so sanh mo hinh doanh nghiep vua va nho

                  Lincoln University Digital Thesis      Copyright Statement  The digital copy of this thesis is protected by the Copyright Act 1994 (New Zealand).  This thesis may be consulted by you, provided you comply with the provisions of the Act  and the following conditions of use:       you will use the copy only for the purposes of research or private study   you will recognise the author's right to be identified as the author of the thesis and  due acknowledgement will be made to the author where appropriate   you will obtain the author's permission before publishing any material from the  thesis.   Credit Accessibility and Small and Medium Sized Enterprise Growth in Vietnam A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Commerce and Management at LincolnUniversity by Nhung Nguyen LincolnUniversity 2014 Abstract of a thesis submitted in partial fulfilment of the requirements for the Degree of Master of Commerce and Management Abstract Credit Accessibility and Small and Medium Sized Enterprise Growth in Vietnam by Nhung Nguyen Small and medium sized enterprises (SMEs) have been highly conducive to economic development in Vietnam SMEs are a mean of income generation, job creation, poverty reduction, and government revenue contribution, etc However, SMEs have lagged far behind other business sectors in terms of performance It is claimed that one of the major reasons is their inability to access credit The study investigates SMEs accessibility to various sources of financing, covering both formal finance and informal finance in Vietnam While majority of the literature on Vietnamese SMEs credit accessibility focus mainly on bank finance, there is growing necessity to address determinants of SMEs’ ability to obtain microfinance and informal credits as it has shown that obtaining bank financing is not popular for small scale enterprises Furthermore, the central issue is whether or not accessibility to external finance truly benefits small scale enterprises? The study also answers this question by examining the relationship between credit accessibility and SMEs’ growth.Primary data was obtained from a survey of 487 SMEs in Hanoi in June 2013 The empirical frameworks comprise of (1) Multinomial Logistic Regression to determine SMEs’ ability to access to credit for business start-up and operation; (2) Ordinary Least Square (OLS) estimation for the interest rate charged on SMEs largest loan; and (3) OLS and Heckman Two Stage Procedure model to determine the impact of SMEs credit accessibility on growth The model about credit accessibility at start-up period indicated that the SMEs network with lenders (except social bank officials) plays a significant role in determining the access to different sources of credit for SMEs start-up financing Furthermore, SMEs are more likely to borrow from informal sources if their owners are younger, less educated and experienced The model also found evidence that size of firm significantly affect SMEs credit access In terms of credit accessibility for business operation, the results pointed out that owner’s characteristics are less important in obtaining loans in 2012 SMEs tend to use more external financing as they grow older and formal financing is more available for larger sized firms In addition, firms in manufacturing and construction borrowed more than any other sector whereas exporting ii enterprises have lower demand for external loans Finally, collateral and assistance from government proved to be the strongest determinants of external financing but the SMEs networks to access external credit for business operation in 2012 were less important than at the start-up period Finally, the growth determinants model of SMEs suggested that the access to credit does not influence SMEs growth Thus, the empirical evidence rejects the claim that the inability to access to credit