Ramona Diana Leon, Laurențiu Mihai Treapăt, Anda Gheorghiu and Sergiu Octavian Stan
The paper aims to develop a microcredit evaluation model (MEM) which could serve as a useful tool for banks and NBFIs when SMEs’ economic and financial risks are evaluated.
Abstract
Purpose
The paper aims to develop a microcredit evaluation model (MEM) which could serve as a useful tool for banks and NBFIs when SMEs’ economic and financial risks are evaluated.
Design/methodology/approach
Based on the literature review, a set of 17 qualitative and quantitative prudential indicators is selected. Further, a calculation system is developed which relies on the multiple criteria analysis model elaborated by Altman (1968); starting from this, a matrix is developed and a rating system is built. The model is tested among six NBFIs which operate on the Romanian market; three of them are labeled by the Romanian Central Bank as the worst performers, while the other ones are qualified as the best performers. Data are collected from companies’ annual reports and also from the Ministry of Finance.
Findings
It proves that the MEM can serve as a useful tool for the national and international NBFIs’ risk assessment. It can anticipate NBFIs’ success or fall. Furthermore, its results can be guaranteed with a probability of 95 per cent, calculated through the VaR method. Last but not least, it can also be used by the international NBFIs which intend to enter in the Romanian market.
Originality/value
The present paper proposes an original model based on both quantitative and qualitative indicators organized in an integrative equation. The MEM helps both parties involved in the financial grant awarding process – NBFIs are able to better assess requests from SMEs, enabling them to increase the volume of granting, whereas SMEs are able to access money for development projects more easily.
Details
Keywords
Victor-Emanuel Ciuciuc, Andreea Bunica, Elena Adriana Biea, Laurentiu-Mihai Treapat and Tudor Edu
This paper explores the integration of sustainable development practices within today’s business management, emphasizing the managerial perspectives and strategies adopted to…
Abstract
Purpose
This paper explores the integration of sustainable development practices within today’s business management, emphasizing the managerial perspectives and strategies adopted to address economic, social, cultural, and environmental dimensions of sustainability and their organizational outcomes, namely performance and reputation.
Design/methodology/approach
Through a qualitative study involving in-depth interviews with twelve managers from various sectors, this research utilizes content analysis and Qualitative Data Analysis Software (AtlasTI) to map managerial insights and strategies. The study identifies key constructs and their impacts on organizational performance and reputation.
Findings
The study identifies a complex interplay between economic, social, environmental, and cultural management practices and their take on organizational performance and reputation in the current context and emphasizes the importance of leadership and regulatory frameworks in promoting sustainability.
Research limitations/implications
The study’s qualitative approach provides in-depth insights but may limit generalizability. Future research could employ quantitative methods to validate and extend these findings across different contexts and industries.
Originality/value
This study contributes to the sustainability and business management literature by providing a detailed examination of how Romanian managers perceive and operationalize sustainability. It underscores the importance of integrating sustainability into core business strategies and offers practical insights for managers and policymakers aiming to enhance sustainable business practices.