Challenges Faced by Small Businesses in Accessing Financial Assistance from Canadian Banks

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Table of content
Table of content..........................................................................................................................................2
A study on the problems being faced by small business while undertaking financial assistance by
Canadian banks.......................................................................................................................................3
Introduction.............................................................................................................................................3
Statement of the problem.......................................................................................................................4
Research question...................................................................................................................................4
Hypothesis...............................................................................................................................................4
Aim..........................................................................................................................................................4
Objectives................................................................................................................................................5
Primary objective.................................................................................................................................5
Secondary objective............................................................................................................................5
Literature review.....................................................................................................................................5
The feasibility of the study and explain how you can gain access to the data that you need to collect. .7
The feasibility of the research.............................................................................................................7
Method of collecting data...................................................................................................................7
The primary method of data collection...............................................................................................7
Secondary research.............................................................................................................................8
Results and discussion.............................................................................................................................8
Time frame for the research project...........................................................................................................9
References.................................................................................................................................................10
Appendix...................................................................................................................................................12

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A study on the problems being faced by small business while undertaking financial
assistance by Canadian banks
Introduction
Small businesses accounts for 60-70% for all available jobs in developed countries like Japan,
Italy and Canada. According to (Maleka, Kambuwa & Karodia, 2015). small business
approximated 420-510 million of informal and formal, micro, medium and small enterprises
located in both developed and developing states worldwide. These businesses play a key role in
the world economy since they contribute in generating jobs and employment opportunities
especially in developing countries (Humphries, Burns & Tanaka, 2015). Nevertheless, small
businesses are faced with some huge financing difficulties than large business organizations by
the fact that they access less external finances, a high cost of transactions and high-risk premium.
Every year, the owners of small businesses list the financial support as one of their key problem
affecting the future of their organizations (La Porta & Shleifer, 2014).
Almost all Canadian small business organizations depend on informal finance sources like loans,
individual financing, family and friends to run their activities. The motive for this research was
guided by the fact that there is a provision and availability of financial resources is the main
thing for the continuous growth of small businesses in Canada (du, Kocabacak & Güven, 2013).
Small business organizations require these resources to bridge the cash flow challenges in
making their investments (Vezzadini, 2017). Yet many new and small business experience
difficulties while trying to gain access to finance assistance from various Canadian banks.

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Statement of the problem
The higher variance in the survival, growth and profitability of small businesses when compared
to larger business institutions ca be credited to certain issues in financing. The challenges within
financing may differ depending on the nature of business whether a growing, a new business,
growing rapidly or slowly (Haggblade, Hazell & Reardon, 2010). Just like other states, Canada
focuses on supply and demand side. In the case of demand, commercial banks are encouraged to
offer financial support to small business organizations. The financial assistance which banks
should offer are like innovation, capital, and microfinance fund. Yet the small businesses are still
facing many constraints while trying to access the financial assistance from different banks in
Canada (Brinckmann, Grichnik & Kapsa,2010).
Research question
1. What are the problem facing the small business organizations while trying to get finance
assistance in banks of Canada?
Hypothesis
1. The small businesses face a lot of challenges while trying to seek financial support from
Canadian banks.
2. Many banks in Canada are not willing to support small enterprises.
Aim
The main purpose of this study is to investigate the challenges that are faced by small businesses
while undertaking financial assistance from banks of Canada.