Entrepreneurial-Specific Characteristics and Access to Finance of SMEs in Khyber Pakhtunkhwa, Pakistan

Suhail Ahmad, Tahar Tayachi (), Sahibzada Ghiasul Haq, Wangari Wang’ombe and Fawad Ahmad
Additional contact information
Suhail Ahmad: Faculty of Management Sciences, Sarhad University of Science and Information Technology, Peshawar 25000, Khyber Pakhtunkhwa, Pakistan
Tahar Tayachi: Department of Finance, Effat College of Business, Effat University, Jeddah 21478, Saudi Arabia
Sahibzada Ghiasul Haq: Faculty of Management Sciences, Sarhad University of Science and Information Technology, Peshawar 25000, Khyber Pakhtunkhwa, Pakistan
Wangari Wang’ombe: Department of Economics and Marketing, De Montfort University, Leicester LE1 4NR, UK
Fawad Ahmad: Faculty of Management Sciences, Sarhad University of Science and Information Technology, Peshawar 25000, Khyber Pakhtunkhwa, Pakistan

Sustainability, 2022, vol. 14, issue 16, 1-14

Abstract: Small and medium-sized enterprises (SMEs) not only support the country in financial and business aspects but also overcome unemployment by creating job opportunities. The SME sector contributes more than thirty-five percent of the country’s Gross Domestic Product (GDP). The study aims to discover entrepreneurial-specific characteristics and their impact on accessing bank financing. The study collects primary data through questionnaires. Approximately 204 questionnaires were distributed randomly, out of which 192 were returned and analyzed through a binary logit model. Entrepreneurial personal traits play a vital role in obtaining financing from banks and other financial institutions in Pakistan. The study reveals that age and level of education are significant and play a vital role in accessing bank financing in Khyber Pakhtunkhwa (KP). Conversely, gender, experience, and SME skills that entrepreneurs have are insignificant to accessing bank financing in KP. This paper attempts to identify the entrepreneurial-specific characteristics within a large sample size of enterprises and compares the small and medium-sized ones separately in KP, Pakistan. Additionally, the study reveals how an entrepreneur’s personal traits impact the accessibility of bank financing and the need to formulate strategies and policies to strengthen these entrepreneurial-specific characteristics through training, development, and personality growth for the efficient operations of the SME sector in KP, Pakistan. The study is also significant for policymakers, stakeholders, and lenders.

Keywords: SMEs; access to finance; SMEs entrepreneur; entrepreneurial characteristics; Pakistan (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/16/10189/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/16/10189/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:16:p:10189-:d:889899

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().