Developing a Financing Model for Small and Medium-Sized Enterprises in Zanjan Province

Sheida Rezaei; Babak Haji Karimi; Amir Najafi; Bamdad Partovi

Authors

Sheida Rezaei Department of Management, Ab.C., Islamic Azad University, Abhar, Iran Author https://orcid.org/0009-0002-8677-2222
Babak Haji Karimi Department of Management, Ab.C., Islamic Azad university, Abhar, Iran https://orcid.org/0000-0003-2372-0791
Amir Najafi Department of Industrial Engineering, NT.C., Islamic Azad University, Tehran, Iran Author https://orcid.org/0000-0003-1949-6846
Bamdad Partovi Department of Economics, Ab.C., Islamic Azad University, Abhar, Iran Author https://orcid.org/0000-0003-3448-0295

Keywords:

Financing model, Small and medium-sized enterprises, SME financing, Structural equation modeling, Zanjan

Abstract

The present study aimed to develop a financing model for small and medium-sized enterprises (SMEs) in Zanjan Province using a qualitative-quantitative mixed-methods approach. The qualitative phase involved experts, with a sample of 50 participants, and data were collected through interviews. In the quantitative phase, the statistical population comprised managers and experts working in SMEs in Zanjan Province; using Cochran's formula, the sample size was estimated at 284. A researcher-developed 64-item questionnaire was used after the qualitative phase. Face validity was used to assess the validity of the instrument, and Cronbach's alpha was used to assess reliability. Data were collected using stratified sampling and analyzed with SPSS and AMOS. Exploratory findings identified 10 factors related to SME financing. Confirmatory factor analysis indicated significant effects of the economic environment, government environment, modern financing methods, domestic financing, public participation, supportive policies, value creation, investment, foreign financing, and borrowing on SME financing. The Friedman ranking test further showed that foreign financing ranked first, with a mean rank of 9.30, whereas value creation had the lowest mean rank (2.98).

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