Financial resources, financial literacy and small firm growth: Does private organizations support matter?
Studies on small firm growth in many countries focused on some specific factors, and no comprehensive research on this issue is available to draw the conclusion. Based on the concept of the theory of Resource Based View (RBV), a research framework is formulated in order to examine how resources like finance and financial literacy of the owner-manager affect financial and non-financial growth of small firms operating in Bangladesh. Data was collected through self-administered questionnaires from 407 owner-managers of small firms operating in three divisions of Bangladesh where most of the small businesses are concentrated. Using partial least squares analysis, the paper found that both finance and financial literacy have positive and statistically significant relation with small firm financial and non-financial growth. The paper also showed that private organizations support moderates the relationships between finance, financial literacy and small firm financial and non-financial growth. From the findings, it is evident that if small firms have better access to financial resources and can earn required financial literacy and at the same time get proper and adequate support from private organizations, they will contribute more to the economy by achieving their financial and non-financial growth.
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Copyright (c) 2020 Md. Mosharref Hossain
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