Factors that hinder access to financing for MSMEs: the case of Querétaro

Abstract

Restrictions on Access to finance for sme’s in Queretaro One of the main obstacles faced by smes to be competitive is the lack of financing due to market failures, disjointed policies at the federal and state governments, which do not promote financial credit, lack of financial literacy by the employer as well as information asymmetry between banks and firms.

The objective of this study is to identify the main sources of financing and the factors impeding

access to finance for smes in the state of Querétaro. We conducted a field study in which personally interviewed using a questionnaire to direct 168 empresas structured with nine variables were measured: financial structure, funding sources, current, average term financing, cost of credit, loan will, average interest rate, interest rate type, type of warranty provided, Reason for not having access to financing.

The most important findings allow us to determine that: 100% of the sme sector in Querétaro

industry has access to a source of bank financing and banking, while trade and services more than 50% are self-financing. The main reason not to apply for funding in the financial system is that the sme does not cover the requirements for access to credit.