adversely affects SMEs growth The result implied that credit should not be considered as the miracle of growth but priority should be given to developing customer relationship and owner’s proactivity Efforts to push up SMEs growth should start from the enterprise’s internal resources, including owner’s human capital, export, and customer relationship development rather than external financing Keywords: Small and medium sized enterprises, SMEs, Credit Accessibility, Microfinance, Finance and Growth, Formal finance, Informal finance, SMEs growth, Vietnam iii Acknowledgements The completion of my thesis has been possible thanks to the supports of a number of people, to whom I am greatly indebted My first and foremost thanks goes to my supervisor, Professor Christopher Gan He has been an excellent academic advisor who has always provided detailed, critical, yet very timely comments and suggestions His dedicated work ethic has been a shining example for any student to follow I see myself pursuing a career in teaching and doing research through his coaching and guidance Beyond the academic support, till the rest of my life will I remember his unconditional care and help, like a kind Dad; his listening to student’s problems, like a close friend; and his real-life advices, like an expert All of these mean a lot to a student who live very far away from home like me, making New Zealand and Lincoln University my second home I am also thankful to my associate supervisor, Dr Baiding Hu for his advice on econometrics issues of my thesis Dr Hu is friendly and easy to approach for study help My deepest gratitude also goes to my Dad for his endless efforts to bring the best to my family, for teaching me to become an independent person, for being my best life-teacher and encouraging me in all aspects of life Thank you Mom, whose distance care I can always seek for in any moment of depression or frustration I am also grateful to my brother for replacing my position at home and supporting me enthusiastically like my best friend I believe that my grandparents and little cousin who have passed away would be very happy if they know I have reached the next step of my life as what I once promised In addition, I am thankful to have life-long friends such as Dang Phuong, Ha Trang, Nguyet Minh, Quynh Phuong, Tuan Anh and Ngoc Quyen who have always offered continuous supports and care even when we are far away from each other I appreciate the kind supports, both academically and mentally, from a number of lecturers and staff at the Faculty of Commerce, who are always very supportive and willing to help, in particular, Eileen, Anne, Gillis Maclean, Tracy-Anne, Sharon Forbe, Cuong Nguyen, Nazmun Ratna, Nicos Tescos and numerous others In addition, the time working at the Old Printery Suite was unforgettable as I became friends with a number of students and we shared each other ideas, happiness, disappointment, etc every day I would like to say thanks specifically to Chau, Khoi, Linda, Sam, Cheema, Sabil, Mariana, Ava, Nancy, Azi, Mazlina, Chao, Ditha, Chub, and Revindo They all created a family atmosphere that made my study an enjoyable journey I also received distant assistance from my former boss (Dr Phung Duc Tung) and colleagues at Indochina Research and Consulting (IRC) and Mekong Development Research Institute (MDRI) as well as my former Foreign Trade University lecturers (Associate Professor Nguyen Hoang Anh and Do iv Ngoc Kien).For years, they have been very kind to me and always make time whenever I am in need of their supports I cannot finish the acknowledgement without mentioning the survey team (An, Anh, Chi, Duc, Ha, Huyen, Kien, Thai, Tien, Thu) who helped me collect the enterprise data in Vietnam I understand how hard it was for them to get more than 500 questionnaires done under a very tight schedule Your hard work is much appreciated My thanks is also extended to