Table of Contents

Declaration …………………………………………………………………………………………………………………………………. 6
Acknowledgements ……………………………………………………………………………………………………………………… 9
Abstract ……………………………………………………………………………………………………………………………………. 10
Chapter – 1………………………………………………………………………………………………………………………………… 11
INTRODUCTION ……………………………………………………………………………………………………………… 11
1.1 Background: …………………………………………………………………………………………………………………….. 11
1.2 Aim and overall research questions …………………………………………………………………………………….. 12
1.3 Interest and suitability of the researcher ………………………………………………………………………………. 14
1.4 Recipients of research: ………………………………………………………………………………………………………. 14
1.5 Major contribution of the study ………………………………………………………………………………………….. 15
1.6 Research Limitations ………………………………………………………………………………………………………… 15
1.7 Organisation of the dissertation ………………………………………………………………………………………….. 16
CHAPTER -2 ……………………………………………………………………………………………………………………………. 17
LITERATURE REVIEW ……………………………………………………………………………………………………….. 17
2.1 Introduction …………………………………………………………………………………………………………. 17
2.2 Theoretical Definitions ……………………………………………………………………………………………………… 17
2.3 Critical Evaluation of the Theories Built on the FIs Growth and Success of SMEs ……………………. 18
2.3.1 The Hampering and Interactive Issues of FIs towards Success of SMEs ……………………………. 18
2.3.2 Determinants of capital structure of SMEs …………………………………………………………………….. 20
2.3.3 Link between capital structure and financial institutions development ………………………………. 21
Review of Empirical Studies …………………………………………………………………………………………………… 21
2.4 Empirical Studies in India ………………………………………………………………………………………………. 21
2.4.2 The Role of Financial Institutions in Financing SMEs in India …………………………………………. 22
2.4.2.3 Non-Government organization (NGO/MFIs) ………………………………………………………………. 23
2.4.2.4 Credit unions …………………………………………………………………………………………………………… 24
2.5 Small and Medium Enterprise sector in India ……………………………………………………………………….. 25
2.5.1 Defining the sector ……………………………………………………………………………………………………… 26
2.5.2 Contribution of SME sector to Indian Economy……………………………………………………………………. 27
2.5.3 Challenges of SMEs in India ……………………………………………………………………………………….. 28
2.5.4 Initiatives which are taken by Government in order stimulate SMEs in India …………………….. 30
2.6 Empirical studies outside India …………………………………………………………………………………………… 31
2.6.1 Africa ……………………………………………………………………………………………………………………….. 31
2.6.2 Asia and Latin America ………………………………………………………………………………………………. 31
2.6.3 Europe ………………………………………………………………………………………………………………………. 32
2.7 Conclusion on Literature Review ……………………………………………………………………………………….. 32
CHAPTER – 3 …………………………………………………………………………………………………………………………… 34
Research Methodology …………………………………………………………………………………………………………… 34
3.1 Introduction ……………………………………………………………………………………………………………………… 34
3.2 Research questions ……………………………………………………………………………………………………………. 35
3.3 Research Hypothesis …………………………………………………………………………………………………………. 36
3.5 Research philosophy …………………………………………………………………………………………………………. 37
3.6 Research approach ……………………………………………………………………………………………………………. 38
3.6.1 Inductive approach: …………………………………………………………………………………………………….. 39
3.6.2 Deductive approach: …………………………………………………………………………………………………… 39
3.7 Research strategy ……………………………………………………………………………………………………………… 40
3.8 Research Choice……………………………………………………………………………………………………………….. 41
3.9 Time Horizon …………………………………………………………………………………………………………………… 41
3.10 Data collection ……………………………………………………………………………………………………………….. 42
3.11 Primary research …………………………………………………………………………………………………………….. 42
3.11.1 Quantitative primary research …………………………………………………………………………………….. 42
3.11.2 Quantitative-Questionnaire method …………………………………………………………………………….. 43
3.12 Secondary Research ………………………………………………………………………………………………………… 44
3.13 Data analysis ………………………………………………………………………………………………………………….. 44
3.14 Sampling ……………………………………………………………………………………………………………………….. 45
3.15 Ethics…………………………………………………………………………………………………………………………….. 47
3.16 Validity and Reliability ……………………………………………………………………………………………………. 47
3.17 Limitations of the study …………………………………………………………………………………………………… 48
