities should enact adequate policies to support business endeavors of small and medium enterprises.

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Financing Resources of SMEs and Firm Performance: Evidence from Korea

Cited by 5 publications

References 37 publications

Social Impact Enhancement: Developing Social Businesses through Impact Measurement, Performance Measurement, and Knowledge Management

Social Impact Enhancement: Developing Social Businesses through Impact Measurement, Performance Measurement, and Knowledge Management

Sustainable Entrepreneurship: Romanian Entrepreneurs’ Funding Sources in the Present-Day Context of Sustainability

Sources of SMEs Financing and Their Impact on Economic Growth across the European Union: Insights from a Panel Data Study Spanning Sixteen Years

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