Factors Influencing Green Financing Availment Among Small and Medium-Sized Enterprises

doi.org/10.70228/CBJ2022046

Cite this article Read this article

ABSTRACT

This study aimed to determine the factors influencing the availment of green financing among Small and Medium Enterprises (SMEs) in Bacolod City. It applied descriptive research design and made use of a researcher-made survey questionnaire. The participants of the study were owners or managers of SMEs. A sample size of 232 was obtained. However, only 138 responded to the survey due to certain limitations. Simple random sampling was applied to identify the participants. Further, frequency distribution was used to measure the study variables. Significant findings revealed that tax incentives on green projects were the most common influential external factor in their decision to avail of green financing. As for the internal factors, the need for additional capital was identified by more than half of the respondents. In investing in green products, the majority perceived the need for more awareness of the advantages of investing in new technologies, lack of stakeholder interest, and lack of workforce skill set. Despite these, the respondents are still likely to avail of green financing in the future. Hence, it was recommended that to promote green financing and green practices, government agencies, Local Government Units (LGUs), and the DTI should provide or improve city ordinances that incentivized green practices and conduct aggressive information drives, seminars, and trade fairs. Future researchers may also focus on covering metropolitan areas where the market for green financing is broader. They can also look into the association between the challenges of green funding and the likelihood of availment.

Keywords: green finance, green loans, small and medium enterprises, green practices, sustainability