Identifying and ranking factors affecting financing of small and medium-sized businesses in East and West Azerbaijan provinces

Mahamad Salahi, Ali; Ranjpour, Reza; Naghdi, Sajad; Karimi Tekanloo, Zahra

Identifying and ranking factors affecting financing of small and medium-sized businesses in East and West Azerbaijan provinces

Document Type : Article extracted from thesis

Authors

Ali Mahamad Salahi ¹

Reza Ranjpour ²

Sajad Naghdi ³

Zahra Karimi Tekanloo ⁴

¹ PhD student in Economic Sciences, Aras international campus, University of Tabriz, Tabriz, Iran

² Professor, Development and Planning Department, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran

³ Associate Professor, Department of Accounting, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran

⁴ Professor, Department of Economics, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran

Abstract

Background and Objective: Financing is a critical pillar for the growth and sustainability of small and medium enterprises (SMEs), which play a key role in job creation, GDP growth, and innovation. In East and West Azerbaijan provinces, despite potentials such as border locations and free trade zones, SMEs face challenges like complex loan acquisition processes, heavy collateral requirements, and high interest rates. This study aims to identify, analyze, and rank factors affecting SME financing in these provinces to provide practical guidance for policymakers.
Methodology: This study employed a mixed-method (qualitative-quantitative) approach. In the qualitative phase, semi-structured interviews with 18 experts (purposively selected) and thematic analysis using Jupyter Notebook identified initial factors. In the quantitative phase, data from 100 SME managers were analyzed using DEMATEL and DANP techniques. Calculations were performed in Python, with reliability (Cronbach’s alpha: 0.918) and validity (factor analysis explaining 69.9% of variance) confirmed.
Results and Findings: Key factors include access to loans (weight: 0.076602), government support (weight: 0.077008), and financial credit (weight: 0.076977). Critical components identified include a detailed business plan and managerial experience. It is recommended to enhance SME access through flexible financing and targeted support.The study’s innovation lies in using DEMATEL and DANP to analyze complex relationships in the specific context of these provinces, offering a practical framework for policymaking that can serve as a model for other regions.

Keywords

: Financing

Small and Medium Enterprises

DEMATEL

DANP

East and West Azerbaijan

Subjects

Urban & Regional Economic

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