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Proposal, BUS 511

This research proposal aims to identify the most influential factors on the difference between approved and applied loan amounts for SME entrepreneurs in Bangladesh. The researcher will survey 20 SME clients of Brac Bank and IDLC Finance Ltd to collect primary data on financial performance, reputation, and business age. Secondary data will also be collected from annual reports. Data analysis using SPSS and Excel will test the hypotheses that better financial performance, reputation, and more business age lead to higher approval rates. Limitations include time, cost, and access constraints.

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Smita Nimilita
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153 views4 pages

Proposal, BUS 511

This research proposal aims to identify the most influential factors on the difference between approved and applied loan amounts for SME entrepreneurs in Bangladesh. The researcher will survey 20 SME clients of Brac Bank and IDLC Finance Ltd to collect primary data on financial performance, reputation, and business age. Secondary data will also be collected from annual reports. Data analysis using SPSS and Excel will test the hypotheses that better financial performance, reputation, and more business age lead to higher approval rates. Limitations include time, cost, and access constraints.

Uploaded by

Smita Nimilita
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Research Proposal

Introduction The course of Business Statistics in the MBA program of North South University requires the completion of a research paper on a particular problem related to the business sector. As a student of this course I have to prepare one and I will work on the loan related problems faced by the entrepreneurs of Small and Medium Enterprises (SMEs) of Bangladesh. Eventually the title of my research report will be Factors influencing the amount of SME loan approved by the financial institutions against the amount of loan applied by the entrepreneurs of Bangladesh. Rationale of the Study SME which is the acronym of Small and Medium Enterprise is one of the most talked about issues of present time. The government of Bangladesh wants this sector to flourish at any cost now. Bangladesh Bank has released improvised SME loan policy and has opened a SME division during 2009. And now it is mandatory for all the banks to have a separate SME service center. Actually the government has realised the importance of the growth of Small and Medium Enterprises. On the other hand, SME sector has several problems that need to be understood. Among those funding problem is the major one. So, a study on the entrepreneurs regarding their problems related to the loan achievement will help the government, financial institutions and even the owners of the SMEs to understand the crucial issues. Objective of the Study The main objective of the study is to identify the most influential reason behind the difference between the approved and applied loan amount.

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Research Proposal

Theoretical Model The variable of interest is the percent of loan approved against the applied amount and independent variables are financial performance of the enterprise, reputation of the enterprise and age of the business enterprise. Loan approved against loan applied = [financial performance, reputation, age of the enterprise] Y = [X1, X2, X3] Here, Y = Z1/ Z2 100 = loan approved / loan applied 100 Regression Model = b0 + b1X1 + b2 X2 + b3 X3 Here, = Percent of loan approved against the applied amount X1 = Financial performance (DSCR ratio) of the enterprise X2 = Riskiness of the enterprise X3 = Experience of the proprietor/director/partner b0 = y intercept b1 = Slope of the regression line b2 = Slope of the regression line b3 = Slope of the regression line

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Research Proposal

Hypotheses Better the financial performance of the SMEs, the percent of loan approved to loan applied increases. The reputation of the SMEs increases, the percent of loan approved to loan applied increases. More the age of the enterprise, the percent of loan approved to loan applied increases.

Methodology of the Study Research Design It will be an exploratory research. Sources of Data Collection I will use both of the following sources Primary Source: I will use one survey questionnaire Secondary Source: Annual reports of the financial institutions, articles, web sites, newspapers and books Data Collection Method I will obtain necessary data for this project by making a survey on SME clients who are in a loan contract with the financial institutions. A survey questionnaire will be circulated among the clients of a bank (Brac Bank) and a non banking financial institution (IDLC Finance Ltd.). I will also take face to face interview of few clients to get detailed information. Through email I will send few questionnaires to the clients. Moreover, I have a plan to go for another round of face to face interview of the Brac Bank and IDLC personnel. Sampling Technique
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Research Proposal

The sample size is 20 (SME clients). 10 will be from Brac bank and rest will be from IDLC Finance Ltd. Data Analysis It will be done using data analysis software named SPSS. I will also use MS Excel as per requirement. Limitations
Time and cost constraints Non availability of desired clients at the right time Difficulties in getting interviews of IDLC and Brac Bank personnel due to their busy schedules Non availability of detailed information on SME loan due organizations privacy policy Lack of Information regarding Bangladesh Bank rules and regulations

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