3.18 Conclusion …………………………………………………………………………………………………………………….. 48
CHAPTER – 4 ………………………………………………………………………………………………………………………….. 49
STUDY FINDINGS AND ANALYSIS ……………………………………………………………………………………. 49
4.1 Introduction ……………………………………………………………………………………………………………………… 49
4.2 Methodology of Research ………………………………………………………………………………………………….. 49
4.3 Percentage of Responses from SMEs and financial institutions ………………………………………………. 50
4.4 Small and Medium Scale enterprises …………………………………………………………………………………… 51
4.4.1 Key Characteristics of the Respondents …………………………………………………………………………. 51
4.4.2 Form of Ownership …………………………………………………………………………………………………….. 53
4.4.3The nature of company‟s operations ………………………………………………………………………………. 54
4.4.4 Age of business ………………………………………………………………………………………………………….. 55
4.4.5 Hypothesis…………………………………………………………………………………………………………………. 57
4.4.6 Experience on loan application …………………………………………………………………………………….. 57
4.4.7 Loan success rate ……………………………………………………………………………………………………….. 60
4.4.8 Major threats to the development of SMEs…………………………………………………………………….. 75
4.4.9 Problems in accessing finance ……………………………………………………………………………………… 76
4.4.10 Most preferred type of external financing …………………………………………………………………….. 78
4.5 Financial institutions …………………………………………………………………………………………………………. 79
4.5.1 Gender of respondents ………………………………………………………………………………………………… 81
4.5.2 Age of respondents……………………………………………………………………………………………………… 81
4.5.3 Type of products and services offered …………………………………………………………………………… 82
4.5.4 Experience in dealing with SME loans ………………………………………………………………………….. 85
4.5.5 Obstacles …………………………………………………………………………………………………………………… 86
4.5.6 Prioritization while giving loans …………………………………………………………………………………… 87
4.5.7 Factors prevent SME operators in borrowing …………………………………………………………………. 88
4.5.8 Drivers of FIs involvement with SMEs …………………………………………………………………………. 90
4.5.9 Usefulness …………………………………………………………………………………………………………………. 91
4.5.10 Strategies to improve accessibility of finance to SMEs ………………………………………………….. 93
4.5.11 Opinion on Government support…………………………………………………………………………………. 94
4.5.12 should the government support the SME ……………………………………………………………………… 95
4.6 Hypothesis: Conclusion …………………………………………………………………………………………………….. 96
CHAPTER – 5 …………………………………………………………………………………………………………………………… 98
CONCLUSION ……………………………………………………………………………………………………………………… 98
5.1 Validation of laid hypothesis ………………………………………………………………………………………… 102
5.2 Conceptual Framework ……………………………………………………………………………………………………. 103
Recommendations ………………………………………………………………………………………………………………… 106
CHAPTER- 6 ………………………………………………………………………………………………………………………….. 109
Self- Reflection on own learning and performance …………………………………………………………………… 109
Introduction …………………………………………………………………………………………………………………………. 109
7.2 Learning style…………………………………………………………………………………………………………………. 109
7.2.1Theoretical Background ……………………………………………………………………………………………… 109
7.2.2 Reflection on own learning styles ……………………………………………………………………………….. 112
7.3 Assessment of Research Process………………………………………………………………………………………… 113
7.3.1 Process ……………………………………………………………………………………………………………………. 113
7.3.2 Use of Sources …………………………………………………………………………………………………………. 114
7.3.3 Formulation of dissertation process …………………………………………………………………………….. 114
7.4 Skills development ………………………………………………………………………………………………………….. 115
7.4.1 Research skills …………………………………………………………………………………………………………. 115
7.4.2 Time management skills ……………………………………………………………………………………………. 115
7.4.3 Interpersonal Skills: ………………………………………………………………………………………………….. 115
7.4.4 Learning skills ………………………………………………………………………………………………………….. 116
7.4.5 Critical thinking skills ……………………………………………………………………………………………….. 116
7.4.6 Communication skills ……………………………………………………………………………………………….. 116
7.4.7 Team working skill …………………………………………………………………………………………………… 117
7.5 Future Application of Learning and Skills Development ……………………………………………………… 117
REFERENCE………………………………………………………………………………………………………………………….. 118
APPENDICES ………………………………………………………………………………………………………………………… 122