Barriers to information and financing in small and medium-sized enterprises in central Vancouver Island
Subject
Abstract
This study sought to identify key support needs of Small and Medium-sized Enterprises (SMEs) and the services required by SMEs to expand and improve. The purpose of the study was to identify barriers that prevent SMEs from accessing business information and financing from Community Futures Central Vancouver Island (CFCI). There were four research questions: 1. What business services do owners require for their businesses? 2. Where are business owners currently going for business service(s)? 3. What factors affect business owners when they seek financing or business-related service(s)? 4. What is the awareness and perception of SMEs of the services offered by CFCI? Convenience sampling was used in this study. A survey was designed based on previous research study conducted by Community Futures North Cariboo with SMEs, and (a) was distributed to 1377 SME owners listed with CFCI, (b) published on CFCI social media websites, (c) Gabriola, Nanaimo, Ladysmith, Parksville and Qualicum Beach Chambers Newsline, and (d) sent to businesses associated with CFCI. In total N=174 responses were received, with 77% being current and 10% past business operators, and 11% who want to operate a business in future. A mixed method explanatory research approach was adopted. Qualitative methodologies were used to identify prominent themes and quantitative methodologies were used to analyse responses numerically. Lack of familiarity with programs was the main barrier to SMEs utilizing CFCI counselling and coaching services, and financing (such as; loans, low interest rate) was the major concern of SMEs. Other important barriers included, startup/ working/expansion capital, qualified & experienced staff, new business/clients, finding additional time and marketing help. The study also includes recommendations to the CFCI for improving SMEs access to business information and financing for future research.