SMEs owners and managers who participated in my survey Without their participation, my research questions would have never been answered Last but not least, my master study was only possible with the financial assistance from the New Zealand Government Development Scholarship and the research funding from the Faculty of Commerce, Lincoln University I am indebted to the New Zealand government and the warmest hospitality of Lincoln University, especially the Faculty of Commerce from the first till the last day – the kindness of the country and the university that remains in my heart wherever I go v Table of Contents Abstract ii Acknowledgements iv Table of Contents vi List of Tables viii List of Figures ix Abbreviation x Chapter Introduction 1.1 Rationale of the Study 1.2 Problem Statement 1.3 Purpose of the Study 1.4 Research Questions 1.5 Significance of the Study 1.6 Contribution of the Study 1.7 Brief Description of the Method Used 1.8 Structure of the Thesis Chapter Literature Review 2.1 Definition of Small and Medium Sized Enterprise 2.1.1 Global Definition of SMEs 2.1.2 Definition of SMEs in Vietnam 2.2 Small and Medium Sized Enterprises in Southeast Asia 2.3 Small and Medium Sized Enterprises in Vietnam 2.3.1 Characteristics of SMEs in Vietnam 2.3.2 SMEs Performance and Contribution to Vietnam’s Economy 10 2.3.3 Constraints Facing SMEs in Vietnam 11 2.4 Determinants of Credit Accessibility 13 2.4.1 Owner/Manager Characteristics 13 2.4.2 SMEs Characteristics 14 2.4.3 Creditworthiness 17 2.4.4 Networks 18 2.5 Credit Accessibility and Firm Growth 19 2.6 Summary 20 Chapter Data and Methodology 21 3.1 Theoretical and Empirical Framework 21 3.1.1 Model for Determinants of Credit Accessibility of SMEs in Vietnam 21 3.1.2 Model for Credit Accessibility and SMEs’ Growth 24 3.2 Data Collection Procedure 26 3.2.1 Sampling Design 26 3.2.2 Survey Instruments 27 3.2.3 Data Collection Process 28 3.3 Description of the SMEs Survey Data 28 3.3.1 An Overview of the SMEs Financing Sources 28 vi 3.4 3.3.2 Characteristics of the Respondents 30 3.3.3 Characteristics of the SMEs 33 3.3.4 Characteristics of the SMEs Loan in 2012 37 3.3.5 SMEs Perception on Credit Accessibility 38 Summary 39 Chapter Results of the Empirical Models 40 4.1 Determinants of SMEs Credit Accessibility 40 4.1.1 Credit Accessibility for Business Start-up 40 4.1.2 Credit Accessibility for SMEs Business Operation 42 4.1.3 Diagnostic Test of the Models 46 4.2 Determinants of SMEs Loan Interest Rate 47 4.3 Impact of Credit Accessibility on SMES Growth 49 4.4 Summary 52 Chapter Policy Implications and Conclusions 54 5.1 Summary 54 5.2 Main Findings 55 5.3 Implications and Policy Recommendations 56 5.4 Limitations of the Study and Suggestions for Future Research 57 Appendix A Statistics on Small and Medium Sized Enterprises in Vietnam 59 Appendix B Survey Questionnaire 62 Appendix C Variable Description and Correlation 70 C.1 Description of the Variables 70 C.2 Pairwise Correlation of the Independent Variables 72 References 74 vii List of Tables Table 2-1 Table 2-2 Table 2-3 Table 3-1 Table 3-2 Table 3-3 Table 3-4 Table 3-5 Table 3-6 Table 4-1 Table 4-2 Table 4-3 Table 4-4 Table 4-5 Table 4-6 Definition of SMEs in Selected Countries Definition of SMEs in Vietnam Contribution by Small and Medium-Sized Enterprises in Southeast Asia (Various Years: 2008-2011) Financing Sources of the Sample SMEs for Business Start-up and Operation 28 Distribution of SMEs Credit Accessibility in 2012 30 Profile of the Survey SMEs Owners (Individual and Household Characteristics) 32 Profile of SMEs in the Survey 36 Mean Statistics of the Largest Loan Characteristics 37 SMEs Perception on Credit Accessibility 38 Multinomial Logistic Model of Financing Choices for Business Start-up 42 Multinomial Logistic Model of Financing Choices for Business Operation 46 Result of the Hausman Test for Independent of Irrelevant Alternatives