Impact of Relationship on Access to Bank Financing for Microenterprises : Empirical Evidence from an Emerging Economy

In this study hypotheses were tested regarding the impact of relationship on access to bank financing for micro enterprises. The empirical analysis was conducted using data collected from the banks of Bangladesh and micro enterprises operating in Bangladesh. The empirical results suggest that micro enterprises in Bangladesh has better access to bank financing as the year of relationship increases with the financing bank. Our findings also suggest that, the length of relationship is crucial factor for the micro enterprises in Bangladesh in receiving financing irrespective of bank ownership structure