Firm characteristics and credit constraints among SMEs in the Philippines
Open Access
- 31 May 2021
- journal article
- Published by Asociacion Espanola de Contabilidad y Administracion de Empresas (AECA) in Small Business International Review
- Vol. 5 (1), e332
- https://doi.org/10.26784/sbir.v5i1.332
Abstract
Access to finance is critical to support the growth of small and medium-sized enterprises (SMEs). However, lack of access to adequate financing is one of the biggest obstacles that SMEs face. This paper analyzed the relationship between firm characteristics and credit constraints among SMEs in the Philippines. We determined which firm characteristics are correlated to the predicted probability of being credit-constrained or “quasi-constrained” — i.e., able to borrow from informal sources. Estimates of marginal effects at the means (MEMs) from logistic regressions provide some suggestive evidence that increased firm size, previous purchase of fixed assets, and increased use of digital technologies for accounting and financial management are associated with a lower predicted probability of being credit-constrained. The use of digital technologies in accounting and financial management is also associated with a lower probability of credit constraint in informal financial markets.Keywords
Funding Information
- Konrad-Adenauer-Stiftung (S20250000V)
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