Determination of the Effective Factors on Financing of the SME through Logit Model with Panel Data

Industrial Clusters and SMEs play a critical role in economic growth, reducing unemployment rate, improving technology and boosting exports in countries. Regarding the importance of SMEs in economies, it is essential to provide a platform in which SMEs can be formed and survive. The main obstacle is accessing to external financial resources. The main aim of this paper is to survey effective factors on SMEs' access to financial resources. This paper main question is that, which factors affect on SMEs' access to financial resources. Therefore, at first, we select SMEs from active industrial parks in three provinces namely Tehran, Isfahan and East Azerbaijan from 2006-2015. Then, through logit model with panel data and using Eviews9, we assess factors affecting SMEs' access to financial resources. Results reveal that interest rate, size of SMEs, age of SMEs, size of loans and loans maturity contribute to SMEs' success/failure to obtain financial supports