The thesis aims to explore the different financial instruments used by Swiss SMEs in the manufacturing industry and factors that influence SMEs when making financial decisions. In this sense, growth, size, age and its impact on financial decision making are examined. Moreover, this research is trying to investigate how satisfied SMEs are with their financial instruments and bank loans in particular, which can also influence SMEs in making financial decisions.
This research was realised using a mixed research approach. Qualitative data was collected by conducting 12 semi-structured interviews with SMEs and experts in the field. For collecting quantitative data an online survey was sent to 1’004 SMEs. All data was collected from companies located in the German speaking part of Switzerland.
Swiss SMEs in the manufacturing industry follow a clear strategy when it comes to financial decision making. In general, the examined enterprises want to act flexible, independent and are risk-averse. These characteristics are reflected when making financial decisions. With regard to family businesses independence is even more important.
Therefore, SMEs focus on using financial instruments that perfectly fit to their strategy. The main instruments used are retained earnings, personal savings, bank loans and family and friends. Size and growth mostly does not have a strong impact. However, the outcomes of the online survey show that growth might have an impact on retained earnings. As most examined SMEs are equipped with a lot of equity these enterprises have no problems when asking for bank loans. The online survey and the conducted interviews further show that most SMEs are satisfied with the available financial instruments and bank loans in particular. This research also concludes that almost no financing dilemma exists. A finance gap is also nearly not existent.
The small sample size with regard to the online survey and limited scope used in this research does not allow generalisation to the population. As SMEs often have a lack of time and are not willing to share financial information to externals it was difficult to find interview partners.
Inhaltsverzeichnis (Table of Contents)
- Abstract
- Acknowledgements
- Table of Content
- Introduction
- Research Objectives
- Structure of the Thesis
- Research Question
- Literature Review
- Definition of SMEs
- Growth stages and the impact of age and size of a company
- Finance and Capital Structure of SMEs
- Relevant Theories
- Financial Instruments
- Market Characteristics
- SME Switzerland
- Employment and Industry Characteristics
- Financial Structures
- SME Switzerland
- Conceptual Framework
- Research Methodology
- Research Question and Hypotheses
- Research Design
- Sampling Strategy
- Data Collection
- Quantitative Research (online survey)
- Qualitative Research (interviews)
- Data Analysis
- Triangulation
- Limitations and Critical Reflections
- Researcher's Role
- Ethical Considerations
- Outcomes
- What is a typical financial structure of SMEs in Switzerland?
- Summary
- Does firm size affect SMEs' financial decision making?
- Summary
- Does employment growth affect SMEs' financial decision making?
- Summary
- How satisfied are SMEs with their financial structure? What would they improve and why?
- Summary
- What is a typical financial structure of SMEs in Switzerland?
- Conclusion
- Reflection on the Research Question
- Other Findings
- Contribution to Literature and Practice
- Insights for Further Research
- List of References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis investigates the financial instruments used by Swiss SMEs in the manufacturing industry and factors that influence their financial decisions. The research examines the impact of growth, size, and age on financial decision-making. It also aims to explore the satisfaction levels of SMEs with their financial instruments, particularly bank loans, and how this satisfaction influences financial decisions.
- Financial decision-making strategies of Swiss SMEs in the manufacturing industry
- Influence of growth, size, and age on financial decision-making
- Impact of satisfaction with financial instruments on decision-making
- Analysis of financial instruments used by SMEs, including retained earnings, personal savings, bank loans, and family/friends
- Assessment of the existence of a finance gap and financing dilemma
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the research topic, outlines the objectives and structure of the thesis, and presents the research question. It also provides a brief overview of the Swiss SME landscape.
- Literature Review: This chapter delves into the existing literature on SMEs, their financial structures, and the impact of growth, size, and age on their financial decision-making. It also explores relevant theories and the market characteristics of Swiss SMEs.
- Research Methodology: This chapter describes the research design, sampling strategy, data collection methods, and data analysis techniques employed in the study. It also addresses the limitations of the research and discusses ethical considerations.
- Outcomes: This chapter presents the key findings of the research, exploring the typical financial structures of Swiss SMEs, the impact of firm size and growth on financial decision-making, and the satisfaction levels of SMEs with their financial instruments.
Schlüsselwörter (Keywords)
The research focuses on the financial structures of Swiss SMEs in the manufacturing industry, examining various financial instruments, bank relationships, and the influence of factors such as size, age, and growth on decision-making. Key concepts include SME financing, financial instruments, bank loans, and satisfaction with financial structures.
- Quote paper
- Jonas Josef (Author), 2015, Financial Structures of Swiss SMEs in the manufacturing industry, Munich, GRIN Verlag, https://www.grin.com/document/323202
