Designing a financing model for knowledge-based small and medium businesses

Shahzadeh Safavi, Seyyed Mohammad; Bikzadeh Abbasi, Farzaneh; Shahverdini, Shadi; Raad, Abbas

doi:10.22075/ijnaa.2023.32072.4759

Designing a financing model for knowledge-based small and medium businesses

Document Type : Research Paper

Authors

Seyyed Mohammad Shahzadeh Safavi ¹

Farzaneh Bikzadeh Abbasi ²

Shadi Shahverdini ³

Abbas Raad ⁴

¹ Department of Industrial Management, North Tehran Branch, Islamic Azad University, Tehran, Iran

² Department of Management, South Tehran Branch, Islamic Azad University, Tehran, Iran

³ Department of Business Administration, Shahr-e-Qods Branch, Islamic Azad University, Tehran, Iran

⁴ Department of Industrial Management and Information Technology, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran

10.22075/ijnaa.2023.32072.4759

Abstract

One of the most important financial decisions is the way of financing economic enterprises, which plays a significant role in the continuation and growth of their profitability. The ability of companies to obtain financial resources inside and outside the company in order to invest and implement development plans is one of the main factors in the growth of profitability of companies. Active commercial companies also need financial resources to develop the market, modernize technology, increase product quality, produce new products, and grow their profitability. Also, investors in economic projects will need capital and money to implement their plans. One of the most important financial decisions is the way of financing economic enterprises, which plays a significant role in the continuation and growth of their profitability. The ability of companies to obtain financial resources inside and outside the company in order to invest and implement development plans is considered one of the main factors in the growth of profitability of companies. Companies often when they need new financial resources, take advantage of the company's internal resources, including accumulated profits and reserves, or through receiving loans and credits from banks and financial and credit institutions or issuing shares and other types of debt securities. capital, they meet their needs. Therefore, this research deals with the design of the financing model for small and medium knowledge-based businesses and examines and discusses the theories of experts.

Keywords

financing

Knowledge Based Companies

small and medium businesses

profit margin

ANP

[1] U.I. Atah, M.O. Mohammed, E.R. Adawiyya, and A.A. Adeyemi, Proposed secured bay-salam model for financing agriculture by Islamic banks, Int. J. Manag. Appl. Res. 6 (2019), no. 4, 181–195.

[2] M.M.S. Billah, Sukuk Paradigm and Structure, Chapter 23, Islamic Financial Products, Springer Press, 2019, pp. 299-325.

[3] L. Dandara, The particularities of the social capital changes of joint stock companies according to national legislation, J. Res. Trade Manag. Econ. Dev. 15 (2021), no. 1, 86–105.

[4] S. Darjay, Performance of common stock market and relationship between common stock return and inflation: A Bhutanese case study, Bhutan J. Bus. Manag. 15 (2022), no. 1, 15–26.

[5] A. Gibadullina, Rent and financial accumulation: locating the profitability of American finance, New Politic. Econ. 28 (2022), no. 2, 259–283.

[6] Y. Gong and X. Wei, Asset quality, financing structure, and bank regulations, Int. Rev. Econ. Finance 80 (2022), no. 4, 1061–1075.

[7] J.R. Graham, Presidential address: Corporate finance and reality, J. Finance 77 (2022), no. 4, 1975–2049.

[8] E. Hirsch and D.N. Gellner, Introduction: Ethnography of Organizations and Organizations of Ethnography, Routledge, 2020.

[9] R. M. Hull and J. B. Hull, Taxpayer wealth and federal tax revenue under a tax policy that shields retained earnings used for growth from taxes, eJTR 19 (2021), no. 1, 48-65.

[10] S.G. Jun and F.C. Jen, Trade-off model of debt maturity structure, Rev. Quant. Finance Account. 20 (2003), no. 3, 5–34.

[11] M. Klausner, M. Ohlrogge, and E. Ruan, A sober look at SPACs, Yale J. Regul.39 (2022), no. 1, 20–48.

[12] A. Lahsasna, K.M. Hassan, and R. Ahmad, Forward Lease Sukuk in Islamic Capital Markets, Springer Books, 2018.

[13] E.M. Meemken and M.F. Bellemare, Smallholder farmers and contract farming in developing countries, Proc. Nat. Acad. Sci. 117 (2020), no. 1, 259–264.

[14] N. Ndjeck and N.G.O.M. Anita, How do SMEs ensure a balanced financial structure despite bank credit rationing?, J. Econ.Lib. 9 (2022), no. 1, 19–37.

[15] A.A. Saidi, E.B. Uchenna, and M.S. Ayodele, Bank loans and small medium enterprises’ (SMES) performance in Lagos, Nigeria, Ilorin J. Human Resource Manag. 3 (2019), no. 1, 52–61.

[16] F. Vitolla, A. Salvi, N. Raimo, F. Petruzzella, and M. Rubino, The impact on the cost of equity capital in the effects of integrated reporting quality, Bus. Strategy Envir. 29 (2020), no. 2, 519–529.