Relationship between SME Financing and Livelihood Standard: Evidence from Bangladesh
Abstract
The study endeavours to evaluate the relationship between SME financing and the development of livelihood standards in Bangladesh using primary data sources. The data for the study was collected from the respondents by administering a semi-structured questionnaire at different Upazila under the Mymensingh district. The dichotomous variable was applied to determine the relationship where a score of ‘1’ was assigned if the item complied and ‘0’ otherwise. Frequency, percentile, likelihood-ratio chi-square, Fisher's exact test, and paired sample test were used to get the result. The likelihood-ratio value specifies a significant relationship between the development of livelihood standards with the length of business at 5 per cent and SME finance at a 6.4 per cent significance level. Sex, education level, training on SME of the respondents, ownership type, the share of the loan, and business nature has an insignificant relationship with the development of livelihood standard. Paired samples test indicates a positive relationship between LDS and the development of livelihood standards.
References
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Uddin, M.T. (2014). A study on financing of SME’s in Bangladesh. Journal of Economics and Sustainable Development, 5(11), 161-167.
Venkatesh, S. & Muthiah, K. (2012). SMEs in India: importance and contribution. Asian Journal of Management Research, 2(2), 792-796.
Zada, M., Shah, S.J., Yukun, C., Rauf, T., Khan, N., & Shah, S.A.A. (2019). Impact of small-to-medium size forest enterprises on rural livelihood: evidence from Khyber-Pakhtunkhwa, Pakistan. Sustainability, 11(2989), 1-17. doi:10.3390/su11102989
Abdulsaleh, A.M. & Worthington, A.C. (2013). Small and medium-sized enterprises financing: a review of literature. International Journal of Business and Management, 8(14), 36-54. doi:10.5539/ijbm.v8n14p36
Afsana, J., Parvin, A., & Sumon, M.N.S. (2015). SME financing in Bangladesh: a comparison between BASIC bank limited and BRAC bank limited. ASA University Review, 9(2), 71-84.
Alauddin, M. & Chowdhury, M.M. (2015). Small and medium enterprise in Bangladesh- prospects and challenges. Global Journal of Management and Business Research, 15 (7) 1, 1-10.
Alauddin, M., Rahman, M.Z., & Rahman, M. (2015). Investigating the performance of SME sector in Bangladesh: an evaluative study. International Journal of Small Business and Entrepreneurship Research, 3(6), 14-28.
Al-Haddad, L., Sial, M.S., Ali, I., Alam, R., Khuong, N.V., & Khanh, T.H.T. (2019). The role of Small and Medium Enterprises (SMEs) in employment generation and economic growth: a study of marble industry in emerging economy. International Journal of Financial Research, 10(6), 174-187. doi:10.5430/ijfr.v10n6p174
Ali, M.R., Ahmed, R.A., & Islam, M.A.(2019). Cost of external financing of SMEs: a study of a developing country. International Journal of Financial Engineering, 6(3), doi.org/10.1142/S2424786319500294
Asikhia, O.U. (2010). SMEs and poverty alleviation in Nigeria: marketing resources and capabilities implications. New England Journal of Entrepreneurship, 13(2), 57-70. DOI: https://doi.org/10.1108/NEJE-13-02-2010-B005
Bhuiyan, A.B. & Bakar, R. (2014). Entrepreneurship development and poverty alleviation: an empirical review. Journal of Asian Scientific Research, 4(10), 558-573.
Bosri, R. (2016). SME financing practices in Bangladesh: scenario and challenges evaluation. World Journal of Social Sciences, 6(2), 39-50.
