Financing Constraints of Small and Medium Enterprises: cases study of Southern border provinces of Thailand
Keywords:
SMEs, Financial constraints, Southern Border provinces of ThailandAbstract
This study is a survey research aimed to analyze the financial constraints of small and medium sizes enterprises (SMEs) in the three southern border provinces of Thailand. The data were collected using a structured questionnaire from 410 small and medium enterprises. Appropriate descriptive statistics and logistic regression were applied to analyze such factors.
This study showed that the issues pertaining to financing constraints for business firms in the three southern border provinces of Thailand have been eased. However, it was still found restrictions on access to financing. The factor that important obstacles to their financial access was lack of credibility and business experience, complexity and cumbersome processes in loan applications, inadequate collateral, non-performing loan history, high risk project and lack of purpose of the loan. In addition, clearly government policy in support, response of commercial banks and variety of financing sources was necessary factor for accessing funding for SMEs entrepreneurs in the three southern border provinces.
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