CRITICAL FACTORS ASSOCIATED WITH THE ACCESS TO BANK CREDIT: AN EXPLORATORY STUDY

Purpose of the study: The purpose of the current study is to get subjective information from SMEs about their views and elicit the experience of getting loans and why not getting loans.\r\nMethodology: This study has been used qualitative research and findings have been gathered using face-to-face in-depth semi-structured interviews.\r\nMain Findings: Findings showed that there are two types of SME firms categorized in 1) Firms that are willing to take a loan but unable to get them and 2) Firms that have access to finance but don’t want to obtain them, different themes have been extracted from the aforementioned categorization.\r\nApplications of this study: This research can be effective to develop an economy in terms of employment generation, human resource development, value addition, poverty alleviation, income equality, entrepreneurial culture, and innovation, and Pakistan is no exception in this regard.\r\nNovelty/Originality of this study: The study is contributing to running a manufacturing unit, usually a large land area is required. Moreover, business locations are preferred near to markets for ease of doing business. Since all these preferred choices require a lot of money to incur for capital expenditure which is hardly available for SMEs.