Assumption 47 Determinants of Interest Rate Charged on SMEs Loan 49 Impact of Credit Access on SMEs Growth – Ordinary Least Square Estimation Model 50 Impact of Credit Access on SMEs Growth – A Heckman Two Stage Procedure Model 52 Table A Table A Performance Indicators of SMEs in Vietnam 60 Contribution to State Budget of SMEs and Business Sector 61 viii List of Figures Figure A Figure A Figure A Figure A Figure A Number of Enterprises in Vietnam by Size at 31 December: 2000 – 2011 59 SMEs in Vietnam: By Sector and Ownership Types (2009) 59 SMEs in Vietnam: By Regions (2009) 60 Profitability Indicators of SMEs Compared to the Business Sector in Vietnam 61 Ease of Doing Business (2012) 61 ix d Personal belongings (such as car, gold, stocks, etc ?) [ ] e Others [ (specify………………………………………………………………………………………………………………….) 10 Please circle the number (from to 5) best describing the extent to which your business has utilized personal ties, networks, and connections at the start-up of your business, where indicates “very little” and indicates “very extensive.” NA means no answer Very little Average Very extensive NA a Commercial bank officials b Social bank officials c Government officials d Suppliers (eg Input suppliers, material suppliers, etc) e Customers f Friends, relatives g Social organizations or NGOs h Microfinance organizations i Business associations ] SECTION 2: FINANCE FOR YOUR BUSINESS OPERATION IN 2012 11 Please circle the number (from to 5) best describing the extent to which your business has utilized personal ties, networks, and connections in 2012 operation where indicates “very little” and indicates “very extensive.” NA means no answer Very little Average Very extensive a Commercial bank officials b Social bank officials c Government officials d Suppliers (eg Input suppliers, material suppliers, etc) e Customers f Friends, relatives g Social organizations or NGOs h Microfinance organizations i Business associations 12 Did you borrow any loan in 2012? a Yes [ ] b No [ ] (IF YES, PLEASE GO TO Q13 IF NO, PLEASE GO TO Q32) 13 If Yes, how many credit suppliers did you approached during 2012? a 1-3 [ ] b 4-6 [ ] c More than [ ] 14 What percentage of your loan applications was successful during 2012? a Above 80% [ ] b From 60% to below 80% [ ] c From 40% to below 60% [ ] d From 20% to below 40% [ ] e Less than 20% [ ] 15 What was the total amount of your loan(s) in 2012? (1000VND) 64 NA 0 0 0 0 16 What was the purpose of your loan(s)? (you can tick more than one) a Expanding business, manufacturing, trading, or service activities b Buying car [ [ ] ] c Urgent temporary capital shortage [ ] d Domestic factoring [ ] e Financing new investment project(s) [ ] f Paying debts [ ] g Others (please specify.……….……………………………………… ………………) [ ] 17 What percentage of your capital needs did the loan(s) cover provide? a Above 80% [ ] b From 60% to below 80% [ ] c From 40% to below 60% [ ] d From 20% to below 40% [ ] e Less than 20% [ ] 18 Which types of formal or/and informal finance(s) did you borrow from in 2012 (you can tick more than one)? Formal finance Informal finance a Commercial banks [ ] e Private money lender b Social policy banks [ ] f Friends/relatives c Development Assistant Fund [ ] g Trade credit (with business partners or customers) [ ] h Others (please d Microfinance institutions specify…………………………………………… ………………………………………………… …) 19 What was the highest interest rate you paid for the loan in 2012? .(per year) 20 What was the lowest interest rate (excluding free-interest loans) you paid for the loan in 2012? .