Table 9 Reasons behind not accessing... | Emerald Publishing

Table 9

Reasons behind not accessing institutional finance (n = 62)

Reason mentioned	Frequency	Relative frequency (%)
The nature of business is such that external funding is not required	9	15
In order to avoid default and associated legal problems, the preference is to accumulate funds and invest	7	11
The process of raising institutional finance has too many hassles	10	16
Lack of appropriate collateral to pledge against borrowing	5	8
The interest rates charged by banks are beyond reach	6	10
Lack of appropriate collateral to pledge against borrowing and high-interest rates	10	16
Cashflows too uncertain to meet periodic interest payments and principal repayment	15	24
Total	62	100

Reason mentioned	Frequency	Relative frequency (%)
The nature of business is such that external funding is not required	9	15
In order to avoid default and associated legal problems, the preference is to accumulate funds and invest	7	11
The process of raising institutional finance has too many hassles	10	16
Lack of appropriate collateral to pledge against borrowing	5	8
The interest rates charged by banks are beyond reach	6	10
Lack of appropriate collateral to pledge against borrowing and high-interest rates	10	16
Cashflows too uncertain to meet periodic interest payments and principal repayment	15	24
Total	62	100

Source(s): Compiled by authors