Unlocking the path to funding: A comparative analysis of factors influencing bank loan access for small and medium enterprises from an entrepreneurial perspective

This study aims to examine the influence of determinants such as business location (BL), organizational legal form of the business (OLF), deadline of loan repayment in months (DLR), interest rate (IR), and number of employees (NE) on the Small and Medium Enterprises (SMEs) access to bank loans measured by the loan amount (LA) borrowed by SMEs. To examine the influence of these factors, the research methodology incorporates primary data that were collected through quantitative research conducted on 300 SMEs in the Republic of Kosovo and 300 SMEs in the Republic of North Macedonia. To achieve this goal, the multiple linear regression model was used to assess the influence of the variables on SMEs' access to bank loans based on managers' or entrepreneurs' observations. Findings indicate differences in both countries. In Kosovo, the organizational legal form of the business, deadline of loan repayment, and number of employees positively and significantly influence the SMEs' access to bank loans. Surprising results have resulted in business location and interest rates as they have not expressed a significant influence. In North Macedonia, the results revealed that BL, OLF, DLR, and NE positively and significantly influence the SMEs' access to bank loans. Furthermore, the results in North Macedonia also revealed that the interest rates have no significant influence on SMEs' access to bank loans. In terms of contribution, the study offers novel data using econometric techniques, and provides unique insights into facilitators and inhibitors to access to bank loans for SMEs in Kosovo and North Macedonia.