Mental budgeting and the financial management of small and medium entrepreneurs
Mohammed Ziaul Hoque
Cogent Economics & Finance, 2017, vol. 5, issue 1, 1291474
The present study examines the influences of mental budgeting on the financial management of SMEs, via a survey of SME owners’ practices regarding various issues in financial management. The samples of 201 SMEs were randomly selected from the city of Chittagong, Bangladesh and interviewed using a structured questionnaire and the data have been analysed using descriptive statistics, principal component analysis and ordinal logistic regression. The results of the study show that own savings and loans from relatives are the major sources of the business capital with micro-credit coming in the second place. The earnings from existing business were mostly used to meet family expenditures. The results also show that Mental Budgeting (MB) and its determinants like other sources of income over existing business, never spending more than a fixed amount, having an overview of checking balance, long-term future orientation and financial product knowledge have significant influences on the financial management of SMEs. However, no evidences of several aspects were found in the same field.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1291474
Ordering information: This journal article can be ordered from
Access Statistics for this article
Cogent Economics & Finance is currently edited by Steve Cook, Caroline Elliott, David McMillan, Duncan Watson and Xibin Zhang
More articles in Cogent Economics & Finance from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().