Pengaruh preferensi sumber pembiayaan dan tingkat pendidikan terhadap pendapatan usaha mikro dan kecil di Indonesia

This research aims to analyze the effect of financing preference and the level of education of entrepreneurs on quintile of Micro and Small Enterprises (MSEs) revenue in Indonesia. The data used in this research is IFLS data (Indonesian Family Life Survey) waves 4 and 5 with a total sample of 10,336 business units that meet the criteria. Considering the heterogeneous characteristics of the data and the presence of outliers, this study used quantile regression method with a level of confidence (∝=0.05). The results of the analysis show that the education level of entrepreneurs has a positive effect on MSEs revenue and the effect is stronger on the higher MSEs revenue quantile. Meanwhile, the financing preference from own capital generates lower income compared to external or combined sources of financing and the difference is greater in the higher MSEs revenue quintile.Keywords: Micro and small enterprises, level of education, financing preference, quantile regression

The Impact of Equity Financing on the Performance of Capital-Constrained Supply Chain under Consumers’ Low-Carbon Preference

The reduction in carbon emissions by industrial enterprises is an important means for promoting environmental protection and achieving sustainable development. To determine the impact of carbon emissions reduction on supply chain operation and financing decision-making, in this study we designed three financing strategies, i.e., bank loan financing, equity financing, and hybrid financing (a combination of bank loan financing and equity financing), for a manufacturer (leader) and a low-carbon supply chain composed of a capital-constrained retailer, constructed Stackelberg game models, solved the equilibrium results under each financing strategy using the reverse recursion method, and revealed the financing preference of the supply chain member companies through comparative analysis. The results showed that the increase in the consumers’ low-carbon preference and equity financing ratio have positive impacts on supply chain equilibrium, a result that is opposite that for the impact of the interest rate of bank loan financing; additionally, the abovementioned three factors jointly determine the profit of the manufacturer of the low-carbon supply chain, while the retailer’s profit is affected by the equity dividend ratio. Finally, we present the conditions for the financing preference of the manufacturer and the retailer. The findings of this study can provide references for low-carbon supply chain companies to make appropriate management decisions.

Determinants of Micro and Small Scale Enterprises’ financing preference in line with POH and Access to Credit: Empirical Evidence from Entrepreneurs in Ethiopia, Benishangul-Gumuz Regional State

The purpose of this study was to examine factors that determine micro and small scale enterprises’ financing preference in line with pecking order theory and access to credit in Benishangul-Gumuz Regional State of Ethiopia. The study used primary data collected using cross sectional survey questionnaire. The sample of this study was 296 enterprises selected using proportional stratified random sampling technique. The data was analyzed using descriptive and logistic regression analysis. Accordingly, the results of logistic regression revealed that business experience, collateral, gender, motivation and enterprises’ sectoral engagement affect financing preference of enterprises in line with pecking order hypothesis. To investigate access to credit determinants, only enterprises that need to raise capital through credit were considered. As a result, the logistic regression output revealed that business experience, size, sectoral engagement, collateral, interest rate, loan repayment period, financial reporting, preparation of business plan, location and educational background of entrepreneurs affect access to credit of enterprises. However, more evidence is needed on enterprises’ financing preference and access to credit determinants before any generalization of the results can be made for the fact that the empirical tests were conducted only on 296 entrepreneurs since 2019. Therefore, the findings are valid and practicable only for the entrepreneurs under the study and the results cannot be assumed to extend beyond this group of entrepreneurs to different study periods. Despite its limitations, the study makes an original contribution to the literature of small business finance by investigating determinants of micro and small scale enterprises’ financing preference in line with pecking order hypothesis and access to credit in Benishangul Gumuz regional state of Ethiopia as a developing country.

Determinants of Micro and Small Scale Enterprises’ financing preference in line with POH and Access to Credit: Empirical Evidence from Entrepreneurs in Ethiopia, Benishangul-Gumuz Regional State

Purpose: The purpose of this study was to examine factors that determine micro and small scale enterprises’ financing preference in line with pecking order theory and access to credit in Benishangul-Gumuz Regional State of Ethiopia.Design / Methodology / Approach: The study used primary data collected using cross sectional survey questionnaire followed by mixed research approach. The sample of this study was 296 enterprises selected using proportional stratified random sampling technique. The data was analyzed using descriptive and logistic regression analysis.Findings: The results of logistic regression analysis revealed that business experience, collateral, gender, motivation and enterprises’ sectoral engagement affect financing preference of enterprises in line with pecking order hypothesis. On the second step, only enterprises that need to raise capital through credit were considered to investigate access to credit determinants. Accordingly, the logistic regression result revealed that business experience, size, sectoral engagement, collateral, interest rate, loan repayment period, financial reporting, preparation of business plan, location and educational background of entrepreneurs affect access to credit of enterprises. Research limitations/Implications: More evidence is needed on enterprises’ financing preference and access to credit determinants before any generalization of the results can be made. In addition, the empirical tests were conducted only on 296 entrepreneurs since 2019. Therefore, the results of the study cannot be assumed to extend beyond this group of entrepreneurs to different study periods.Originality/value: This paper adds value to the literature on the determinants of micro and small scale enterprises’ financing preference in line with pecking order hypothesis and access to credit.

WORKING CAPITAL FINANCING PREFERENCE AMONG SMALL BUSINESSES IN CAMBODIA

The purpose of this paper is to investigate working capital financing preference among small businesses in Cambodia using a quantitative and qualitative approach. Small business often relies heavily on internal finance as a major source of short-term finance for working capital needs. This is because small businesses are likely to face problems associated with their size when accessing external finance, such as information asymmetry and higher agency costs. Interestingly, using descriptive statistics and inferential statistics, the findings lead us to believe that these firms mostly relied on internal sources (retained profit, early settlement discount, delayed payment to suppliers) of finance as compared to external sources (bank loan and equity). In some cases, they have to rely on informal sources (private, family, friend, money counting/lenders, funds/wealthy families, rotating savings and credit associations) to finance working capital requirement. These results suggest that firms experience significant information costs that prevent them from gaining access to traditional sources of financing. The findings of the study will be useful to the financial institutions that fund SMEs and can help the policymakers to formulate strategies and programs that will support SMEs at different stages of the financial chain in Cambodia.

An Empirical Study on Financing Preference of Listed Military Industry Enterprises in China

Financing is an important part in the development of military enterprises, and it plays an important role in the development of military enterprises. By using empirical analysis method, 22 companies are selected as samples. The factor analysis and multivariate linear regression method are used to quantitatively analyze the internal factors of the company. These internal factors affect the financing preference of listed companies in China’s military industry. Then conclusions are drawn and relevant suggestions are put forward.