Commercial Credit Relations with Small Business Entities
Abstract
This study investigates the role of small business entities in the regional economy and examines the differences between commercial and preferential lending, particularly focusing on the advantages of commercial lending and new types of lending procedures. The research aimed to analyze the contribution of small business entities to economic growth and to explore how banking services can better serve these businesses. A cross-sectional analytical approach was used, incorporating data from commercial banks, small business entities, and official statistical sources in Namangan. The study found that small businesses contribute significantly to the region’s economic development, and various lending schemes positively impact their growth. Recommendations were developed to address existing deficiencies in banking services and to improve access to financial resources for small businesses. The results emphasize the need for more inclusive lending practices and the expansion of banking services.
References
[2] Decree of the President of the Republic of Uzbekistan dated 09.06.2021 "Additional measures to increase the industrial potential of the regions" (No. PF-6244). Lex/uz
[3] М.Р. Болтабоев, М.С. Қосимова, Ш.Ж. Эргашходжаева, Б. К. Ғойибназаров, А.Н. Самадов, Р. Ходжаев. “Кичик бизнес ва тадбиркорлик” Ўқув қўлланма. Тошкент, Иқтисодиёт 2010. (7-16 сахифалар)
[4] https://gazeta.norma.uz/publish/doc/text147368_kichik_biznes_-_germaniya_iqtisodieti_mujizasi.
[5] А.А.ОМОНОВ, Т.М.ҚОРАЛИЕВ. “ПУЛ, КРЕДИТ ВА БАНКЛАР” ДАРСЛИК. ТОШКЕНТ – 2012. (181-183 сахифалар). https://library.ziyonet.uz/uzc/book/25556.
[6] А.А.ОМОНОВ, Т.М.ҚОРАЛИЕВ. “ПУЛ, КРЕДИТ ВА БАНКЛАР” ДАРСЛИК. ТОШКЕНТ – 2012. (189-190 сахифалар). https://library.ziyonet.uz/uzc/book/25556.
[7] БАНК МАРКЕТИНГИ ВА МЕНЕЖМЕНТИ. Дарслик. К.З. Хомитов, А.А. Рахимов. Тошкент – « ILM ZIYO» - 2015. (5-6 сахифалар). https://library.ziyonet.uz/uz/book/80599
[8] Y. Kryvych, T. Goncharenko (2020) “Banking strategic management and business model: bibliometric analysis” Financial Markets, Institutions and Risks, Volume 4, Issue 1. http://interfinance.tfi.uz/wp-content/uploads/2022/11/6Бекмуродова_Г.pdf (4-сахифа)
[9] Daniel, E., Wilson, H., McDonald, M. and Ward, J. (2001) Marketing Strategy in the Digital Age , Financial Times/Prentice Hall, Harlow. http://interfinance.tfi.uz/wp-content/uploads/2022/11/6Бекмуродова_Г.pdf (4-сахифа)
[10] Deighton, J. (1996) The future of interactive marketing, Harvard Business Review (November–December), 151–62. http://interfinance.tfi.uz/wp-content/uploads/2022/11/6Бекмуродова_Г.pdf (4-сахифа)
[11] https://namstat.uz/uz/qo-mita-yangiliklar/10423-namangan-viloyatida-kichik-biznez-va-xususiy-tadbirkorlikni-rivojlanishi-2. Наманган вилояти статистика бошқармаси маълумотлари.
[12] Наманган вилояти статистика бошқармаси маълумотлари. https://namstat.uz/uz/rasmiy-statistika/small-business-and-entrepreneurship-2
[13] https://daryo.uz/k/2023/02/01/ozbekistonda-2022-yilda-banklar-tomonidan-qancha-kredit-ajratilgani-malum-boldi
[14] Development of the results of the conducted survey.
[15] Author development based on statistical results of regression equation.
[16] Beck, T., Demirguc-Kunt, A., & Levine, R. (2005). SMEs, growth, and poverty: Cross-country evidence. Journal of Economic Growth, 10(3), 199-229.
[17] Ayyagari, M., Beck, T., & Demirguc-Kunt, A. (2007). Small and medium enterprises across the globe. Small Business Economics, 29(4), 415-434.
[18] Berger, A. N., & Udell, G. F. (1998). The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle. Journal of Banking & Finance, 22(6-8), 613-673.
[19] De la Torre, A., Pería, M. S. M., & Schmukler, S. L. (2010). Bank involvement with SMEs: Beyond relationship lending. Journal of Banking & Finance, 34(9), 2280-2293.
[20] Beck, T., & Demirguc-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931-2943.
[21] Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. The American Economic Review, 71(3), 393-410.
[22] Schumpeter, J. A. (1934). The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Harvard University Press.
[23] Levitsky, J. (1997). Credit guarantee schemes for SMEs: An international review. Small Enterprise Development, 8(2), 4-17.
[24] OECD. (2019). Financing SMEs and Entrepreneurs 2019: An OECD Scoreboard. OECD Publishing.
[25] Wang, Y. (2016). What are the biggest obstacles to the growth of SMEs in developing countries? An empirical evidence from an enterprise survey. Borsa Istanbul Review, 16(3), 167-176.
[26] Berger, A. N., & Udell, G. F. (2006). A more complete conceptual framework for SME finance. Journal of Banking & Finance, 30(11), 2945-2966.
[27] Kumar, A., & Francisco, M. (2005). Enterprise size, financing patterns, and credit constraints in Brazil: Analysis of data from the Investment Climate Assessment Survey. World Bank Policy Research Working Paper, 3675.
[28] Claessens, S., & Tzioumis, K. (2006). Measuring firms' access to finance. World Bank Group Financial and Private Sector Development. Working Paper.
[29] Yoshino, N., & Taghizadeh-Hesary, F. (2016). Major challenges facing small and medium-sized enterprises in Asia and solutions for mitigating them. Asian Development Bank Institute Working Paper, 564.
[30] Allen, F., Demirguc-Kunt, A., Klapper, L., & Martinez Peria, M. S. (2012). The foundations of financial inclusion: Understanding ownership and use of formal accounts. World Bank Policy Research Working Paper, 6290.
In submitting the manuscript to the Central Asian Journal of Innovations on Tourism Management and Finance, the authors certify that:
- They are authorized by their co-authors to enter into these arrangements.
- The work described has not been formally published before, except in the form of an abstract or as part of a published lecture, review, thesis, or overlay journal.
- That it is not under consideration for publication elsewhere,
- The publication has been approved by the author(s) and by responsible authorities – tacitly or explicitly – of the institutes where the work has been carried out.
- They secure the right to reproduce any material that has already been published or copyrighted elsewhere.
- They agree to the following license and copyright agreement.
License and Copyright Agreement
Authors who publish with Central Asian Journal of Innovations on Tourism Management and Finance agree to the following terms:
- Authors retain copyright and grant the Central Asian Journal of Innovations on Tourism Management and Finance right of first publication with the work simultaneously licensed under Creative Commons Attribution License (CC BY 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the Central Asian Journal of Innovations on Tourism Management and Finance published version of the work (e.g., post it to an institutional repository or edit it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.