Quantitative Study: Challenges for Small Businesses in Bank Financing

This assignment investigates the challenges small businesses encounter when seeking financial assistance from banks, particularly within the Canadian context. The study employs a quantitative research approach, utilizing descriptive and correlational designs, and focusing on primary data collection through interviews with financial institutions, academic experts, and officials from the Canadian small business financing program. The research delves into the advantages and limitations of the chosen descriptive research design, addressing issues of participant naturalness, confidentiality, and the correlation of variables. The assignment also explores strategies to maximize the validity and reliability of collected data, such as triangulation, ensuring the accuracy and truthfulness of the research findings. The Canadian government's support for small businesses is acknowledged, but the study aims to highlight the difficulties that these businesses face in obtaining loans, including limited operational scope and the banks' preference for larger, more established clients. The financial analysis of the Canadian small business financing program is also a part of the research, examining the program's efficiency and the characteristics of borrowing businesses and lenders.

CHALLENGES FACED BY SMALL BUSINESSES WHILE UNDERTAKING
FINANCIAL ASSISTANCE FROM BANKS
QUANTITATIVE APPROACH TO RESEARCH
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CHALLENGES FACED BY SMALL BUSINESSES WHILE UNDERTAKING
FINANCIAL ASSISTANCE FROM BANKS
Challenges faced by small businesses while undertaking financial assistance from banks
Introduction
The Canadian government is greatly supportive of the small and medium-sized
businesses in their quest to acquire financial assistance from banks and other financial
institutions. The Canadian small business financing program was crafted with the main intention
of covering the gaps that exist in the lending market that offers services to small and medium
enterprises. The program is particularly applicable in the high risk of small and medium business
environments. The program helps in the increment in the availability of loans to the small and
medium businesses for use in establishment, expansion as well as modernizing the businesses.
The loans available to the small businesses can be categorized into three different types which
are; buying of tools and equipment, improvement of leasehold as well as real property (Collis
and Hussey, 2013). The program has been very successful in helping small businesses to acquire
financing from banks in Canada. The main objectives of the Canadian small business financing
program are to stimulate the economic growth and creation of jobs to Canadians, improving
accessibility to loans as well as helping in the establishment of new businesses.
Despite the role played by the Canadian government in helping small businesses to
acquire financial assistance from the banks, these businesses are faced with a myriad of
challenges that they need to overcome (Longenecker, 2018). This research study is aimed at
pointing out the problems that the small businesses face while looking for financing from banks.
One of the key challenges faced by small businesses while looking for loans is the limited scope
of their operations which erodes the confidence of banks as far as the creditworthiness of these

CHALLENGES FACED BY SMALL BUSINESSES WHILE UNDERTAKING
FINANCIAL ASSISTANCE FROM BANKS
businesses is concerned. The Canadian banks are usually attracted to the large established
organizations which guarantee them higher rates of interest.
Data collection and analysis
In conducting this research as to the challenges faced by small businesses while
undertaking financial assistance from banks various data collection methods will be employed.
Quantitative approaches of data collection will be most applicable with both descriptive and
correlational designs being used. Interviews will be conducted with the main intention of
obtaining in-depth information which will include the perceptions, views as well as factual
information that will help in solving the evaluation questions. The interviews will seek to gather
quality feedback from different respondents which will include financial institutions, academic
experts as well as officials from the Canadian small business financing program. The financial
analysis of the Canadian small business financing program will be conducted so as to address the
issues relating to its economy and efficiency. The profile and the key characteristics of the
borrowing businesses and the trends of the lenders will be analyzed.
Advantages and limitations of the research design
The main advantages of the descriptive research design as used in this study includes the
observation of the participants in the natural environment, the collection of data allows for
detailed or in-depth information that is quantitative in nature and finally, the research design
helps in collection of data in large volumes (Gray, 2010). The limitations of the descriptive
research design include the failure of the participants to be natural while under observation, there

CHALLENGES FACED BY SMALL BUSINESSES WHILE UNDERTAKING
FINANCIAL ASSISTANCE FROM BANKS
is little confidentiality, the findings may be manipulated as well as the failure of the research to
correlate variables in the determination of causes and effects (Read, 2008).
Strategies for maximizing validity and reliability of data collected
There are various measures that can be employed to ensure the reliability and validity of
data collected. The reason for these measures is to ensure transparency and accountability in a
research study. To ensure validity and reliability of data one of the key methods that can be used
include triangulation, whereby there is a usage of data from multiple autonomous sources so as
to establish the accuracy and truth of a given claim (Dana, 2007).

CHALLENGES FACED BY SMALL BUSINESSES WHILE UNDERTAKING
FINANCIAL ASSISTANCE FROM BANKS
References
Collis, J. and Hussey, R., 2013. Business Research: A Practical Guide for Undergraduate and
Postgraduate Students. 4th ed. London: Palgrave-MacMillan.
Dana, L. 2007. Handbook of research on ethnic minority entrepreneurship: a co-evolutionary
view on resource management. Cheltenham, UK Northampton, MA: Edward Elgar.
Gray, D. & Gray, D. 2010. The complete Canadian small business guide. Whitby, Ont: McGraw-
Hill Ryerson.
Longenecker, J. 2018. Small business management: launching and growing new ventures.
Toronto: Nelson Education.
Read, L. 2008. The financing of small business a comparative study of male and female business
owners. London New York: Routledge.