Title: Acquisition of additional debt capital by small and medium enterprises (SMEs): evidence from Canada

Authors: Kalinga Jagoda, Siriyama Kanthi Herath

Addresses: Bissett School of Business, Mount Royal University, 4825 Mount Royal Gate SW, Calgary, Alberta, Canada. ' School of Business Administration, Clark Atlanta University, 223 James P. Brawley Drive at Fair Street, Atlanta, GA 30314, USA

Abstract: The purpose of this research was to investigate the availability and acquisition of additional debt capital by small and medium enterprises (SMEs) in Newfoundland, to observe the constraints they encounter in securing debt capital, and to suggest measures to eliminate those constraints and enhance enterprise development. Data were collected from a sample of 79 SMEs that were operating in the area surrounding the city of Corner Brook, in Newfoundland. The findings indicated that a significant number of SMEs have experienced problems accessing debt financing, and the majority of firms rely on government as an alternative source of debt financing.

Keywords: debt capital; debt financing; small and medium-sized enterprises; SMEs; enterprise development; retention; business expansion; Canada; Newfoundland; Corner Brook; government funding; subsidies; management.

DOI: 10.1504/IJMED.2010.031545

International Journal of Management and Enterprise Development, 2010 Vol.8 No.2, pp.135 - 151

Published online: 10 Feb 2010 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article