Debt Financing Management: The Modes of Debt Financing for Small and Medium-Sized Enterprises (SEMs) in Pakistan
DOI:
https://doi.org/10.52131/jom.2020.0202.0016Keywords:
SMEs, Debt Financing, Financial Institutes, Islamic Bank, Commercial BankAbstract
Purpose – The basic purpose of this paper is to analyze the debt financing of small and medium-sized enterprises (SMEs) in Pakistan through different modes from conventional and non-conventional (Islamic) institutes.
Design/Methodology/Approach – Data is publicly available on databases and websites about debt financing of small and medium-sized enterprises (SMEs) of Pakistan, thus data is collected from these databases and websites in the form of articles and handbooks about Pakistan.
Findings – It is found from the analysis that a lot of financing choices and modes are available for small and medium-sized enterprises (SMEs) in Pakistan. These modes are provided by both conventional and non-conventional (Islamic) financial institutes. All the debt modes are discussed in the paper. In addition, there are some drawbacks of debt financing that arises from conventional and non-conventional (Islamic) financial institutes, which alleviate small and medium-sized enterprises (SMEs) from adopting these modes
Research Limitations/Implications – Some financial institutes, especially banks, lack knowledge and information about small and medium-sized enterprises (SMEs) in Pakistan. Banks could lessen it by acting as a mediator for small and medium-sized enterprises (SMEs).
Originality/Value – This review paper's main contribution is to analyze the contribution of financial institutes in debt financing small and medium-sized enterprises (SMEs) in Pakistan. Paper discusses all the modes available for the small and medium-sized enterprises (SMEs) in Pakistan thoroughly through conventional and non-conventional (Islamic) financial institutes.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2020 Waseem Ul Hameed, Hisham Bin Mohammad, Javed Iqbal, Shazma Razzaq, Nadeem Maqbool
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.