(per year) 21 What was the interest rate charged on the largest loan (in terms of value) you borrowed in 2012? (per year) FOR THE LOAN IN QUESTION 21, PLEASE ANSWER QUESTION 22 TO QUESTION 31 22 Where did you obtain the loan? You can tick ONLY one Formal finance Informal finance a Commercial banks [ ] e Private money lender b Social policy banks [ ] f Friends/relatives c Development Assistant Fund [ ] d Microfinance institutions [ ] g Trade credit (with business partners or customers) h Others (please specify…………………………………………) 23 Was the loan collateralized? a Yes [ ] b No [ ] 24 The loan made up for what percentage of your total loan amount in 2012? _(%) 25 What was the duration of the loan? a Short term (1 year or below) [ b Medium term (More than year to years) [ ] ] 65 [ [ [ ] ] ] [ ] [ [ ] ] [ ] [ ] c Long term (more than years) [ 26 What is the mode of interest payment? a Daily ] [ ] b Weekly [ ] c Monthly [ ] [ [ [ ] ] ] [ ] b Insurance fee [ ] c Guarantee fee [ ] d Others, please specify [ ] d Quarterly e Semi-annual f Others, please specify 27 Is there any charge(s) on the loan? a Yes [ ] b No [ 28 If yes, what are these charges? You can tick more than one a Administrative or service fee ] 29 Did you have to make any informal payment (such as gifts or money for credit officials, etc) to get the loan? a Yes [ ] b No [ ] 30 Did you receive any assistance from government in obtaining the loan? a Yes [ ] b No [ ] 31 What is the current status of the loan? a Fully paid [ ] b Current outstanding [ ] c Over due [ ] d Rolled over [ ] e Others, please specify [ ] NOW, PLEASE GO TO SECTION 32 If No, why didn’t you borrow during 2012? (you can tick more than one) a Had enough capital b I applied, but all applications were rejected c Inadequate collateral d Thought application would be rejected e Complicated government regulations f Administrative difficulties to process the application g Interest rate was too high h Other (Specify………………………………………………………………) 33 Do you have intention to borrow in the future? a Yes [ ] b No [ 34 If Yes, where you intend to borrow from? (You can tick more than one) Formal finance a Commercial banks b Social policy banks [ [ ] ] Informal finance l Private money lender m Friends/relatives [ [ [ [ [ [ [ [ ] ] ] ] ] ] ] ] ] [ [ 66 ] ] c Development Assistant Fund d Microfinance institutions [ ] [ ] n Trade credit (with business partners or customers) o Others (please specify……………………………………) [ ] [ ] SECTION 3: CHARACTERISTICS OF YOUR BUSINESS 35 What type of ownership would you consider your business? a Household business establishment [ ] b Private (sole proprietorship) [ ] c Collective/Cooperative [ ] d Limited liability company [ ] e Joint stock company with state capital [ ] f Joint stock company without state capital [ ] g Joint venture with foreign capital [ ] h State enterprise (central) [ ] i State enterprise (local) [ ] 36 What was the total number of employees in 2012? _(persons) 37 Compared to 2011, what was the status of your business sale revenue in 2012? a Increase [ ] b Decrease [ ] c Stay the same [ ] 38 In 2012, your business sale revenue increased (%) or decreased (%) 39 What was your business post-tax profit in 2012? Profit (VND) or loss _ (VND 40 What was your main business activity in 2012 a Agriculture [ ] b Industry [ ] c Services [ ] d Trade [ ] e Others(Please specify……………………………………………………………………………) [ ] 41 My business has: Yes a An accounting book b A tax code c Direct export d A written business plan when start-up your firm? 42 Have you ever had any difficulty in obtaining the loan(s)? a Yes [ ] b No 43 If Yes, what are the reasons? You can tick more than one a Interest rate was too high No [ [ [ [ ] ] ] ] [ ] [ [ [ [ [ ] ] ] ] ] 67 b Not providing adequate documents (eg Project proposal) [ ] c Not having adequate collateral [ ] d Not having relations with credit officials [ ] e Business performance was not good f Others, please specify [ ] 44 Given a choice, which type of borrowing would you prefer? a Formal lenders [ ] b Informal lenders [ ] 45 How would you rate your access to credit in the last years? a Difficult [ ] b Neutral [ ] c Easy [ ] d Uncertain [ ] 46 The following factors are important to my business in choosing creditors, please circle