Determinants predicting credit accessibility of SME: Evidence from Bangladesh

Abstract

Small and medium enterprises (SMEs) play a vibrant role in socio economic development of a country by sustaining economic growth, employment creation and poverty reduction. But accessibility to bank credit is a key challenge faced by the SME firms. The main objective of the study is to examine the determinants of SME financing in Bangladesh. By analysis of 350 SME survey data and 50 credit officer, internal capital, collateral, financial statement and profitability are the determinants of SME financing. The data used in the study was at a single point in time. Due to the absence of central database, the work of data collection was very difficult.