The Impact of Banking Finance on Financial Performance of Egyptian Small Businesses in Period from 2013 to 2016

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DOI: 10.4236/oalib.1105146    369 Downloads   1,449 Views  Citations

ABSTRACT

Small business becomes important for the economic development as it acts as an engine of employment. This research focuses on the impact of banking fi-nance at a normal interest rate on small business financial performance. The research approach adopted in this dissertation includes quantitative secondary data from annual reports of 90 small business firms in Egypt in period from 2013 to 2016 (2013 and 2014 without loan, 2015 and 2016 with a loan). Data was collected for the research variables; Loan Volume, Return on Assets, Re-turn on Equity and Net Profit Margin. Loans Volume at a normal interest rate represents the independent variable, Firm Leverage and firm age represent the control variable, and Financial Performance Indicators (ROE, ROA and NPM) represent the dependent variable. Results showed that loan volume has a nega-tive significant impact to financial performance of small business, firm lever-age has a negative significant impact to financial performance of small business and firm age has insignificant impact to financial performance of small business.

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Saadallah, E. and Salah, A. (2019) The Impact of Banking Finance on Financial Performance of Egyptian Small Businesses in Period from 2013 to 2016. Open Access Library Journal, 6, 1-14. doi: 10.4236/oalib.1105146.

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