Bowale, K.E. & Ilesanmi, A.O. (2014). Determinants of factors influencing capacity of Small and Medium Enterprises (SMEs) in employment creation in Lagos State, Nigeria. International Journal of Financial Research, 5(2), 133-141. DOI:10.5430/ijfr.v5n2p133
Casagrande, A., Spallone, M., Mango, F.M., & Murè, P. (2018). SME development banks: conceptual framework and empirical analysis. International Journal of Financial Research, 9(2), 112-121. doi:10.5430/ijfr.v9n2p112
Chowdhury, M.S.A., Azam, M.K.G., & Islam, S. (2013). Problems and prospects of SME financing in Bangladesh. Asian Business Review, 2(2), 51-58. DOI: 10.18034/abr.v2i2.111
Eniola & Abiodun, A. (2014). The role of SME firm performance in Nigeria. Arabian Journal of Business and Management Review, 3(12), 33-47.
Gbandi, E.C. & Amissah, G. (2014). Financing options for small and medium enterprises (SMEs) in Nigeria. European Scientific Journal, 10(1), 327-340.
Islam, M.A., Khan, M.A., Obaidullah, A.Z.M., & Alam, M.S. (2011). Effect of entrepreneur and firm characteristics on the business success of small and medium enterprises (SMEs) in Bangladesh. International Journal of Business and Management, 6(3), 289-299.
Islam, M.A., Yousuf, S., & Rahman, M.I. (2014). SME financing in Bangladesh: a comparative analysis of conventional and Islamic banks. Journal of Islamic Banking and Finance, 2(1), 79-92.
Jaabi, S.A.K. (2018). SME finance and economic development paradox: the case of fish industry in the Gambia. Advances in Social Sciences Research Journal, 5(9), 61-77. doi.org/10.14738/assrj.59.4790.
Khandakar, M., Chowdhury, R.S., & Ahmed, S. (2016). A study of the impact of small and medium enterprise financing on the lifestyle of small and medium enterprise loan borrowers. Australian Journal of Accounting, Economics and Finance, 2(2), 82-90.
OCDE (2010). SME and entrepreneurship financing: policy responses to the global crisis and the way forward to recovery.
Panjaitan, J. MP., Darwin, M., Bastian, I., & Sukamdi, S. (2020). What do banks, rural credit institutions, and regulators infer from the current strengths and standing of Indonesian SMEs? Gadjah Mada International Journal of Business, 22(1), 1-23.
Qamruzzaman, M. (2015). Productivity and performance evaluation of SME sector in Bangladesh: evidence from the historical data. Journal of Islamic Finance and Business Research, 3(1), 14-22.
Rahman A., Rahman M.T., & Ključnikov A. (2016). Collateral and SME financing in Bangladesh: an analysis across bank size and bank ownership types. Journal of International Studies, 9(2), 112-126. DOI: 10.14254/2071-8330.2016/9-2/8
Saravanan, S. (2013). Small and medium enterprises financing at syndicate bank regional office, Bangalore. International Monthly Refereed Journal of Research in Management & Technology, 2, 123-129.
Sarkar, S.H., Islam, M.S., & Khalek, M.A. (2018). SME financing for entrepreneurship development: evidence from Bangladesh. IOSR Journal of Economics and Finance, 9(6)3, 14-30. DOI: 10.9790/5933-0906031430
Uddin, M.T. (2014). A study on financing of SME’s in Bangladesh. Journal of Economics and Sustainable Development, 5(11), 161-167.
Venkatesh, S. & Muthiah, K. (2012). SMEs in India: importance and contribution. Asian Journal of Management Research, 2(2), 792-796.
Zada, M., Shah, S.J., Yukun, C., Rauf, T., Khan, N., & Shah, S.A.A. (2019). Impact of small-to-medium size forest enterprises on rural livelihood: evidence from Khyber-Pakhtunkhwa, Pakistan. Sustainability, 11(2989), 1-17. doi:10.3390/su11102989
Published
2023-09-15
How to Cite
SARKAR, Shakhawat Hossain.
Relationship between SME Financing and Livelihood Standard: Evidence from Bangladesh.
Academic Journal of Business and Social Sciences, [S.l.], v. 7, n. 1, p. 1-16, sep. 2023.
ISSN 2590-440X.
Available at: <https://myjms.mohe.gov.my/index.php/AJoBSS/article/view/21794>. Date accessed: 09 dec. 2023.
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