Analyzing the Variables That Influence Access to Bank Financing for Small and Medium Enterprises in Kosovo and North Macedonia (original) (raw)

Abstract

This study aims to analyze variables that influence access to bank loans by SMEs in Kosovo and North Macedonia. Research methodology is compound by primary and secondary data. We hypothesized that the age of the SMEs, business size, written business plan, collateral type, and business experience before starting as an owner, owner education, and owner gender influence access to bank loans for SMEs. Econometric model results revealed that age of the SMEs, business size, and written business plan has a significant influence on bank loans borrowed by SMEs, while, collateral type, business experience before starting as an owner, owner level of education, and owner gender have no significant influence on bank loans borrowed by SMEs in the Republic of Kosovo. Furthermore, from the results obtained we revealed that age of the SMEs, business size, written business plan, and owners" level of education has a significant influence on bank loan borrowed by SMEs, whereas, collateral type, business experience before starting as owner and owners gender have no significant influence on bank loans borrowed by SMEs in the Republic of North Macedonia. The findings suggest some future lines of research at the end and provide recommendations for the main stakeholders of this field of study.

Figures (4)

Figure 1: Conceptual Framework of Research (Source: Authors’ depiction) The conceptual framework of this study centered on the influence of business and owners’ characteristics on SMEs’ accessibility to bank loans in Kosovo and North Macedonia. The variables from this conceptual framework hypothetically were tested to establish whether there were any significant relationships between independent variables and dependent variables. The independent variables of this study are the age of the SMEs, business size, written business plan, collateral type, business experience before starting as owners, owners’ level of education, and owners’ gender, while, the dependent variable is bank loan borrowed by SMEs.

Figure 1: Conceptual Framework of Research (Source: Authors’ depiction) The conceptual framework of this study centered on the influence of business and owners’ characteristics on SMEs’ accessibility to bank loans in Kosovo and North Macedonia. The variables from this conceptual framework hypothetically were tested to establish whether there were any significant relationships between independent variables and dependent variables. The independent variables of this study are the age of the SMEs, business size, written business plan, collateral type, business experience before starting as owners, owners’ level of education, and owners’ gender, while, the dependent variable is bank loan borrowed by SMEs.

Table 1: Number of the research population (Source: Kosovo Statistics Agency; State Statistical Agency of North Macedonia)

Table 1: Number of the research population (Source: Kosovo Statistics Agency; State Statistical Agency of North Macedonia)

a. Dependent Variable: Bank Loan, b. Predictors: (Constant), Owner's gender, Size of the company, Written business plan, Age of the SMEs (The year of establishment), Collateral type, Owner's level of education, Business experience before starting as an owner. Table 3: ANOVA (Source: Authors’ depiction)

a. Dependent Variable: Bank Loan, b. Predictors: (Constant), Owner's gender, Size of the company, Written business plan, Age of the SMEs (The year of establishment), Collateral type, Owner's level of education, Business experience before starting as an owner. Table 3: ANOVA (Source: Authors’ depiction)

a. Dependent Variable: Bank Loan. Note. (***), (**), (*) significant, respectively, at 1, 5, and 10 percent.

a. Dependent Variable: Bank Loan. Note. (***), (**), (*) significant, respectively, at 1, 5, and 10 percent.

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