The Role of Banks in Financing Business Enterprises (Case Study: Kish Island)

This study examines the role and significance of banks in financing business enterprises, which influences investment growth through debt financing (loans). Data were collected through interviews based on a researcher-designed questionnaire administered to 150 small and medium-sized enterprises (SMEs) on Kish Island. Subsequently, using a linear regression econometric model, key factors affecting investment growth financed by debt were identified. The statistical analysis tool applied was STATA software. The findings of this research indicate that there is a reciprocal correlation between firm age, size, business plan, the three sectors of manufacturing, commercial, and service companies, ownership variables, financing sources, and the growth of investment financed by banks. Therefore, the results of this study suggest that access to external financial resources through bank loans is an important factor influencing investment growth.