An Analysis of the Payment Habits of Hungarian Micro, Small and Medium-sized Enterprises – In Focus: Cash Usage

Ágnes Illés Belházy (), Tamás Végsõ () and Anikó Bódi-Schubert ()
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Ágnes Illés Belházy: Magyar Nemzeti Bank
Tamás Végsõ: Magyar Nemzeti Bank
Anikó Bódi-Schubert: Magyar Nemzeti Bank

Financial and Economic Review, 2018, vol. 17, issue 4, 53-94

Abstract: In this study, we examine the cash usage of Hungarian micro, small and mediumsized enterprises along with the main reasons behind the use of cash by analysing data from a questionnaire-based survey conducted on a sample comprising 1,000 corporate managers. In this context, we study the payment habits of enterprises, their ties with financial institutions, the degree of distrust in the Hungarian corporate sector and potential tools for the reduction of cash usage. Wherever possible, we compare our results to the conclusions of previously published Hungarian or foreign research conducted with a similar focus. According to our most important findings, credit transfer is clearly the most prominent payment method both in the SME sector and among microenterprises, but the rate of cash usage is also high and it does not exhibit a declining trend. Positive changes can be observed, however, in payment discipline and business confidence. Hungarian enterprises are loyal to their account manager banks, and although they are essentially open to electronic payment solutions they are highly sensitive to the associated costs.

Keywords: SME sector; microenterprises; cash usage; payment habits; business confidence; credit institution preferences; electronic payment solutions (search for similar items in EconPapers)
JEL-codes: G30 G32 L14 (search for similar items in EconPapers)
Date: 2018
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