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Agenda Research Journal

Volume no. 13 | 2020
Issue no. 1


Title
THE EFFECT OF CREDIT FINANCING ON GROWTH OF SMALL AND MEDIUM ENTERPRISES IN BATANGAS CITY
Author
Belbes, Mary Jane E., Macalinao, Brent Jansen T., Martinez, Marjorie M., and Quebrar, Andrea C.
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Abstract
This study aimed to determine the effect of credit financing on growth of small and medium enterprises (SMEs) in Batangas City which will serve as a basis for improving credit choices and financial development. The descriptive research was used in achieving the objectives of the study. The sample size used was 178 selected small enterprises and 68 selected medium enterprises in Batangas City. Random sampling was used for data gathering. The study utilized the Raosoft in computing the total number of respondents for the survey questionnaire to be distributed in small and medium enterprises. The data gathered were statistically treated through percentage, weighted mean and Pearson’s R correlation. The findings of the study revealed that the greatest number of SMEs is merchandising business. It revealed that most of the SMEs have banks as sources of credit finance. Based on the study, most of the SMEs agreed that the loan amount granted is justified based on the capacity to pay. Most of the respondents strongly agreed that the businesses continue to expand. Moreover, the researchers conclude that there is a significant effect of credit financing to the growth of SMEs in terms of loan term and loan interest. The researchers created a proposed financial development plan for small and medium enterprises in Batangas City.
Keywords
credit financing, growth, small and medium enterprises, Batangas City, merchandising business, loan term, loan interest
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