Research on Problems Faced by Small Businesses in Canadian Financing

This report presents a research proposal focused on the challenges faced by small businesses in Canada when seeking financial assistance from Canadian banks. The research employs a qualitative methodology, utilizing interviews and focus groups to gather data. The report outlines the research methodology, including epistemological stance, threats to reliability and validity, data collection methods, and sampling techniques. It also addresses potential problems encountered during the research process, ethical considerations, and the method for data analysis. The study aims to identify the key obstacles small businesses face in securing financing, providing insights into the current landscape and potential solutions. The research utilizes a survey method with a sample of 20 small businesses from five major Canadian towns, employing simple random sampling along with a convenience sample method. The data analysis will be conducted using thematic content analysis for both interview and focus group data. The research emphasizes the importance of ethical considerations, including informing respondents about the data collection's purpose and protecting their personal information.

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Contents
INTRODUCTION...........................................................................................................................................2
RESEARCH METHODOLOGY & DATA COLLECTION METHOD.......................................................................2
RESEARCH METHODS..................................................................................................................................3
EPISTEMOLOGICAL STANCE.........................................................................................................................4
THREATS TO RELIABILITY & VALIDITY..........................................................................................................4
DATA COLLECTION METHOD.......................................................................................................................5
SAMPLE & SAMPLING TECHNIQUES............................................................................................................7
PROBLEMS ENCOUNTERED.........................................................................................................................8
ETHICAL ISSUES...........................................................................................................................................8
DATA ANLAYSIS...........................................................................................................................................9
References...................................................................................................................................................9

INTRODUCTION
This research is focused on identification and investigation of problems of challenges that small
business in Canada goes through while trying to undertake financial assistance from banks of
Canada. In this part of research proposal; identification of research methodology, methods
used for data collection, types of data collection, sample and sampling technique, threats to
reliability and validity, data analysis and problems encountered while conducting the research
along with their solutions is discussed.
RESEARCH METHODOLOGY & DATA COLLECTION METHOD
Research methodology provides description of the method to be used for undertaking the
research that has direct effect on its result. There are three methods used for conducting
research; qualitative method, quantitative method and mixed methods; that is both qualitative
and quantitative methods together. The use of qualitative method is done when the researcher
needs to gather opinion or information from respondent which has to be analyzed further for
getting reliable research result. In this methodology, the information collected needs to be
segregated by research for further analysis (Cresswell, 2013). In quantitative methodology, the
information collected is quantifiable in nature and thus easy to analyze.
Considering the nature of research; qualitative method is more suitable. In order to get proper
result; the research methods selected are interview and focus group method. While
undertaking interview, respondents will be asked closed end questions and open end questions
in order to get their opinions (Rowley, 2012). Another method for data collection used here is

focus group which is also a qualitative method. Thus, qualitative methodology will be used for
this research.
RESEARCH METHODS
The main aim of research method is to guide researcher to get the desired solution for research
problem identified. For making decision on most suitable method for conducting research, the
researcher has to take into consideration certain aspects like the level of legitimate level of the
method used, the level of contribution of the method used and procedures required in
conducting research with particular research method (Graziano & Raulin, 2012).
A researcher can choose from generally three type of research methods; case study, action
research and survey. The study based on action research is aimed at solving problems that are
immediate. The case study method is aimed at providing a detailed analysis of a particular
situation or case at longer period. A survey method includes research where data is collected
from either a sample that represents population or from entire population.
Considering this research, it is aimed at collecting first hand data and thus case study method
cannot be used here. Case study is about studying the entire case and then coming to a
solution. This research is aimed at all small business in Canada that faces problems with
financing at banks of Canada. However, it is not possible to get a solution without knowing the
problems faced by business. The method of action research is not possible here as in this
method solutions are arrived and implemented on basis of result.
The solutions implemented are again checked in order to see their impact after implementation
(Saunders, et al., 2012). Here, the research is conducted to understand the problems faced by

small business and thus the result will be the problems identified. Therefore, action research
method cannot be used here. The population for this research is small business of entire
Canada; however it is not possible to conduct research on entire population and this sample
will be selected. This means survey method suits this research and thus will be used here.
EPISTEMOLOGICAL STANCE
Epistemology is about knowing about acquiring knowledge or information for the concerned
question or problem. Some real aspects are involved in it on basis of which it tries to
understand the aspects that is known and those that need to be discovered. One gains
knowledge in order to understand the difference between real facts and wrong ones from
across the world. There are three types of epistemology; foundationalism, coherentism and
pragmatism. From these three, pragmatism explains that ideas are tools and if they actually
work, then they are true (Kim & McGrath, 2018).
In this research, the main concern is about knowing problems faced by small business in getting
financing from banks in Canada. This means that in order to know the truth; that is problems
business face; one has to get answers which are possible only by communicating to the
population concern. In case of close end questionnaire; the respondent will only be able to
choose from option provided and thus could not provide their own opinion. In such case, actual
truth will never be revealed. Instead; if they are allowed to express their opinion freely on
financing difficulties; the researcher will gain knowledge that will help them to answer the
research problem. So, survey method with qualitative methodology is consistent with
epistemological stance.

