Strategies to obtain capital for small businesses in Maryland Business & Finance homework help

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What are the strategies small business owners use to obtain a line of credit for Capital

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Abstract

Strategies to Obtain a Working Capital Line of Credit for Small Businesses

by

Solomon Atamaya

MS, DeVry University, 2014

BS, Kaplan University, 2012

Doctoral Study Submitted in Partial Fulfillment

of the Requirements for the Degree of

Doctor of Business Administration

Walden University

March 2022

Abstract

Strategies to Obtain a Working Capital Line of Credit for Small Businesses

by

Solomon Atamaya

MS, DeVry University, 2014

BS, Kaplan University, 2012

Doctoral Study Submitted in Partial Fulfillment

of the Requirements for the Degree of

Doctor of Business Administration

Walden University

March 2022

Dedication

Acknowledgments

27



SNC Internal Information




SNC Internal Information



Table of Contents




List of Tables





iv



List of Figures





v



Section 1: Foundation of the Study





1



Background of the Problem





1



Problem Statement





2



Purpose Statement





2



Nature of the Study





3



Research Question





3



Interview Questions





4



Conceptual Framework





4



Operational Definitions





5



Assumptions, Limitations, and Delimitations





5



Assumptions





5



Limitations





6



Delimitations





6



Significance of the Study





7



Contribution to Effective Practice of Business





7



Contribution to Positive Social Change





8



Review of the Professional and Academic Literature





8



Application to the Applied Business Practice





9



Theory of Discouraged Borrowers





10



Alternative Theories for the Theory of Discouraged Borrowers





13



Analysis of Potential Themes





14



Small Businesses





15



Small Business Financing





17



Maryland Small Business Development Financing Authority Programs





22



Credit Strategies





22



Information Symmetry in the Lending Process





27



Audited Financial Statements





28



The State of the Economy at the Time of This Study





28



Transition





31



Section 2: The Project





32



Purpose Statement





32



Role of the Researcher





32



Participants





34



Research Method





36



Research Design





37



Population and Sampling





38



Ethical Research





39



Data Collection Instruments





41



Data Collection Technique





42



Data Organization Technique





45



Data Analysis





45



Reliability and Validity





47



Reliability





47



Validity





47



Transition and Summary





49



References





51



Appendix A: Informed Consent Form





75



Appendix B: Interview Protocol





78

















List of Tables










List of Figures



SNC Internal Information




SNC Internal Information

v












Section 1: Foundation of the Study








Small businesses account for over 50% of all companies in the United States (U.S. Small Business Administration [SBA], 2018), having a positive effect on gross domestic product (Klimczak et al., 2017). Small businesses are an integral part of the economies of both developed and underdeveloped countries (Karadag, 2015); however, small business owners struggle to stay in operation longer than 5 years (SBA, 2018a). In 2013, 406,353 start-up businesses opened; in the same year, however, 46% of businesses closed (SBA, 2018b). A manager’s ability to acquire working capital could affect business continuity and reduce the failure rate (Leroy et al., 2015). Therefore, all business leaders need to have plans to acquire working capital (Lampadarios, 2016). The purpose of this multiple case study is to explore strategies that small business owners use to obtain a working capital line of credit for business continuity.






Background of the Problem

More than 500,000 small businesses constitute 97% of businesses in Maryland and employ more than one million people (SBA, 2018b). In 2014, 4,074 new small businesses started in Maryland, and in the same year, 3,730 closed, marking a large percentage of failed small businesses compared to those opened. External funding is necessary for the sustainability and growth of small businesses (Neagu, 2016). Access to financial resources is essential for business leaders to pay for operating expenses, debts, inventory, and business growth. Many business leaders attribute business failures to external factors, although internal management capabilities and approaches significantly impact business sustainability (Eggers & Lin, 2015). Poor management skills and an inability to access finances are the main reasons for business failure (Lee, 2016). Accordingly, I will explore effective Maryland small business owners’ effective strategies to obtain a working capital line of credit for business continuity for 5 years or longer.











Problem Statement

Insufficient access to funds, including lines of credit, causes 29% of small businesses to fail within the first 5 years of operation (Shabat, 2019). Small business owners encounter challenges obtaining a working capital line of credit (U.S. Federal Reserve Bank, 2017). The general business problem is that some small business owners cannot access working capital lines of credit, which threatens business survival through liquidity shortages, lost customers, and falling profitability. The specific business problem is that some small business owners lack strategies to obtain a working capital line o

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