Financing preferences and decisions - the case of entrepreneurs of micro, small and medium enterprises

Vibhuti Mittal, T.V. Raman and Gurendra Nath Bhardwaj

International Journal of Business Excellence, 2024, vol. 32, issue 3, 296-319

Abstract: The Indian micro, small and medium enterprises (MSMEs) are dealing with the economic consequences of COVID-19 induced lockdowns and demand crisis. Amidst the uncertain environment, financing difficulties are one of the primary concerns for MSME entrepreneurs. The present study intends to assess the financing preferences and external financing decision of MSME entrepreneurs, along with the severity of financing constraints faced by them. The empirical data has been collected from the MSME entrepreneurs of the National Capital Region of India through a structured questionnaire. The results are interpreted through mean analysis, principal component analysis, and stepwise multiple regression analysis. Key findings suggest that firm entrepreneurs follow pecking order behaviour of financing and display hesitance towards new-age financing alternatives. Moreover, various personal and firm attributes are found to be having influence over the financing decision of MSME entrepreneurs. The study contributes to explaining the financing behaviour of MSMEs in the Indian context.

Keywords: entrepreneurial finance; MSME financing; financing behaviour; external financing decision; financing preferences. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=137254 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijbexc:v:32:y:2024:i:3:p:296-319

Access Statistics for this article

More articles in International Journal of Business Excellence from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().