Analyzing Financial Assistance Problems for Canadian SMBs

This report delves into the financial challenges encountered by small businesses in Canada when seeking financial assistance from Canadian banks. It begins by highlighting the difficulties small businesses face in securing capital, particularly in a competitive market. The research explores the various financial assistance options available, including loans and equity financing, while also identifying the problems associated with each. The study utilizes interviews with managers, employees, and owners of small businesses to understand their perspectives on issues such as the time and effort required to find investors, the imposition of ownership or control by investors, and concerns about equity financing. The report investigates the vital issues related to small business operations while gathering financial assistance, approaches to overcome these challenges, and the likely effects of these issues. The findings emphasize the need for the development of a business angel network to connect potential investors with small businesses, along with recommendations to improve financial situations. The report ultimately provides a comprehensive analysis of the problems faced by Canadian small businesses in obtaining financial assistance and suggests potential solutions.

PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL
ASSISTANCE
Small Businesses in Canada Face Problems While Undertaking Financial Assistance from
Canadians Banks

1PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
Executive Summary
Canadian Banks are greatly well capitalised in comparison to their peers existing in other nations
and are also better equipped to loan money to a worthy small organisation than they have been
over the past years.
The research question developed intended to explain various issues that are faced by the small
business organisations operating in Canada at the time of undertaking financial assistance from
the Canadian banks.
The individual interview method has been supportive in consideration to the fact that through
following non-probability convenient sampling technique, the managers, employees along with
the small business owners were involved within the interview session.
The research revealed that while the small businesses consider obtaining equity finances from
the Canadian banks they are concerned regarding challenges regarding the time and effort
needed to find the right investor for the business. The investors also tend to impose some
ownerships or controlling interest on the small businesses along with taking part in the business
decisions. This can turn out to be a concern for these Canadian small scale companies.
Based on the study findings recommendations are offered to the small businesses of Canada
regarding development of business angel network that can bring the potential investors along
with the small businesses together with additional benefits. Development of such business angel
networking might have relevant experience along with expertise that can offer advantages in
several small company situations.

2PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
Acknowledgement
I feel great pleasure in acknowledging the assistance along with contributions of several other
individuals in contribution to the success of the dissertation. Firstly, I would prefer to thank my
supervisor for her support, ideas along with feedbacks at the time of the proceeds in completing
this dissertation. Devoid of her support and guidance, this dissertation cannot be accomplished
within time. Finally, I would also like to express my gratitude to my peers for their total support
along with encouragement.

3PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
Table of Contents
Chapter 1: Introduction....................................................................................................................6
1.1 Research Background.......................................................................................................6
1.2. Research Problem and Significance.....................................................................................7
1.3. Research Aim and Objectives...............................................................................................8
1.4. Research Questions...............................................................................................................8
Chapter 2: Literature Review.........................................................................................................10
2.1. Introduction.........................................................................................................................10
2.2. Financial Assistances offered By Canadian Banks............................................................10
2.3. Financial Problems Dealt by Small Businesses..................................................................11
2.4. Challenges and Problems Dealt by Small Companies in Attaining Financial Assistance
from Canadian Banks................................................................................................................14
2.5. Solutions to Businesses faced while Undertaking Financial Assistance............................16
2.6. Research Gap......................................................................................................................18
2.7. Theoretical Framework and Hypotheses............................................................................19
Chapter 3: Research Methodology................................................................................................21
3.1. Introduction.........................................................................................................................21
3.2. Research Design, Philosophy and Approach......................................................................21
3.3. Participants and Data Sources............................................................................................22
3.4. Researchers Role................................................................................................................23

4PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
3.5. Data Gathering Techniques................................................................................................23
3.6. Data Analysis Method........................................................................................................24
3.7. Trustworthiness of the Method...........................................................................................25
3.8. Summary.............................................................................................................................25
Chapter 4: Presentation of Results.................................................................................................27
4.1. Discussion of Interview with Manager...............................................................................34
4.2. Discussion of Interview with Employee 1..........................................................................34
4.3. Discussion of Interview with Employee 2..........................................................................35
4.4. Discussion of Interview with Owner 1...............................................................................35
4.5. Discussion of Interview with Owner 2...............................................................................35
Chapter 5: Analysis of Data...........................................................................................................36
5.1. Analysis of the Interview Responses Provided by Managers, Employees and Small
Business Owners on Qualitative Questions...............................................................................36
5.1.1. Response for Interview Question 1..............................................................................36
5.1.2. Response for Interview Question 2..............................................................................37
5.1.3. Response for Interview Question 3..............................................................................38
5.2. Findings on Research Question 1: What are the vital issues related with the small
businesses operations while gathering financial assistance from the banks existing within
Canada?......................................................................................................................................39
5.3. Findings on Research Question 2: What are several approaches through which such
challenges can be dealt with in order to obtain a better financial situation?.............................42

5PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
5.4. Findings on Research Question 3: What are the likely effects of such issues that take place
at the time of attaining financial assistance from the banks within Canada?............................44
Chapter 6: Conclusion and Recommendations..............................................................................46
6.1. Conclusion..........................................................................................................................46
6.2. Recommendations and Future Research.............................................................................49
References......................................................................................................................................53
Appendices....................................................................................................................................60
Appendix 1: Ethics Application Form.......................................................................................60
Appendix 2: Banks Offering Financial Assistance to Small and Large Businesses in Canada 63
Appendix 3: Small Business Lending by Canadian Banks over Years.....................................64
Appendix 4: Interview Transcript for Manager.........................................................................64
Appendix 5: Interview Transcript for Employee 1....................................................................65
Appendix 6: Interview Transcript for Employee 2....................................................................66
Appendix 7: Interview Transcript for Owner 1.........................................................................67
Appendix 8: Interview Transcript for Owner 2.........................................................................68

6PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
Chapter 1: Introduction
1.1 Research Background
In the era of highly competitive business environment, it has been revealed that when the
small businesses aim to address needs of a market niche, the necessary amount of capital is quite
complex to attain that can further impact the ability to undertake a project in an effective manner
(Alvesson and Sköldberg 2017). Despite the fact that the banks in Canada have offered sufficient
financial assistance through offering loans to the organisations, still there might be certain
uncertainties related with poor sourcing of credit by the smaller organizations. This can also
impact their capability to sustain within the competitive business surrounding (Bebchuk, Cohen
and Hirst 2017).Canadian Banks are greatly well capitalised in comparison to their peers existing
in other nations and are also better equipped to loan money to a worthy small organisation than
they have been over the past years (Alvesson and Sköldberg 2017). It has also been observed that
the financial position for all the Canadian small businesses is also observed to be improving.
Considering same, it has also been evident that the business insolvencies are decreased by 17%
in the year end in comparison to the previous year (Bebchuk, Cohen and Hirst 2017).More than
70% of the small business owners are evidenced to fail in their 10th year of business and around
20% of small business fail in the first year of their business surrounding (Bebchuk, Cohen and
Hirst 2017). Certain small businesses in Canada are likely to face difficulties whole seeking
funds from the banks existing within Canada. This is evident for the reason that while the
established businesses find it to be considerably simple to raise finance, the small companies
operating within Canada find it greatly difficult in raising finance for all their operational
activities. For instance, consumer service applications such as Zebdesk faced the issue of initial

7PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
undercapitalisation. There are several factors that are responsible for the financial problems
faced by the small businesses in their attempt to raise finance that includes risk, lack of credit
sourcing, absence of enough press coverage, intertwined position, maturity along with interest
rated bias (Becherer and Helms 2016). Certain issues related with equity finance such as absence
of market trust, equity space and absence of exit route causes problems for the small businesses
to attain adequate finds for their business operations for the Canadian banks (Bresler. and Stake
2017). The study is intended to analysevarious issues that are faced by the small business
organisations operating in Canada at the time of undertaking financial support from Canadian
banks.
1.2. Research Problem and Significance
The research subject was analysed because of the associated advantages that can be
obtained from the small businesses along with the overall industry. This research has
significance in identifying several issues which can take place at the time of attaining financial
assistance in the form of loans and financial advices from the banks existing within
Canada(Brigham, Nason and Gessaroli 2016). However, these banks in Canada offer financial
support to large as well as small businesses with the objective of attaining a huge amount of
interest and profit from them. Focused on such research problem, the research has increased
significance in analysing several concerns related with the management of financial support from
the Canadian banks (Brigham, Ehrhardt, Nason and Gessaroli 2016). This can also therefore
enable all the precautionary measures in dealing with the issues faced at the time of gathering
financial support from the banks operating within Canada.
The significance of the research subject is to attain the study objectives of knowledge
acquisition and with the objective of developing solutions required to deal with the financial

8PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
concerns which might be faced by the small businesses at the time of attaining help from the
banks within Canada. In consideration to the financial concerns dealt by the small businesses, it
is vital to take into consideration that there are several important aspects necessary in facilitating
better contributions to the research related factors. Furthermore, the current research is also
focused on recommending solutions for addressing the financial needs of the small businesses.
1.3. Research Aim and Objectives
The aim of the current study is to evaluate major challenges dealt by small business
organisations while taking financial support from Canadian banks. The research objectives that
will be attained after completion of the study are indicated under:
 To recognise range of vital issues elated with the small businesses operations while
gathering financial support from the banks existing within Canada
 To analyse several approaches through which such challenges can be dealt with in order
ensure better financial situation
 To evaluate effects of issues that taking place at the time of attaining financial assistance
from the banks within Canada
 To recommend important measures in dealing with issues taking place at the time of
taking financial assistance from the banks in Canada.
1.4. Research Questions
The research questions to be answered by successful accomplishment of the research are
formulated below:
 What are the vital issues related with the small businesses operations while gathering
financial assistance from the banks existing within Canada?

9PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
 What are several approaches through which such challenges can be dealt with in attaining
better financial position?
 What are likely effects of such issues that take place at the time of attaining financial
assistance from the banks within Canada?
 What are recommended measures in dealing with issues taking place at the time of taking
financial support from the Canadian banks?

10PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
Chapter 2: Literature Review
2.1. Introduction
The literature review chapter considered analysis and existing arguments in the past
researches on research subject that analysed the challenges faced by small businesses in Canada
in obtaining financial assistance from the banks existing within Canada (Calomiris and Haber
2015). This chapter also focussed on analysing the findings from various past researches
regarding financial assistance offered by the Canadian banks, financial funds attainment
problems faced by them from domestic banks and solutions offered to businesses by several
researchers on best ways to attain funds for their small businesses.
2.2. Financial Assistances offered By Canadian Banks
Campbell and Cartwright (2017) revealed in their research that business owners in
Canada generally report that attaining enough financing for their businesses turns out to be
highly challenging factor of operating business. There are several government as well as private
sector financing sources existing within Canada that can facilitate large and small businesses to
develop their businesses. This can include business loans, capital, indigenous entrepreneur loan,
new Canadian entrepreneur loan, small businesses loan for existing companies, start-up
financing, farm credit Canada for various loans and lending options and the agricultural loans act
program (Campbell 2017). Campbell and Cartwright (2017) stated that the large and small
businesses of Canada also have access to private setup financing for their business operations.
For instance, Canada’s major financial institutions like the banks, cooperatives and the credit
unions. Based on the type of businesses these companies intend to start, they have the access to
secure venture capital or financing from the Canadian angel investors. Campbell (2017) added

11PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
that certain other sources of the private sector financing can be in debt and equity financing form
available from the financing institutions for addressing business needs of the small and large
businesses in Canada. The researcher also revealed that before attaining any financial assistance
or loan from the Canadian banks, the banker evaluate whether the small or large scale
organization represents an acceptable risk for the and whether will be capable to pay off their
obligations against the loan. Such risk assessment carried out by the Canadian banks also
impacts the rate of interest the companies pay on loan (Crane et al. 2019).
Cunningham, Gök and Larédo (2016) explained that it also determines whether the
business will get their desired financial assistances or loan along with the lending terms and
conditions. A banker of the Canadian financial institutions will be quite hesitant in lending
financial assistance in case the organisations assets along with performance signifies as
inacceptable risk level. Once the loans get approved by the Canadian financial institutions they
consider carrying out yearly reviews in order to attract the loan's performance in a situation
where the loan performance on a Canadian business risk turns out to be unacceptable, the
bankers are likely to demand for any additional collateral security or demand complete
repayment.
2.3. Financial Problems Dealt by Small Businesses
As indicated within the research of Dumay and Cai (2015) it was gathered that small
business companies operate with a promise and in a situation the leader or manager of the
company has a sound mission and vision then the activities turn out to be simpler. This further
promotes innovation along with suitable project management techniques. These researchers also
confirmed that in order to ensure management of an exceptional fraction of working capital
along with enough financial resources, the small businesses requires to secure the initial funding

12PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
and along with that must also consider carrying out proper planning in preventing the unexpected
expenses and ensuring prevention of any delay which might be faced in management of the
business.
Researchers namely, Engert and Fung (2017) has also explained that there are certain
major concerns dealt by the small businesses with an intention of attaining growth or expansion
which has further increased difficulty in securing the business funding. These researchers also
indicated that just implementing such idea might not be highly efficient in ensuring success. Past
researches also revealed that absence of suitable planning might result in certain difficulties for
all the small businesses in attaining support for obtaining start-up costs operations cost, tax along
with expenditures related with the emergency conditions.Eniola and Entebang (2015) also
provided an argument that there are several concerns that take place in the form of unexpected
expenditures which are not taken into consideration which might also have resulted in numerous
complexities at the time of bill payments and development of payroll. These researchers also
confirmed that the small businesses face the difficulties related with offering a huge amount of
wages and other benefits to all their employees which that can further result in increased
financial stress which can negatively affect the performance of the employees.
Moreover, research conducted by Erbenova et al. (2016) revealed that small businesses in
Canada are at an increased disadvantageous situation in comparison to the larger and established
organisations in the nation. It has also been revealed that 29% of the small businesses in Canada
fail because they eventually run out of capital and such findings confirm that access to the right
funding solution is vital in ensuring successful business growth (Fraser, Bhaumik, and Wright
2015). Glover and Kusterer (2016) added that attaining financial assistance from alternative
lenders in Canada mean having to pay an increased rate of interest that can cause financial

13PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
concerns for the companies in supporting business operations smoothly. Another financial
problem that is observed to be faced by small businesses in operating profitable business in
Canada is debt repayment as many small business owners lack enough capital to establish their
businesses. These researchers also explained that in order to address such financial problems, the
small businesses look for traditional loan options or alternative financing solutions. Kusterer
(2016) conformed that as the small business is new to the market it is difficult for them to
determine the performance of their products and services within the market. Even if the company
has high potential, sales are quite slow in the initial months of their operations. For this reason
the small business owners in Canada might find themselves to be struggling in ensuring debt
repayment as these companies strive to maintain their market stability (Tucker 2016).
Research carried out by Goldberg et al. (2017) confirmed that the small businesses in
Canada face issues related with day-to-day money management as just 40% of these companies
perceive that they are knowledgeable on finance. Lack of knowledge regarding the effective
ways to ensure money management increases difficulty for the business owners in attaining
financial assistance or funds from the Canadian banks. These researchers also revealed that the
Canadian small businesses lack experience related with managing invoices, receipts along with
maintaining track of expenses which results in delayed payments, inaccurate calculation and
incorrect recordings. Moreover, in the study of Goss (2015) it was evidenced that over the years,
small business owners in Canada licensed access to business funds as one of their greatest
concerns indicating doubts regarding the future success of the business. While it is not deemed to
be government’s responsibility to ensure small business success, it is deemed to be their
accountability to ensure that innovative and the growing small scale companies attain necessary
capital access along with suitable infrastructure which can accelerate their company’s growth.

14PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
Gozzi and Schmukler (2016) added that several small businesses of Canada particularly
belonging to the advanced sectors such as agriculture, manufacturing and food processing tends
to overlook several beneficial funding opportunities that are assessable by means of prudential as
well as federal government levels. It has also been confirmed that a small scale business which is
determined to address obstacles in future business growth focuses on leveraging the government
loans and grants as an attempt of obtaining successful financial assistance (He et al. 2017). To
deal with the financial problems faced by these small businesses, several small business loans
and grants programs are present which supports these small scale companies to expand and take
part in activities that are gathered to enhance global competitiveness.
2.4. Challenges and Problems Dealt by Small Companies in Attaining Financial Assistance
from Canadian Banks
As explained by the Hillary (2017), in order to deal with the financial concerns,
managing suitable budgeting activities along with ensuing maintenance of better financial
situation, the small businesses often wanted financial support along with assistance from the
banks existing within Canada. The financial aspects are deemed to be the lifeline of the small
businesses and for this reason the dent along with the equity finance are deemed to be vital
sources of finance employed by the organisation. IbnBoamah and Alam (2016) stated that at the
time of seeking the financial assistance the vital concerns faced by the small business companies
within Canada also encompass uncertainties taking place from the poor accessibility to the
necessary funds for managing the expansion of business. These researchers also highlighted that
absence of suitable credit scoring is one of vital concerns which is generally neglected by the
small businesses. In addition, this also leads to the uncertainties which makes the banks within

15PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
Canada requires all its important consumers to deliver a suitable credit scoring relied on the
decisions made for managing the exposures.
Research carried out by Johnson (2018) clarified that the banks in Canada are not that
much interested to improve the credit facility devoid of making any suitable estimation of certain
collateral increment from the small business perspective that might not be ready to make any
increment thereafter. There are certain concerns like the maturity gap that have taken place
because of the difference among the small businesses and the Canadian banks in consideration to
the maturity if assets and liabilities. Kariv and Coleman (2015) added to this fact and stated that
the small businesses in Canada dealt with issues and challenges related with attaining short and
medium term loans that further resulted in attaining the loans which were not secured by means
of mortgages against their property. These researchers also revealed that as the banks in Canada
attains a better return rate for the loans granted by them, the banks are likely to set an increased
rate to obtain personal guarantee from these small business owners while such rate of interest is
quite low fir the larger organisations operating in Canada. Kochenkova, Grimaldi and Munari
(2016) revealed that the stock market in Canada might also not have an exceptional confidence
on the operations of the small businesses that can also lead to decreased value creation along
with increasing several issues and complexities for them while acquiring equity finance.
Based on the finding of Lee, Wall and Kovacs (2015) it has been observed in a survey
press that maximum number of people perceived the fact that certain absence of the financing
options tuned out to be among the major challenge that is greatly faced by all the small
businesses operating in Canada. Multiple issues related with attaining financial assistance from
Canadian banks are diverse and also encompass the factors that combine for take form of a
financial management long with condition of the small business. These researchers also revealed

16PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
that such financial assistance issues were majorly dealt with for the reason that the small
businesses attempted to acquire bank financing at the time of the recession. Mason, Botelho and
Harrison (2016) revealed that in order to derive better solutions and ensuring addressing such
issues in a better manner, the Government of Canada has also introduced certain effective new
loan guarantee schemes that have the capability to deal with such financing situations. Moreover,
it can also ensure creation of broad opportunities for small businesses operating within Canada to
attain financial assistance devoid of any hurdles.
It has also been argued by Massaro et al. (2016) that there are certain major concerns that
has affected the small businesses of Canada to obtain financial assistance from the banks within
Canada included existence of poor amount of collateral, absence of maintaining better track
records long with maintainable of poor return rate offered to the banks by small businesses in
comparison to large business companies. Researchers namely McCann and Ortega-Argilés
(2016) indicated that the small businesses operating within Canada generally deal with certain
other issues that include facing a higher interest rate, slow payment, extra charges from banks as
well as poor financing. According to the research carried out by Owen and Mason (2017) it has
been revealed that the Canadian banks are likely to treat the businesses distinctly relied on the
sizes due to a good return rate which can be attained by the large businesses that is even more in
comparison to the smaller businesses. Such concerns related with gathering financial assistance
from Canadian banks takes place from poor services, strict terms of payment and conditions
from the suppliers along with extremely high pressure on the prices and slower payment given
by the consumers within Canada.

17PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
2.5. Solutions to Businesses faced while Undertaking Financial Assistance
Based on the research carried out by Paschen (2017) it has been elucidated that in order
to improve the business performance of small companies solutions are needed against several
obligations along with concerns related with the financial issues and problems dealt with at the
time of undertaking financial assistance from the Canadian banks. The major causes encompass
insufficient capital or absence of capitalisation or even other issues related with the business
financing. For instance, SBA or Small Business Association makes an effort in analysing and
revealing certain factors related with the causes of financial issues with great focus on poor
capital structure, sense of reserve funding and the issue of overspending. Pellegrino and Savona
(2017) explained in their research that the SBA is capable of offering better assistance as well as
help in the financial advice form to the owners as well as the small businesses and then
considering making certain strategic plans in better management of the small businesses easily.
At the same time it is also beneficial to attain advantages from the resources the financial as well
as the human resources for addressing the small and the medium sized business’s needs. This
might also turn out to be efficient for making the funding attained from Canadian banks to get
extended that can also ensure small business within the nation is acquiring adequate working
capital in order to sustain within a competitive business surrounding.
In contrast, researchers namely Peters and Panayi (2016) indicated that dealing with the
financial issues can turn out to be advantageous for reviewing, analyses, revamping as well as for
the purpose of carrying out research prior to the development of the business plan for the
businesses that are generally small sized while gathering financial assistance from the banks that
particularly operate within Canada. In certain situations where the expenses experienced by the
organisation and the business plan of the company are not that efficient than the small businesses

18PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
feel the need to implement certain changes that further allows the business owners to attain high
loans with great ease along with attaining certain grant which have been developed for offering
these businesses with great opportunities of growth. Pilbeam (2018) elucidated that the small
business owners within Canada can play a great role in the training seminars as well as within
the developmental sessions in order to offer better financial assistance. Whereas, the angel
invests and the venture capitalists are offered with exceptional roles and responsibilities of
accepting risks and offering funding support to all owners of small business in sustaining the
consistency in the regular operations of the businesses processes and operations.
Quarter, Mook and Armstrong (2017) stated that this is deemed to be important in
improving the validity and reliability the business plan prepared by these Canadian small
businesses in sustaining consistency within the regularity of businesses process and operations
that is important for dealing with financial concerns experienced at the time of undertaking
required financial funds from the Canadian banks. These researchers have also observed in their
study that the Canadian banks are likely to be inclined towards the large business operating
within Canada for the reason that they attain an increased amount of profit which can further be
derived along with an increased interest rate. Rostamkalaei and Freel (2017) added that there
exist several non-profit companies in Canada as well as business service companies that provides
free funding to be a planning tool for cash flow. Through attaining government grants along with
business related loans they attain increased access to enhanced cash, improving strategic plans
implementation along with imposing the capabilities of business growth (Rugman and Verbeke
2017). Collateral is asset of exceptional value and in case the small companies fail with financial
troubles in gathering financial assistance these companies can attain funds from banks through

19PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
keeping collateral with the bank in the form of land, machinery, personal assets or commercial
vehicles.
2.6. Research Gap
From analysing past researches on the issues dealt by Canadian small businesses in
attaining financial assistance from the banks within the nation, it has been gathered that there
exist a research gap in the existing literature because of lack of peer reviewed articles that at
times included improper information and data which might further impact the successful
management of research (Shaw and Barry 2015). The past researches majorly focussed on
analysing three major challenges that were issues dealt by Canadian small businesses at the time
of undertaking financial assistance from banks within the nation. For this reason, this can be
considered as the research gap gathered from the literature review section of the study (Snyder,
Mathers and Crooks 2016).
In consideration to the identified research gap within the literature review part of this
research, the current study has focussed on gathering relevant data from several secondary
sources that supported in collecting vast knowledge and information regarding the research
subject. This has not only contributed to the significance of the current study but has also
facilitated the researcher in understanding the management of small businesses (Ughetto,
Skeleton and Cowling 2017).
2.7. Theoretical Framework and Hypotheses
The theoretical framework that has been developed for attaining guidance on successful
completion of the report is indicated below. This framework indicates that sustained competitive

20PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
advantages, working capital along with improved business performance of the small scale
companies are impacted by financial assistance attained from Canadian banks.
Figure 1: Theoretical Framework
(Source: Authors Note)
The research hypotheses that have been tested through completion of the recent study are
mentioned below:
 H1: Problems related with attaining financial assistance from banks negatively impacts
functioning of the small scale companies in Canada
 H0: Problems related with attaining financial assistance from banks do not negatively
impact functioning of the small scale companies in Canada
Financial
Assistance
from
Canadian
Banks
Improved
Working
Capital
Sustained
Competitive
Advantages
Improved
Business
Performance

21PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE

22PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
Chapter 3: Research Methodology
3.1. Introduction
The third chapter elaborates the suitable research methodology which has been employed
by the researcher in selecting suitable study approaches, philosophy, design, sampling and
strategies in attaining suitable study findings. Suitability of gathered responses from the
interview is greatly dependent on selected research methodology that has been thoroughly
followed by the researcher. In addition, selecting appropriate research methodology has also
supported the researcher in attaining effective opportunities that increases research findings
authenticity. Such revelations have enabled the researcher in following a specific path following
which authenticity and validity of the research results has been ensured (Sekara and Bougie
2016).
3.2. Research Design, Philosophy and Approach
The research design selected in guiding the current research towards attaining a particular
goal relied on the research objectives is descriptive. This research design was chosen for the
reason that it has facilitated the researcher in exploring and explaining issues related with
attaining financial assistance from the Canadian banks. This research design focussed on
developing recommendations, which were helpful in addressing the identified research problem
(Sekara and Bougie 2016). Moreover, descriptive research design offered researchers with
exceptional opportunities in broadening the understanding and knowledge base on problems
faced by small businesses in gathering financial funds. The research philosophy that was
employed in this study is interpretive through which suitable responses were gathered from
participants. This research philosophy is considered to be justified in this study as it is greatly

23PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
focuses on understanding of the experiences along with recognition of the human beings
participated within the research. Moreover, deductive research approach was chosen in carrying
out the current research as this study findings were gathered through scrutinising the existing
theories and models by seeking support from the collected data (Sekara and Bougie 2016). In
addition, this research approach is deemed justified for the reason that it supported the researcher
in evaluating the past trends, proven facts and the existing models that guided attainment of
actual study findings. This research approach is considered to be justified in this study as it is
elucidated by Sekara and Bougie 2016) that this approach focuses on exploring a known theory
and testing that such theories are valid in certain circumstances.
3.3. Participants and Data Sources
The sampling technique that was employed in this research includes probability sampling
approach. Simple random probability sampling technique was employed following which the
participants for interview was selected. This sampling technique was employed as it offered
equal chances to all the participants from the overall population of all the small businesses
operating within Canada to get selected in the study. The selected population included
employees’ managers and owners of small scale companies in the nation among them the
employees and managers that are retired or have currently left the companies are excluded from
the population. These participants are randomly chosen for carrying out the qualitative research
analysis. The data along with relevant information has been attained in the form of responses as
well as opinions gathered from a manager, small business owners and employees that were
considered as a part of the interview session while conducting the research (Sekara and Bougie
2016). The individual interview method has been supportive in consideration to the fact that
through following non-probability convenient sampling technique, the managers, employees

24PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
along with the small business owners were involved within the interview session. This has
further facilitated the researcher in attaining reliable opinions and responses that is deemed as
qualitative data in conducted study along with ensuring data collection in an effective manner.
3.4. Researchers Role
In consideration to objective of the research, researcher has considered several
perceptions along with experiences related with the top management of the small businesses that
have been subjected to the financial issues and risks with the financial support and help gathered
from Canadian Banks. The researcher also has the role of selecting the suitable methodology that
was relied on qualitative data and for this reason several factors has also been considered that
encompass employee engagement, social support, relations among the organisational staff along
with several other factors related with the qualitative research data and information (Sekara and
Bougie 2016). The researcher has also considered analysis of all various facts, information along
with data that was relied on the human observations, analysis along with data and interview
interpretation. Through following such research methodology the researcher has attained better
assistance to carry out research along with analysing gathered data in better manner (Sekara and
Bougie 2016). Following the selected research methodology, the researcher had the role in the
current research to make sure that the qualitative research methodology was employed with
purpose of qualitative data collection as well as its analysis along with making sure that reliable
ad valid outcomes are attained from completion of the research.
3.5. Data Gathering Techniques
The data collection in the current research of analysing the issues dealt by the small
businesses of Canada in attaining financial assistance from Canadian banks encompassed
collecting qualitative data and information. Gathering suitable qualitative data has been possible

25PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
through carrying out interview with the managers of the Canadian small businesses which
demanded financial assistance from the banks in the nation. For the current research, secondary
data and information collection has been gathered through evaluating the secondary data sources
encompassing the books, articles, journals, documents and newspapers which contained
authentic information regarding the subject of research (Sekara and Bougie 2016). The
researcher in this study has also ensured to consider proper structuring of the qualitative research
and the questions are segmented in a manner that the managers found it simple to answer them
devoid of any biasness. It is also vital to consider that none of these participants are forced and
the interviews must be fixed as per their convenient time and schedule. The relevant data and
information must be collected and then evaluated for suitable research results interpretation in an
appropriate manner (Bougie 2016). Certain close-ended questions were asked to the participants
in order to attain detailed information from them regarding questions on financial support
gathered from banks within Canada enhance the functioning along with the overall capability.
3.6. Data Analysis Method
In the current research of analysing the problems faced by the small businesses in Canada
for attaining financial assistance from the Canadian banks, qualitative data analysis method has
been employed in analysing his interview data collected from the managers of the Canadian
banks along with the small business owners in Canada based on non-probability convenient
sampling technique (Storey, 2016). The researcher has also selected suitable time where the
managers and the selected small business owners of Canada make time out from their busy
schedule to take part in the interview process that can be employed in the qualitative data
analysis in this study. 5 managers and small business owners along 5 employees were selected
for gathering their opinions and responses which was further used in qualitative data analysis

26PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
(Silverman 2016). The analysis of gathered qualitative data was also analysed through
considering presenting of the transcripts and also through representing all the gathered responses
from the interview participants in a format of “question-answer” for making it easily
understandable.
3.7. Trustworthiness of the Method
There might be certain issues and challenges associated with the reliability along with the
validity of the study findings because of absence of authenticity along with genuineness of the
collected data from certain information sources (Walliman 2017). In sustaining validity of study
findings, secondary sources are required to be authentic and up-to-date from which relevant data
and information has been gathered. This has also facilitated in ensuring that none of such data or
information has been collected from the unauthenticated sources and there are also certain
generalised measurements. Reliability of the research is greatly based on the coefficient relied on
the measurements along with test results that might have been possible in case the study had
employed Cronbach’s alpha or Pearson’s correlation (Taylor, Bogdan and DeVault 2015).
3.8. Summary
The third chapter elaborated suitable research methodology that has been employed by
the researcher in selecting suitable study approaches, philosophy, design, sampling and strategies
in attaining suitable study findings. The individual interview method has been supportive in
consideration to the fact that through following non-probability convenient sampling technique,
the managers, employees along with the small business owners were involved within the
interview session. The research design that was selected in guiding the current research towards
attaining a particular goal relied on the research objectives is descriptive. The research
philosophy that was employed in this study is interpretive through which suitable responses were

27PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
gathered from participants. Moreover, deductive research approach was chosen in carrying out
the current research as this study findings were gathered through scrutinising the existing
theories and models by seeking support from the collected data. The analysis of gathered
qualitative data was also analysed through considering presenting of the transcripts and also
through representing all the gathered responses from the interview participants in a format of
“question-answer” for making it easily understandable.

28PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
Chapter 4: Presentation of Results
Relevant data as well as information in carrying out the qualitative data analysis was
gathered through interview based on which content analysis was carried out relied on the
descriptive and interpretive processes (Wiek and Lang 2016). Such narrative analysis of the data
gathered through interview is relied on the formation of stories relied on the experiences of the
managers that is represented through opinions and responses to questions asked at the time of the
interview session.
Qualitative research
questions
Summary of Answers
Provided by
Managers, employees
and Small Business
Owners
Vital keywords
What is your opinion
regarding the fact that
Canadian banks tends
to expect a good return
rate because of which
they are likely to be
greatly inclined
towards a huge sized
businesses rather than
the small businesses?
Definitely yes for the
reason that the large
businesses offer
exceptional returns for
the financial assistance
offered by the banks
existing within
Canada.
Huge businesses and
the Canadian banks

29PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
Can financial
assistance gathered
from Canadian banks
enhance the
functioning along with
the overall capability
to sustain within the
competitive business
surrounding for the
small businesses?
Yes, the financial
assistance must
enhance the working
capital along with
improving the
functioning of the
businesses. This also
further facilities in
improving the business
performance to a great
extent
Sustained competitive
advantages, working
capital along with
business performance
What are the vital
financial concerns that
are dealt by small
businesses at time of
undertaking financial
assistance from the
banks within Canada?
The vital financial
concerns encompass
poor accessibility to
the business funds
along with the
unexpected expenses.
Attaining assistance
from the Canadian
banks, financial
concerns and absence
of working capital
Table 1: Interview with Manager
(Source: Authors Note)
Qualitative research Summary of Answers Vital keywords

30PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
questions Provided by Manager
What is your opinion
regarding the fact that
Canadian banks tends
to expect a good return
rate because of which
they are likely to be
greatly inclined
towards a huge sized
businesses rather than
the small businesses?
Yes, because the large
businesses have
necessary collaterals
employing which they
have the ability to
repay the loans take
from the banks existing
within Canada.
Huge businesses and
the Canadian banks
Can the financial
assistance gathered
from the banks in
Canada enhance the
functioning along with
the overall capability
to sustain within the
competitive business
surrounding for the
small businesses?
Yes, the financial
assistance enhances the
functioning of the
businesses as bank
loans can provide fixed
capital investment and
necessary working
capital for their initial
business operations
Sustained competitive
advantages, working
capital along with
business performance
What are the vital
financial concerns that
The vital financial
concerns include lack
Attaining assistance
from the Canadian

31PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
are dealt by small
businesses at time of
undertaking financial
assistance from the
banks within Canada?
of collateral attaining
loans with high interest
rates and lack of
accurate
documentation
banks, financial
concerns and absence
of working capital
Table 2: Interview with Employee 1
(Source: Authors Note)
Qualitative research
questions
Summary of Answers
Provided by employee
2
Vital keywords
What is your opinion
regarding the fact that
Canadian banks tends
to expect a good return
rate because of which
they are likely to be
greatly inclined
towards a huge sized
businesses rather than
the small businesses?
I can agree with the
statement for the
reason that the large
businesses have the
capability to pay the
bank loans ensured by
their consistent cash
flow situation
Small scale businesses
Can the financial I agree with the fact as Enhanced business

32PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
assistance gathered
from the banks in
Canada enhance the
functioning along with
the overall capability
to sustain within the
competitive business
surrounding for the
small businesses?
the financial assistance
gathered from the
Canadian banks to
attain enough capital in
supporting their
business growth and
supporting their
inventory purchase
programs.
functioning
What are the vital
financial concerns that
are dealt by small
businesses at time of
undertaking financial
assistance from the
banks within Canada?
I believe that financial
concerns faced by
Canadian small
businesses include
their low productive
operations history and
lack of personal
guarantees to attain
loans
Poor accessibility to
business funds
Table 3: Interview with Employee 2
(Source: Authors Note)
Qualitative research Summary of Answers Vital keywords

33PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
questions Provided by Small
Business Owner 1
What is your opinion
regarding the fact that
Canadian banks tends
to expect a good return
rate because of which
they are likely to be
greatly inclined
towards a huge sized
businesses rather than
the small businesses?
I believe this can be
the scenario as the
large businesses offer
exceptional returns for
their gathered loan
amount from banks.
Financial assistance
Can the financial
assistance gathered
from the banks in
Canada enhance the
functioning along with
the overall capability
to sustain within the
competitive business
surrounding for the
small businesses?
I agree as the financial
assistance can support
small businesses in
improving the business
performance to a great
extent through
representing its
accumulated wealth of
assets owned by the
companies
Small business
competitiveness
What are the vital I perceive that the Business funds

34PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
financial concerns
which are dealt by the
small businesses at
time of undertaking
financial assistance
from the banks within
Canada?
financial issues faced
by small businesses in
acquiring bank loans
include their
unpredictable future
revenue and cash flow
Table 4: Interview with Business Owner 1
(Source: Authors Note)
Qualitative research
questions
Summary of Answers
Provided by Small
Business Owner 2
Vital keywords
What is your opinion
regarding the fact that
Canadian banks tends
to expect a good return
rate because of which
they are likely to be
greatly inclined
towards a huge sized
businesses rather than
the small businesses?
I agree with the fact as
the large businesses in
Canada have the
potential to pay back
the bank loans as they
have sufficient credit
to address debt
obligations
Financial assistance
from Canadian Banks
Can the financial I have agreed with the Business performance

35PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
assistance gathered
from the banks in
Canada enhance the
functioning along with
the overall capability
to sustain within the
competitive business
surrounding for the
small businesses?
fact that the financial
assistance that is
attained by the
Canadian small
business will be used
for purchasing
necessary machineries
and for supporting all
their initial investments
for deriving profits.
of small companies
What are the vital
financial concerns
which are dealt by the
small businesses at
time of undertaking
financial assistance
from the banks within
Canada?
I can state that small
businesses in Canada
face issues in attaining
sufficient bank loans
that majorly includes
credit rationing
insufficient finance
absence of sufficient
documentation absence
of necessary collaterals
and high rates of
interest.
Financial concerns
dealt by small
businesses
Table 5: Interview with Business Owner 1

36PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
(Source: Authors Note)
4.1. Discussion of Interview with Manager
During the interview session with the manager of a small business in Canada he stated
that he believes the major issues dealt by the small businesses at the time of attaining loans from
the banks in Canada is because they do not have enough collateral based on which the banks can
accept their securities for offering them a loan. The manager also responded that the small
business intends to attain bank loans for supporting their daily activities for ensuring business
growth. The manager has also responded that the Canadian banks greatly consider offering bank
loans to established organisations in comparison to the small businesses as they can offer high
returns to the banks n return of loans attained from banks.
4.2. Discussion of Interview with Employee 1
While carrying out interview with the first employee, response has been gathered where
he stated that he believes the Canadian banks prefers offering bank loans to the large scale
companies because they have sufficient collaterals to address their debt caused from attaining
bank loans. He also responded that the small scale companies in Canada prefers acquiring bank
loans as it supports them in purchasing necessary inventory and fixed capital investments in
maintaining smooth business operations. He also responded that the small business face certain
issues in attaining bank loans as they lack sufficient collateral attaining loans face the issue of
paying high interest rates and they also lack of accurate documentation that can make their loans
granted.

37PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
4.3. Discussion of Interview with Employee 2
After carrying out interview with the second employee responses have been gathered
where he stated that he perceives that the Canadian banks prefers offering bank loans to the large
and renowned companies and puts them in first preference in comparison to the small business as
they believe these small companies cannot pay their debt with their consistent cash flow position.
He also responded that the small businesses consider acquiring bank loans in improving the
business performance to a great extent through representing its accumulated wealth of assets
owned by the companies. The employee responded in the interview session that the small
businesses deal with certain issues because of their low productive operations history and lack of
personal guarantees to attain loans.
4.4. Discussion of Interview with Owner 1
In the interview session, owner 1 responded that the banks in Canada favour the
established companies of the nation for the reason that he believes that these companies have the
capability to pay exceptional returns for the attained loans. Moreover, the small business owner
also responded that through acquiring loans from banks it will attain the ability to show its
accumulated wealth through representing its accumulated wealth of assets owned by the
companies. In addition, the owner of the small business also responded that his business faced
certain challenges in acquiring bank loans because of their unpredictable revenue and cash flow
position in future. This increased difficulties for the bank in ensuring that the business can pay
all debts efficiently and in timely manner.
4.5. Discussion of Interview with Owner 2
At the time of the interview session, owner 2 responded that the small businesses in
Canada do not get the privilege of attaining easy loans in comparison to the large scale

38PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
businesses for the reason that have the potential to pay back the bank loans as they have
sufficient credit to address debt obligations. Moreover, he has also stated that his small business
is dealing with the issue of acquiring loans from the banks as the business lacked sufficient
collateral for acquiring loan amount, faced the issue of high interest rates and also lacked
necessary documentations that they needed to show for attaining bank loans.
Chapter 5: Analysis of Data
Canada is an exceptional place small business to survive. Small businesses in Canada
serve as a considerable economic contributor to the economy of the nation. This is for the reason
that the federal government has introduced several programs along with the start-up facilities in
order to support the business growth (Wilson 2016). Despite the same, the Canadian small
business owners deal with certain issues to relate with business float. In order to deal with such
concerns, it is vital to remain calm, have well-built determination along with work in a smart
manner.
5.1. Analysis of the Interview Responses Provided by Managers, Employees and Small
Business Owners on Qualitative Questions
5.1.1. Response for Interview Question 1
On asking question regarding the fact that Canadian banks tends to expect a good return
rate because of which they are likely to be greatly inclined towards a huge sized businesses
rather than the small businesses, the managers, employees and the small business owners of
Canada responded in their interview that the Canadian banks are included towards large
businesses in offering them loans (Bebchuk, Cohen and Hirst 2017). The managers of the
Canadian banks responded in their interview that this is for the reason that the large businesses

39PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
offer exceptional returns for the financial assistance offered by the banks existing within Canada.
In addition, the employees working within banks also responded in their interview that the
Canadian banks tend to grant loans to the large companies than the small businesses as they
easily find security for their offered loan from the highly successful large businesses and assets
from their borrowers. The managers of the Canadian banks responded that they tend to be highly
hesitated in offering financial assistances to small scale businesses for their risky business
operations and poor business plan of small organizations. The finding of the research indicates
that managers of the banks further shared their viewpoint in the interview that the small
businesses seeking loans and financial assistance generally gets declined as their business plans
do not make financial sense for a bank to process a small loan. Such findings are against the
study of Bebchuk, Cohen and Hirst (2017) that they also lack sufficient collaterals and the banks
require collaterals from the companies to grant financial assistances that can act as a guarantee
that gathered loan will be repaid. However, the reason of similarities in the findings with the
literature review revelations is because it is gathered that established businesses of Canada has
sufficient collateral and well developed business plans considering which the banks prefer
offering them business funds as an attempt to contribute to the organizational growth.
5.1.2. Response for Interview Question 2
In response to the interview question regarding whether the financial support gathered
from the Canadian banks enhanced the functioning along with the overall capability to sustain
within the competitive business surrounding for the small businesses, the small business owners
responded that through attaining financial funds from the banks the small businesses attain
necessary support their strategic business plans and attaining large amount of experience and
knowledge regarding business operations. Supporting such view, the findings of the paper

40PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
revealed that the employees of the Canadian banks also responded that the financial assistance
has the capability to the working capital along with improving the functioning of the businesses.
This also further facilitates in improving the business performance to a great extent. Such
findings are in accordance with the research of Campbell and Cartwright (2017) that the small
business owners attains necessary financial funding from banks they are likely to obtain
advantages related with producing better quality goods and contributing towards the industrial
growth along with generating employment opportunities in the Canadian market. Moreover, the
small businesses owners also responded that attaining trade finances from banks in Canada can
be beneficial for them to purchase necessary materials from the overseas companies thereby
decreasing their operational expenses. Moreover, the reason of similarities in the findings with
the literature review revelations is because it is gathered that financial assistance attained from
Canadian financial institutions in the firm of debt finance can facilitate the small businesses in
retaining full control over the business operations.
5.1.3. Response for Interview Question 3
In response to the interview question on the vital financial concerns which are dealt by
the small businesses at time of attaining financial assistance from the banks within Canada, small
owners of business responded that vital financial concerns encompass poor accessibility to the
business funds along with the unexpected. Supporting such response, the findings of the research
revealed that the managers of Canadian banks also presented a viewpoint that the small
businesses tend to deal with financial concerns while attaining financial assistance from the
banks as it can turn out to be difficult to grow business because of excessive cash expense
needed for repaying the loan. Moreover, such findings remain in line with the literature review
findings that the small businesses consider obtaining equity finances from the Canadian banks

41PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
they are concerned regarding challenges regarding the time and effort needed to find the right
investor for the business. The investors also tend to impose some ownerships or controlling
interest on the small businesses along with taking part in the business decisions. This can turn
out to be a concern for these Canadian small scale companies. Moreover, the bank manager also
responded in the interview that the small businesses face issues in getting their financial
assistance granted because of their lack of consistent cash flow and steady revenue stream all
through the year. The reason of similarities in the findings with the literature review revelations
is because it is gathered that the Canadian small businesses cannot demonstrate such consistency
because of which the loans get significantly declined. Moreover after the current recession,
Canadian banks have increased their credit score because of which several small businesses in
the nation have credit scores suffering from aftermath of such financial crises.
5.2. Findings on Research Question 1: What are the vital issues related with the small
businesses operations while gathering financial assistance from the banks existing within
Canada?
There are several factors that are accountable for this situation where the small businesses
deal with. Some of such difficulties that are dealt by small businesses at the time of raising fund
are indicated below:
 Uncertainty: The revelations related with the major trouble that are faced by small
businesses at the time of attaining necessary funds are deemed to be uncertainty
related issue. Such finding is in alignment with the revelations of Ughetto, Scellato
and Cowling (2017) that small busineses generally fail because of lack of their previous
record that can be evaluated by the potential lenders in analyzing whether to offer the
small businesses with required amount of business expansion fund. Such similarities is

42PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
due to the interview findings revealed that banks tend to be highly hesitated in offering
financial assistances to small scale businesses for their risky business operations and poor
business plan of small organizations.
 Lack of credit scoring. The findings revealed that small businesses are generally
abandoned by credit scoring agencies. Such findings are in line with literature review
revelations that the scoring agencies singular act which generated a vacuum in a highly
relevant criteria necessary for banks and other financial institutions and due to related
uncertainties involved. Such similarities is because it is explained that banks takes into
consideration that their small business consumers are required to provide with necessary
credit scoring and rely their decision on such results in order to control exposure.
 Lack of sufficient press coverage. The findings revealed that as banks as well as several
other financial institutions might not attain necessary information which can offer them
with in-depth view on the activities of such small businesses. Such findings are in line
with literature review revelations that banks persuade these businesses to offer them with
a detailed business plan, the company’s asset list, and experience details of all the
managers along with directors. Such similarities is because it is explained that the small
businesses are persuaded to indicate the manners in which they are likely to offer security
for the lend amount by the banks in Canada.
 Entangled position. The findings revealed that the entangled position is employed in
order to elaborate a condition where the banks are not willing to offer credit facility
devoid of a gradual increase in the security (collateral) n from the small business which
might further be unwilling or not capable to make such increment. This finding is in line
with the findings of Ghetto, Scellato and Cowling (2017) that there are several financial

43PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
institutions which necessitates that the owners’ equity within businesses needs to be
increased prior they are granted with further credit line. Such similarities are because it is
explained that the small businesses are liable to offer a list related with company’s asset
details in order to get their loan granted.
 Maturity gap. The findings revealed that it is quite difficult for the small organisations
to attain the medium term loans because of mismatching taking place in the assets and
liabilities maturity. This finding is in line with the findings of the literature review that it
is simpler to obtain long term loans in comparison to the short and medium term loans.
Such similarities are because it is the longer term loans that are highly secured with
mortgages in accordance with the property.
 Discrimination of Interest Rate: It is gathered that banks along with financial
institutions are likely to demand personal guarantees for the small business owners and
accordingly they set the interests rates at a high point in comparison to the interest rates
that are charged from large and established organisations (Ughetto, Scellato and Cowling
2017).
 Absence of market trust: The findings revealed that the stock market might not have
sufficient confidence in the offerings of small businesses. This finding is in line with the
findings of the literature review that small businesses are likely to provide little value to it
and this is deemed to make the company to issue an increased number of shares can
further result in diluting the earnings of the small organisations. Such similarities is
because it is explained that it is complex to look for any wealthy individual that will be
willing to invest in the small businesses at the time they’re likely to be highly attractive
investment opportunities in compassion to the larger companies. There also exist lack of

44PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
exist route as the findings revealed that a vital issue with attaining equity finance is
deemed to be ability of small organisations to provide an easy exit route for the investor
that intends to sell their stock (Ughetto, Scellato and Cowling 2017).
5.3. Findings on Research Question 2: What are several approaches through which such
challenges can be dealt with in order to obtain a better financial situation?
There are several solutions that have been developed in order to deal with such issues to
attain a better financial situation.
 Bootstrapping: The research findings revealed that own funding is a long-established
along with a responsible manner to support the financial needs of small businesses. Such
findings are in line with literature review revelations of Gozzi and Schmukler (2016) that
boots trappers are risk takers as well as lateral thinkers. Such similarity is because of the
fact that it is established instead of getting involved in obtaining debt or giving up their
small company ownership they are likely to employ their own savings and get involved in
selling their assets in financing their businesses initially.
 Small business loan: A small business loan is deemed to be highly traditional manner for
the individuals taking a debt-related approach in financing their small businesses.
The findings revealed that finance from banks always remain the first priority although
they are highly conservative and realise risks of offering funds to small businesses that
have less or no collateral or credit history. This finding is in line with the findings of
Ughetto, Scellato and Cowling (2017) that this can make attaining bank loans difficult.
Such similarity is because it is gathered that small businesses must make sure that they
realise the terms along with payment commitments prior to agreeing for a loan. In
Canada, another option is “Small Business Financing Program” launched by government

45PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
that offers up to $1 million within financing in order to purchase or renovate property,
equipment or land. There are certain limitations related with working capital, labour, and
inventory along with advertising that are excluded from such initiative.
 Friends and family. The research findings revealed that in case situations from the
financial institutions are not as per their liking and they can consider borrowing money
from their relatives and peers. Such finding is in line with literature review revelations
that attaining business funds from the friends and relatives is a common manner for the
small and high-growth businesses to get established (Gozzi and Schmukler 2016).
 Angle investors. The research findings revealed that small business owners that intend to
give up some equity can consider searching for an angel investor that are full as well as
part time investors to invest their own money into the early business stage hoping for
attaining future return in case they succeed. Such findings are in line with the literature
review revelations that the small businesses might give up a part of their ownership
within the organisation to such investors, however, they generally make contacts and
experience difficult to find anywhere. Such similarities are for the reason that it is
revealed that in case the loan payments are not settled can negatively affect cash flow.
Angel List connects investors with start-ups and on the other hand, Canada’s “National
Angel Capital Organization” has a long list of potential investors.
 Crowd funding. Crowd funding is considered to be an emerging financing model, with
$133 million raised in 2015, as per the report published from “National Crowd funding
Association of Canada” (Gozzi and Schmukler 2016). The research findings revealed that
the consumer-centered organisations with added digital aspect to their services and
offerings re likely to align well with this model. Such findings are in line with literature

46PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
review revelations that the Government of Canada’s “Canada Business Network” states
that equity crowd funding is considered as an option in in British Columbia,
Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick and Nova Scotia. Such
similarities is for the reason that it is revealed that conditions are likely to be different
between provinces and rely on exactly the manners in which companies crowd funding
approach operates.
5.4. Findings on Research Question 3: What are the likely effects of such issues that take
place at the time of attaining financial assistance from the banks within Canada?
The research findings revealed that no matter, how good a small business is performing;
the companies must not be satisfied with their existing status. Rather they must ensure their
steady growth. Conversely, for several Canadian small businesses attaining enough funds for
growth has always turned out to be a greater challenge. The findings revealed that at times the
revenues attained from the consumers are not enough in attaining business sustenance and
growth over years. Such situations consider implementing relevant measures such as attaining
loans from other lenders along with banks. This finding is in line with the findings of thatKirby
and Watson (2017) that in certain cases, organisations might not attain sufficient assets for the
security reasons in attaining the necessary loan amount attained from the lenders and banks that
can lead to in certain worst situations.
The reasons for such similarities between literature review and data analysis findings can
be because of certain likely impacts that can take place while obtaining financial assistance from
the Canadian banks are indicated below:

47PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
 Business start-ups delay. Several businesses deal with the issue of delays while
establishing their business. Such delays might not be because of the mistakes made by the
owners. Permits, licenses along with concerns related with construction re beyond control
of entrepreneurs.
 Unexpected expenses. The entrepreneurs that comply with the due diligence and
generate reasonable financial anticipations struggle to pay for certain unforeseen
expenses. In the initial stages of the business, even relatively small expense that is not
included with the organisation’s budget can make it complex for bills payment and
develop payrolls.
 Obtaining credit. Despite the fact that Canada has attained 12th rank in attaining credit as
explained within the 2018 World Bank report, the issues exist within the small business
sector where they have sufficient infrastructure to support their growth and finance their
future business opportunities. Government funding programs are not that prominent
although there are several initiatives. Few organisations face difficulties in attaining
initial $500K or $1m of investment needed and on the other hand few struggle with
attaining investment for attaining market growth. Currently, the trend is observed for
Canadian technology companies to turn to US in attaining capital for their companies.
Conversely, major banks within Canada established plans to introduce a fund for
investing up to $740m in small and emerging Canadian organisations as a part of
measures developed to attain economic growth (Kirby and Watson 2017).
 The findings revealed that in dealing with such issue, the small business requires
contemplating on their financial requirements and at the time they take place market
demands must be analysed properly. Initially, the companies must avoid the expense that

48PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
are not that important and through same hey will be able of developing a plan to develop
cash management approaches and operate their businesses. This finding is in line with the
findings of thatKirby and Watson (2017) in instances of certain capital issues, attaining
bank loans and attaining help from reliable lenders. In addition, crowd funding or going
public have also turned out to be renowned among the small businesses. Such similarities
between literature review and data analysis findings is because of the reason that this
facilitates small businesses to obtain funds from people, other individuals or investor
organisations willing to invest their money on their small business.
Chapter 6: Conclusion and Recommendations
6.1. Conclusion
The objective of current research was to analyse major challenges and issues dealt by the
small business organisations while attaining financial assistance from the banks in Canada. The
research question was to find out the major challenges and concerns faced by small business
organisations while accepting financial help from Canadian banks. The individual interview
method has been supportive in consideration to the fact that through following non-probability
convenient sampling technique, the managers, employees along with the small business owners
were involved within the interview session. The research design that was selected in guiding the
current research towards attaining a particular goal relied on the research objectives is
descriptive. The research philosophy that was employed in this study is interpretive through
which suitable responses were gathered from participants. Moreover, deductive research
approach was chosen in carrying out the current research as this study findings were gathered
through scrutinising the existing theories and models by seeking support from the collected data.

49PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
The analysis of gathered qualitative data was also analysed through considering presenting of the
transcripts and also through representing all the gathered responses from the interview
participants in a format of “question-answer” for making it easily understandable.
One of research sub-question was focused on analysing vital issues related with the small
businesses operations while gathering banks financial assistance. Answering to the question,
research revealed that while the small businesses consider obtaining equity finances from the
Canadian banks they are concerned regarding challenges regarding the time and effort needed to
find the right investor for the business. The investors also tend to impose some ownerships or
controlling interest on the small businesses along with taking part in the business decisions. This
can turn out to be a concern for these Canadian small scale companies. Moreover, the bank
manager also responded in the interview that the small businesses face issues in getting their
financial assistance granted because of their lack of consistent cash flow and steady revenue
stream all through the year. Another sub-question of the research was to reveal the likely effects
of such issues that take place at the time of attaining financial assistance from the banks.
Answering to this question the findings revealed that the small businesses face issues in getting
their financial assistance granted because of their lack of consistent cash flow and steady revenue
stream all through the year. These Canadian small businesses cannot demonstrate such
consistency because of which the loans get significantly declined. Moreover after the current
recession, Canadian banks have increased their credit score because of which several small
businesses in the nation have credit scores suffering from aftermath of such financial crises. The
employees of the Canadian banks also responded that the financial assistance has the capability
to the working capital along with improving the functioning of the businesses. This also further
facilitates in improving the business performance to an increased extent. The research also

50PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
indicated that dealing with the financial issues can turn out to be advantageous for reviewing,
analyses, revamping as well as for the purpose of carrying out research prior to the development
of the business plan for the businesses that are generally small sized while gathering financial
assistance from the banks that particularly operate within Canada.
The small business owners also confirmed in their interview that by attaining necessary
financial findings from banks they are likely to obtain advantages related with producing better
quality goods and contributing towards the industrial growth along with generating employment
opportunities in the Canadian market. The small business owners also confirmed in their
interview that by attaining necessary financial findings from banks they are likely to obtain
advantages related with producing better quality goods and contributing towards the industrial
growth along with generating employment opportunities in the Canadian market. Another sub
question that was to be answered through completion of the research was regarding approaches
through which the identified challenges can be dealt with in order to attain a better financial
situation. Answering to such research question, the study revealed that the small businesses
owners considers attaining trade finances from banks in Canada can be beneficial for them to
purchase necessary materials from the overseas companies thereby decreasing their operational
expenses. Moreover, financial assistance attained from Canadian financial institutions in the firm
of debt finance can facilitate the small businesses in retaining full control over the business
operations.
Considering the study findings recommendation that is offered to the small businesses in
Canada in solving their fund financial attainment is through their initiative to review, revamp,
research as well as rewiring their business plan. In case the current plan of action encompassing
organisational expenditure on advertising, products as well as employees are working in an

51PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
effective manner the small businesses might consider bringing in certain changes within their
business operations. These Canadian small business owners can also seek loans along with grants
that are particularly developed to offer existing companies operations a boost. This
recommendation is provided for the reason that it is observed some lenders in Canada allow the
small business owners to refinance their own debt. Moreover, there are several ways to attain
necessary business funding from the traditional bank loans to family based small loans in
Canada. The small companies on Canada are recommended to follow self-fuel growth model
following which can facilitate these companies in funding their own business endeavours. Rather
than attempting to launch a huge budget company overnight they must consider focussing on
funding new consumers.
Despite having several useful implications, the current research had certain limitations as
the study completely focused on employing qualitative data analysis and did not consider
carrying out quantitative analysis that might have affected the reliability of the data analysis
findings which might have been ensured by valid statistical analytical techniques. In addition,
another limitation might be regarding ensuring complete validity of the research findings as the
interview method was employed where the respondents might have the tendency to offer biased
responses. In addition, as a small number of respondents were considered within the interview it
might have resulted in variability in data analysis findings and accuracy of the data gathered
aligned with research questions.
6.2. Recommendations and Future Research
Based on the research findings regarding the issues dealt by small businesses in Canada
regarding successful attainment of financial assistance, certain effective recommendations are

52PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
provided to the small business owners which can resolve such is faced by them in attaining
necessary funds for the business operations:
 Recommendations are offered to the small businesses of Canada regarding development
of business angel network that can attain the possible investors along with the small
businesses along with additional benefits. Development of such business angel
networking might have relevant experience along with expertise that can offer advantages
in several small company situations.
 There are several government initiatives which can be designed in order to help the small
businesses to attain their finances for smooth business operations. The small businesses
of Canada are recommended to target the government services that are readily available
for supporting financial needs of the small businesses. This is fur the reason that if the
local government of Canada embarks on the programs that offer highly targeted along
with direct finding services to the small business owners it is important to include
partners with expertise along with having clear goals as well as certain realistic
expectations for ensuring business growth.
 Another recommendation that is offered to the small businesses in Canada in solving
their fund financial attainment is through their initiative to review, revamp, research as
well as rewiring their business plan. In case the current action plan encompassing
organisational expenditure on advertising, products as well as employees are working in
an effective manner the small businesses might consider bringing in certain changes
within their business operations. These Canadian small business owners can also seek
loans along with grants that are particularly developed to offer existing companies
operations a boost. This recommendation is provided for the reason that it is observed

53PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
some lenders in Canada allow the small business owners to refinance their own debt.
Certain localities along with the private community companies can offer financial
assistance to the existing small businesses of Canada that consider attending the seminars
and the trainings. Small businesses in Canada are also recommended to attain financial
funding for their businesses from the venture capitalists and the angel investors for the
reason that they are readily willing to accept larger risks and might also be willing to
support the small businesses owner with their needed desired funding to carry on
operations till the time the owner can successfully ensure viability of their business
operations.
 There are several ways to attain necessary business funding from the traditional bank
loans to family based small loans in Canada. The small companies on Canada are
recommended to follow self-fuel growth model following which can facilitate these
companies in funding their own business endeavours. Rather than attempting to launch a
huge budget company overnight they must consider focussing on funding new
consumers. The small businesses of Canada are also recommended to attain funds from
the small business development programs introduced in Canada such as “Small
Enterprise Development Agency (SEDA) and Eastern Cape Development Corporation
(ECDC)” in supporting the small businesses in a sustainable manner. This recommended
for the reason that it can increase the independency and creativity of these businesses.
Attaining funding from these businesses will create enabling surroundings for small
businesses operators in order to source funds devoid of totally relying on the government
along with government agencies.

54PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
 The small businesses operating within Canada are recommended not just to depend on
bank finance for gathering funds for the small businesses a d they must also explore
certain other financing options. Finances gathered from family along with personal
savings can also be cultivated in a profitable manner in supporting growth of the business
operations. In addition trade credit as well as contributions gathered from other
associations can serve as other business funds financing options available to the small
business organisations of Canada. These Canadian small businesses are also
recommended to operate business responsibly and act in an ethical manner in case they
desire being trusted by the bank officials along with the consumers.

55PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
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62PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
Appendices
Appendix 1: Ethics Application Form
Give a full lay summary of the purpose, design and methodology of the planned research.
The research proposal is prepared to discuss about the various problems that are faced by
the small business organisations in Canada while undertaking financial assistance from
the banks of Canada. It has been found that small business when aiming to fill a market
niche, the required amount of finance is difficult to obtain and also it can affect the ability
carry out a project effectively. Though the Canadian banks have provided financial
assistance by providing loans to the companies, still there can be uncertainties and poor
credit scoring by the small companies, which also affects the ability to sustain in the
competitive business environment
D1) How many participants will be recruited?
5-10 participants
D2) How was the number of participants decided upon?

63PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
Suitable number for rich qualitative research and manageable within the time frame of the
study.
D3)
a) Describe how potential participants in the study will be identified, approached and
recruited.
The participants are selected randomly, I will identify the participants through my
network (friends, colleagues, referral, and local business owners) as I have been working
in the banking industry as a business advisor for the last 3 years. So, I will be aiming to
meet with participants who are either small business advisors or participants who are
interesting in starting a new business or already have one (entrepreneurs). I will be
approaching the participants by meeting them face to face to explain my Dissertation and
the purpose of it then I will be providing them with Participant Information Sheet and
Participant consent form.
b) Inclusion criteria:

64PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
c Exclusion criteria:
D5)
a) Describe the arrangements for gaining informed consent from the research participants.
D6) What is the potential for benefit to research participants, if any?
There are no immediate benefits in taking part in this study. However, there are potential
benefits that may arise from the results of the project. For example, to evaluate various
small business advisors, entrepreneurs, who faced various problems while undertaking financial
assistance for their clients or business from Canadian organizations, are being invited to participate.
I will be approaching the participants by meeting them face to face (audio recording) to explain to them
my Dissertation and the purpose of it then I will be providing them with Participant Information Sheet
and Participant consent form. The procedures will provide 3-7 days for the individual to consider
conformity or disregard the consent taking.
Not business advisors and participants with zero interest in small business in Canada or even
thinking of starting a business.

65PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
approaches by which these challenges can be dealt with to gain a good financial
condition.
Appendix 2: Banks Offering Financial Assistance to Small and Large Businesses in Canada
(Source: Pellegrino and Savona 2017)

66PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
Appendix 3: Small Business Lending by Canadian Banks over Years
(Source: Ughetto, Scellato and Cowling 2017)
Appendix 4: Interview Transcript for Manager
Transcribed: 29 August 2019
[30: 00]
 Interviewer:What is your opinion regarding the fact that Canadian banks tends to expect
a good return rate because of which they are likely to be greatly inclined towards a huge
sized businesses rather than the small businesses?

67PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
 Interviewee:Definitely yes for the reason that the large businesses offer exceptional
returns for the financial assistance offered by the banks existing within Canada.
 Interviewer:Can the financial assistance gathered from the banks in Canada enhance the
functioning along with the overall capability to sustain within the competitive business
surrounding for the small businesses?
 Interviewee:Yes, the financial assistance must enhance the working capital along with
improving the functioning of the businesses. These also further facilitates in improving
the business performance to a great extent
 Interviewer:What are the vital financial concerns which are dealt by the small businesses
at time of undertaking financial assistance from the banks within Canada?
 Interviewee:The vital financial concerns encompass poor accessibility to the business
funds along with the unexpected expenses.
Appendix 5: Interview Transcript for Employee 1
Transcribed: 29 August 2019
[30: 00]
 Interviewer: What is your opinion regarding the fact that Canadian banks tends to expect
a good return rate because of which they are likely to be greatly inclined towards a huge
sized businesses rather than the small businesses?
 Interviewee: Yes, because the large businesses have necessary collaterals employing
which they have the ability to repay the loans take from the banks existing within
Canada.

68PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
 Interviewer: Can the financial assistance gathered from the banks in Canada enhance the
functioning along with the overall capability to sustain within the competitive business
surrounding for the small businesses?
 Interviewee: Yes, the financial assistance enhances the functioning of the businesses as
bank loans can provide fixed capital investment and necessary working capital for their
initial business operations
 Interviewer: What are the vital financial concerns which are dealt by the small
businesses at time of undertaking financial assistance from the banks within Canada?
 Interviewee:The vital financial concerns include lack of collateral attaining loans with
high interest rates and lack of accurate documentation
Appendix 6: Interview Transcript for Employee 2
Transcribed: 29 August 2019
[30: 00]
 Interviewer: What is your opinion regarding the fact that Canadian banks tends to expect
a good return rate because of which they are likely to be greatly inclined towards a huge
sized businesses rather than the small businesses?
 Interviewee: I can agree with the statement for the reason that the large businesses have
the capability to pay the bank loans ensured by their consistent cash flow situation
 Interviewer: Can the financial assistance gathered from the banks in Canada enhance the
functioning along with the overall capability to sustain within the competitive business
surrounding for the small businesses?

69PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
 Interviewee: I agree with the fact as the financial assistance gathered from the Canadian
banks to attain enough capital in supporting their business growth and supporting their
inventory purchase programs.
 Interviewer: What are the vital financial concerns which are dealt by the small
businesses at time of undertaking financial assistance from the banks within Canada?
 Interviewee: I believe that financial concerns faced by the small businesses in Canada
include their low productive operations history and lack of personal guarantees to attain
loans
Appendix 7: Interview Transcript for Owner 1
Transcribed: 29 August 2019
[30: 00]
 Interviewer: What is your opinion regarding the fact that Canadian banks tends to expect
a good return rate because of which they are likely to be greatly inclined towards a huge
sized businesses rather than the small businesses?
 Interviewee: I believe this can be the scenario as the large businesses offer exceptional
returns for their gathered loan amount from banks.
 Interviewer: Can the financial assistance gathered from the banks in Canada enhance the
functioning along with the overall capability to sustain within the competitive business
surrounding for the small businesses?
 Interviewee: I agree as the financial assistance can support small businesses in
improving the business performance to a great extent through representing its
accumulated wealth of assets owned by the companies

70PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
 Interviewer: What are the vital financial concerns which are dealt by the small
businesses at time of undertaking financial assistance from the banks within Canada?
 Interviewee: I perceive that the financial issues faced by small businesses in acquiring
bank loans include their unpredictable future revenue and cash flow
Appendix 8: Interview Transcript for Owner 2
Transcribed: 29 August 2019
[30: 00]
 Interviewer: What is your opinion regarding the fact that Canadian banks tends to expect
a good return rate because of which they are likely to be greatly inclined towards a huge
sized businesses rather than the small businesses?
 Interviewee: I agree with the fact as the large businesses in Canada have the potential to
pay back the bank loans as they have sufficient credit to address debt obligations
 Interviewer: Can the financial assistance gathered from the banks in Canada enhance the
functioning along with the overall capability to sustain within the competitive business
surrounding for the small businesses?
 Interviewee: I have agreed with the fact that the financial assistance that is attained by
the Canadian small business will be used for purchasing necessary machineries and for
supporting all their initial investments for deriving profits.
 Interviewer: What are the vital financial concerns which are dealt by the small
businesses at time of undertaking financial assistance from the banks within Canada?

71PROBLEMS FACED BY SMALL BUSINESSES IN CANADA IN FINANCIAL ASSISTANCE
 Interviewee: I can state that small businesses in Canada face issues in attaining sufficient
bank loans that majorly includes credit rationing insufficient finance absence of sufficient
documentation absence of necessary collaterals and high rates of interest.