IDEAS home Printed from https://ideas.repec.org/a/ids/ijecbr/v13y2017i1p30-42.html
   My bibliography  Save this article

Factors affecting SMEs' access to bank finance: an evidence from Sri Lanka

Author

Listed:
  • Asankha Pallegedara

Abstract

Small and medium scale enterprises (SMEs) make a large part of Sri Lanka's economy, accounting for about 80% of all businesses. The main purpose of this study is to examine the factors influencing the SMEs' access to bank finance provided by commercial banks and other financial institutions in Sri Lanka. This study utilises data collected from randomly selected 149 SMEs in Colombo and Matara districts of Sri Lanka. The analysis of data was conducted using quantitative techniques such as descriptive statistics and econometric estimations. The quantitative analyses were further supplemented by qualitative findings to explore the perceptions of the SME owners. The findings reveal that firms with higher monthly income are less likely to obtain bank loans. However, entrepreneur characteristics such as gender, age, religion and education level seem to have no influence on receiving bank finance by the SMEs. Findings of this work have broader policy recommendations for both banking service providers and policy makers.

Suggested Citation

  • Asankha Pallegedara, 2017. "Factors affecting SMEs' access to bank finance: an evidence from Sri Lanka," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 13(1), pages 30-42.
  • Handle: RePEc:ids:ijecbr:v:13:y:2017:i:1:p:30-42
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=81778
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijecbr:v:13:y:2017:i:1:p:30-42. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carmel O'Grady) The email address of this maintainer does not seem to be valid anymore. Please ask Carmel O'Grady to update the entry or send us the correct email address. General contact details of provider: http://www.inderscience.com/browse/index.php?journalID==310 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.