Determinants of Access to Bank Financing in SMEs in Mexico

Artemio Jiménez-Rico (), Claudia Susana Gómez-López and Johanan Zamilpa
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Artemio Jiménez-Rico: Department of Management and Business Administration, University of Guanajuato, Guanajuato 36250, Mexico
Claudia Susana Gómez-López: Department of Economics and Finance, University of Guanajuato, Guanajuato 36250, Mexico
Johanan Zamilpa: Department of Management and Business Administration, University of Guanajuato, Guanajuato 36250, Mexico

JRFM, 2023, vol. 16, issue 11, 1-29

Abstract: Several empirical studies indicate that the lack of financing is one of the main barriers that affects the economic growth of small and medium enterprises (SMEs). The main objective of this investigation was to determine to what extent the economic sector, the enterprise size, the characteristics inherent to the enterprise, the legal status, the variables linked to the performance of the enterprise, and the attributes of the owner influence the access to the bank financing of SMEs in Mexico. Using a discrete-response probit regression model, the impact of enterprise characteristics on the probability of obtaining a bank loan was determined. The data collected are from the Enterprise Surveys of Mexico, carried out by the World Bank. The sample of 1480 enterprises is representative by enterprise size, by economic sector, and by region. The research has a quantitative approach with a correlational scope, and a nonexperimental and transectional design. One of the main results highlights that the determinants with the greatest influence on access to bank financing are: the age, the small size, foreign participation, and the manufacturing sector. These results are consistent with other empirical studies, as well as with the pecking-order theory and the financial life-cycle theory.

Keywords: credit demand; loan; bank financing; SMEs; probit model (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
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