Constraints to SMEs: A Rotated Factor Analysis Approach
AbstractThere is little doubt that SMEs plays a vital role in development of an underdeveloped economy, but still this sector is facing multifarious problems relating to raw materials, power, land, marketing, transport, technical facilities, and finance etc and due to these constraints it is getting more difficult for them to contribute to nation’s GDP as expected. This paper attempts to find out the major constraints faced by the SMEs in Bangladesh selected from five sub-sectors using varimax normalization method based on primary questionnaire survey and rank the factor constraints according to their level of severity. It identified seven major factors comprised of 12 variables working as impediments to SME growth and development, amongst which high lending rate, government regulatory constraint, small domestic market size, collateral requirement for financing and lack of technically skilled workers are on the top.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 26135.
Date of creation: 2008
Date of revision:
Publication status: Published in South Asian Studies 24.2(2009): pp. 334-350
SME; Economic Growth; Constraint; Factors; Rotation; Varimax;
Find related papers by JEL classification:
- L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
- M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
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