the suitable number from to where indicates “strongly disagree” and indicates “strongly agree” Strongly Neutral Strongly agree disagree a No collateral required b Lower interest-rate c Immediate loan release/faster processing d Already having a borrowing relationship with the creditor e No/less complicated lending procedure f Better lending terms g Others, please specify …………………………………… SECTION 4: SOCIO-ECONOMIC CHARACTERISTICS OF OWNER/MANAGER 47 Your gender: a Male [ 48 Your age group: a Below 30 year old ] b Female [ ] [ ] b From 30 - 39 year old [ ] c From 40 – 49 year old [ ] d Above 50 year old [ ] 49 Your marital status: a Single/Never Married [ ] b Married [ ] c De factor relationship [ ] d Divorced/Separated [ ] [ ] [ ] [ ] 50 Your ethnicity: e Kinh f Hoa g Other (specify…………………………………………………………………………… ) 51 How many members are there in your household? (persons) 68 52 How many income earners are there in your household? (persons) 53 What is your household’s average monthly post-tax income? a Below million VND [ ] b From to below 16 million VND [ ] c From 16 to below 32 million VND [ ] d From 32 to below 64 million VND [ ] e 64 million VND and above 54 Is your business the main source of income for your household? a Yes [ ] 55 If No, what is the main source of your household income? a Salary from paid jobs b No [ ] [ ] b Pension [ ] c Other members’ business [ ] d Returns from investment (eg Property, Stocks, Bonds, Gold, etc) [ ] e Others (please specify……………………………………………………………………….) [ ] What was the highest educational level you completed? Never go to school Primary school Lower secondary school Upper secondary school Vocational training or year - College or year university Post-graduate (Master's/PhD) Others (please specify………………………………………………………………………) [ [ [ [ [ [ [ [ [ ] ] ] ] ] ] ] ] ] 56 a b c d e f g h i 57 Have you ever taken any of the following professional training courses? You can tick more than one a Business management skill [ ] b Leadership skill [ ] c Accounting and/or Financial Management [ ] d Human Resource Management [ ] e Marketing [ ] f Enterprise Law [ ] g Tax Law [ ] 58 How many years have you been doing business? (years) That’s the end of the survey Thank you for your time and effort in responding to this questionnaire Your participation in this survey is greatly appreciated If you have questions or comments about this research or about access to credits for small and medium sized enterprises in Viet Nam, please feel free to write these in the space below Once again, we assure you that your identity will remain STRICTLY ANONYMOUS 69 Appendix C Variable Description and Correlation C.1 Description of the Variables Name Owner characteristics MARRIED GENDER AGE1 AGE2 BACHELOR OWNER_EXP SMEs Characteristics FIRM_AGE SIZE2012 SECTOR2 SECTOR3 EXPORT Description Mean Standard Deviation Dummy variable taking value of if owner is married, otherwise Dummy variable taking value of if owner is male; otherwise Dummy variable taking value of if owner is younger than 30 and otherwise Dummy variable taking value of if owner is older than 40 and otherwise Dummy variable taking value of if owner has a bachelor degree or postgraduate and otherwise Number of years owner has been doing business 0.86037 0.691992 0.135524 0.373717 0.747433 0.34696 0.462145 0.342634 0.484287 0.434931 10.31725 6.282321 Number of years of establishment Number of employees in 2012 Dummy variable taking value of if SME is in manufacturing or construction sector, otherwise Dummy variable taking value of if SME is in service sector, otherwise Dummy variable taking value of if the firm export directly, otherwise 5.88501 25.11704 0.158111 4.800026 43.06432 0.36522 0.447639 0.098563 0.497762 0.29838 0.521327 0.099526 0.500733 0.300079 Characteristics of the largest loan SHORT_TERM Dummy variable taking value of if thelargest loan duration is less than year, otherwise LONG_TERM