Credit Accessibility and Performance of SMEs in Kathmandu Valley
Bhandari, Sabita (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025060319907
https://urn.fi/URN:NBN:fi:amk-2025060319907
Tiivistelmä
This study seeks to explore the importance of microfinance to microfinance for small and medium enterprise (SME) development in the context of business owners in problems and prospects of SMEs in Kathmandu Valley. Using a quantitative descriptive research design, the methods was to gain an understanding the perspectives of microloans about the availability, accessibility, interest rates, collateral, and usefulness of business training programs. Through structured questionnaires and semi-structured interviews, primary data was obtained from 109 SME owners and managers.
The result shows that although if loan pricing does affect SMEs financial performance but at low extent, the flexible loan repayment schedule and financial institutions accessibility plays important role in making SMEs successful. Weak correlation was seen with record-keeping practices and financial outcomes, indicating the role of external environmental factors is more important. Collateral security was also identified crucial as affecting financial performance which implies that it has both opportunity and barrier dimensions.
The study finally concludes that greater financial access, adjustment in repayment regimes with supportive structures, and institutional outreach play a significant role in the growth of SMEs. Moreover, it implies that financial institutions need to create lending models which are outlined for SMEs and develop non-financial support services such as training facility. The research contributes to the literature by presenting context-based issues regarding the financing of SMEs in a developing economy and practically useful information for policymakers, micro-finance institutions and SME owners. In conclusion, access to financial services and targeted support programs can create an ecosystem for the sustainable development of SMEs in Nepal, especially for business owners.
The result shows that although if loan pricing does affect SMEs financial performance but at low extent, the flexible loan repayment schedule and financial institutions accessibility plays important role in making SMEs successful. Weak correlation was seen with record-keeping practices and financial outcomes, indicating the role of external environmental factors is more important. Collateral security was also identified crucial as affecting financial performance which implies that it has both opportunity and barrier dimensions.
The study finally concludes that greater financial access, adjustment in repayment regimes with supportive structures, and institutional outreach play a significant role in the growth of SMEs. Moreover, it implies that financial institutions need to create lending models which are outlined for SMEs and develop non-financial support services such as training facility. The research contributes to the literature by presenting context-based issues regarding the financing of SMEs in a developing economy and practically useful information for policymakers, micro-finance institutions and SME owners. In conclusion, access to financial services and targeted support programs can create an ecosystem for the sustainable development of SMEs in Nepal, especially for business owners.