THREATS TO RELIABILITY & VALIDITY
In this research, qualitative method; that is focus group and interview methods are used. In
both these methods opinions of respondents are taken and thus the result depends on
respondents. However, they may not always give their correct opinion resulting into big threat
to research reliability. Considering this to be a qualitative research, it is tough to collect
accurate and precise data and even research interpretation of information also affects the
reliability of research results. Therefore, this is another threat to reliability of result. There are
chances that result might differ when some other researcher will conduct the same research
depending on personal interpretation of researcher and its subjective nature. However, this
threat of reliability can be overcome by taking proper care in data collection and interpretation.
Validity in research means that the methodology selected is correct for the research and
provides the desired results as per researcher (Siccama & Stacy Penna, 2008). In this research,
qualitative methodology is used; that is survey. The main aim of this research is to understand
problems faced by small business in acquiring finance from banks of Canada. For this a detail
response is and thus the instrument used is valid in nature. The main threat to validity in this
research is control of researcher over research variable. In addition, the method used by
researcher may not be used in the manner expected; thereby affecting validity of research.
DATA COLLECTION METHOD
For this research, secondary data is used as a base for collection of primary data. Various
methods for collection of primary data includes
Interview method

Focus groups
Questionnaire method
Case study
Observation
Figure 1: Primary Data collection techniques
Source: https://www.slideshare.net/parabprathamesh/primary-sec
In this research, primary data collection is done to identify problems faced by small business in
getting financing facility from banks in Canada. Therefore, it is important to have detailed
information and first hand data for the same. Therefore, case study method cannot be used.
Observation method is about observing people which cannot be used here as data collection
with views of respondents need to be done. Questionnaire method will only get answers to

questions they are provided by researcher and will thus limit the amount of data collected and
affect reliability of research result. Focus groups and interview method are suitable for this
research, as open end and closed end questions will be asked in interview thereby providing
reliable data to researcher (Murphy & Ensher, 2008). Through focus group, opinions of
respondents will be known. Thus, these two data collection methods are used in this research.
SAMPLE & SAMPLING TECHNIQUES
The population for this research is small business organizations in Canada. However it is not
possible to interview the entire population and this sample is selected for the same.
Figure 2: Sampling
Source: https://towardsdatascience.com/sampling-techniques-a4e34111d808
Research Population – Small business organization in Canada
Sample – 20 small business organizations from 5 major towns in Canada
Sample size – 100

Sampling technique – simple random sampling along with convenience sample method
will be used for this research (Saunders, et al., 2012). For focus group, 3 groups consisting
of 5 individuals in each group will be established.
Small business will be approached through emails and through phone to get their consent and
later will be provided information about current business trends before handing them
questionnaires.
PROBLEMS ENCOUNTERED
Following are the problems encountered in gaining access to data
Consent of small business organizations
Convincing people from such organizations to take part in focus group method
Getting reliable data from respondents
Strategies to solve such problems
Relaxing the respondents by informing them on different trends in business. This will
help gain their confidence
Explaining them the reason for conducting this research.
Encouraging them to provide details through constant communication while
interviewing.
ETHICAL ISSUES
Ethical issues to be considered for this research include
It is important to inform the respondents the reason for collecting data.

In addition, it is important to protect personal information of respondents; and thus an
undertaking will be provided to respondents that their personal information will not be
used for any other purpose.
Honesty from side of researcher is important in collecting data. It can be an ethical issue
if data is not collected in proper manner.
DATA ANLAYSIS
For this research, both interview method with close and open and questions and focus group
methods are used. For analyzing qualitative data collected through interview method; thematic
content analysis method will be used (Collis & Hussey, 2013). For focus group method also
thematic content analysis method will be used. Since the data collected is qualitative in both
method; they can be analyzed in similar manner.
References
Collis, J. & Hussey, R., 2013. Business Research; A Practical Guide for Undergraduate and
Postgraduate Students. 4 ed. London: Palgrave-MacMillan.
Cresswell, J., 2013. Research Design: Qualitative, Quantitative, and Mixed Methods Approaches;
4th edition. s.l.:SAGE Publications, Inc.
Graziano, A. M. & Raulin, . M. L., 2012. Research Methods: A Process of Inquiry. 8 ed. s.l.:
Pearson.
Kim, B. & McGrath, M., 2018. Pragmatic Encroachment in Epistemology. 1 ed. s.l.:Routledge.

Murphy, S. & Ensher, E., 2008. A Qualitative Analysis of Charismatic Leadership in Creative
Teams: The Case of Television Directors. The Leadership Quaterly, 19(3), pp. 335-352.
Rowley, J., 2012. Conducting research interviews. Management Research Review, 35(3/4), pp.
260-271.
Saunders, M., Lewis, P. & Thornhill, A., 2012. Research Method for Business Students. 6 ed.
s.l.:Pearson.
Siccama, C. J. & Stacy Penna, 2008. Enhancing Validity of a Qualitative Dissertation Research
Study by Using NVIVO. Qualitative Research Journal, 8(2), pp. 91-103