Dummy variable taking value of if the largest loan duration is more than years, otherwise 70 MONTHLY_PAID LOAN_AMOUNT LOAN_PURPOSE Dummy variable taking value of if interest payment mode is monthly, otherwise Total value of the loan in thousand VND Dummy variable taking value of if the largest loan purpose is for a new investment project, otherwise Source of financing for the largest loan BANK Dummy variable taking value of if the largest loan borrowed from a commercial bank MICRO Dummy variable taking value of if the largest loan borrowed from a microfinance institution MONEYLENDER Dummy variable taking value of if the largest loan borrowed from a money lender FRIEND Dummy variable taking value of if the largest loan borrowed from friends/relatives COMBANK_NW Network with commercial bank, on scale from = "Not at all" to = "very extensive" CUSTOMER_NW Network with customers, on scale from = "Not at all" to = "very extensive" ASSIST Dummy variable taking value of if SMEs received assistance from government officials to obtain the loan, otherwise SMEs Creditworthiness COLLATERAL Dummy variable taking value of if the loan is collateralized, otherwise ACC_BOOK Dummy variable taking value of if SME has an accounting book, otherwise 71 0.665072 6227601 0.265403 0.473099 3.57E+07 0.442598 0.312115 0.056872 0.463833 0.232149 0.047393 0.132701 0.483412 2.225873 0.170431 0.212984 0.340059 0.500913 1.777288 0.376398 0.316222 3.958932 0.465479 1.619822 C.2 Pairwise Correlation of the Independent Variables AGE1 AGE2 BACHELOR OWNER_EXP SIZE_START SECTOR2 SECTOR3 COMBANK_NWSTART SOCBANK_NWSTART FRIEND_NWSTART BIZPLAN AGE1 -0.3059* 0.0231 -0.3283* -0.0986* -0.0729 0.0296 -0.0565 -0.009 0.0031 -0.1432* AGE2 BACHELOR OWNER_EXP SIZE_START SECTOR2 SECTOR3 COMBANK _NWSTART SOCBANK _NWSTART FRIEND _NWSTART BIZPLAN -0.0003 0.5175* 0.1440* 0.0957* -0.1320* 0.1152* 0.0461 -0.0658 0.1035* -0.0226 0.1598* 0.0965* 0.0196 0.2478* 0.1328* 0.0198 0.2965* 0.1791* 0.1288* -0.0498 0.0549 0.0728 -0.0424 0.2257* 0.2574* -0.1079* 0.1295* 0.0379 -0.0887 0.1428* -0.3901* 0.0581 0.0388 0.038 0.1866* -0.0162 0.0043 0.0173 -0.0147 0.5018* 0.2290* 0.2190* 0.2613* 0.2147* 0.0194 Note: * indicates significance level of at least 5% 72 AGE1 AGE2 BACHELOR OWNER_EXP FIRM_AGE SIZE2012 SECTOR2 SECTOR3 EXPORT COMBANK_NW CUSTOMER_NW ACC_BOOK COLLATERIAL ASSIST AGE1 -0.3059* 0.0231 -0.3283* -0.2057* -0.1050* -0.0729 0.0296 -0.0303 -0.1011* -0.0715 -0.1902* -0.1402* -0.0199 AGE2 BACHELOR OWNER _EXP FIRM_AGE SIZE2012 SECTOR2 SECTOR3 EXPORT COMBAN K_NW CUSTO MER_NW ACC_BOOK COLLAT ERIAL ASSIST -0.0003 0.5175* 0.3451* 0.0873 0.0957* -0.1320* 0.0721 0.1766* 0.017 0.1237* 0.1866* 0.0788 -0.0226 -0.0011 0.2034* 0.0965* 0.0196 0.1764* 0.2470* 0.0378 0.4127* 0.1006* 0.0121 0.4625* 0.1883* 0.1288* -0.0498 0.07 0.1808* 0.0595 0.0743 0.2196* 0.1955* 0.3818* 0.1501* -0.0843 0.1688* 0.1671* 0.0256 0.0128 0.2705* 0.1282* 0.3031* -0.0751 0.1455* 0.2251* -0.0096 0.1718* 0.2600* 0.1355* -0.3901* 0.1210* 0.1256* -0.0273 0.1077* 0.1894* 0.073 -0.076 -0.0401 0.0228 -0.06 -0.1504* -0.1005* 0.1636* -0.047 0.1121* 0.0862 -0.0033 0.2312* 0.1918* 0.3487* 0.2438* -0.0065 -0.0646 0.052 0.1691* 0.0859 0.5021* Note: * indicates significance level of at least 5% 73 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Mason, USA: South-Western 78 ... different sources of credit for SMEs start-up financing Furthermore, SMEs are more likely to borrow from informal sources if their owners are younger, less educated and experienced The model also found... referral to someone else but trustworthiness also plays an important role Moreover, networks with lenders, connections with other enterprises and business associations also help to promote access... to whom I am greatly indebted My first and foremost thanks goes to my supervisor, Professor Christopher Gan He has been an excellent academic advisor who has always provided detailed, critical,