The Effect of Access to Financial Resources on the Performance of Small and Medium Production Enterprises in Champasak province

This research aims to investigate the variables influencing small and medium-sized businesses' ability to obtain financing in the province of Champasak...

Abstract

This research aims to investigate the variables influencing small and medium-sized businesses' ability to obtain financing in the province of Champasak. In order to gather and combine data from interviews with owners of small and medium-sized manufacturing businesses in Champasak Province, a total of 225 units in 2023, a questionnaire was employed as the study's instrument. The determinants influencing small and medium-sized businesses' credit access are tested using a quantitative data analysis utilizing the Logistic Regression Model. The study's findings indicate that the factors associated with the highest level of education are those that can be statistically tested and explained with a confidence level of 90%. The background of previous business owners, the exister.ce of a business plan, the business unit's average yearly revenue, and the workforce size, all of which are positively correlated with small and medium-sized businesses' credit access in Champasak province. SMEs' credit access is impacted in the opposite way by the medium business unit factor and the business unit's total cost factor when conducting business. It is evident that tiny manufacturing firms require more money to acquire sources of funding for operations than do mediurn-sized businesses.