APPENDIX

Questionnaire:
Financing Preference and Practice of Nepalese SMEs

Dear Respondent,

I am Bhabish Thapa, a student of Masters of Finance & Control degree in School of

Management, Tribhuvan University (SOMTU). As a part of course requirement, I am
conducting survey on, “Financing Preference and Practice of Nepalese SMEs” for my
Graduate Research Project. The survey requires information filled in the questions
asked below. I highly appreciate your cooperation and also kindly request you to
provide answers as accurately as possible so that the research results will be accurate
and its findings are valuable for all. I assure you your responses will be highly
confidential and will be used only for the research purpose. The time for your
response would be tentatively 3-4 minutes.
Socio Demographic Profile

1. Age in years: please the appropriate option

a) 20-30☐ b) 31-40☐ c) 41- 50☐
2. Gender of the respondent
a) Male ☐ b) Female ☐
3. Education?
a) School☐ b) University Certificate☐ c) None☐
4. Total Experience of running a business firm? (In years)
a) 0-3 Years☐ b) 3-6 Years☐

c) 6-10 Years☐ d) 10-15 Years☐

e) More than 15 Years☐
General Characteristics of the Firm.
Basic Information of your organization.
1. Legal Status of your firm? *

a) Sole Proprietorship ☐ b) Partnership☐

c) Private Limited ☐

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2. Establishment of the firm?
a) 0-5 Years ☐ b) 5-10 Years ☐

c) 10-15 Years ☐ d) 15 Years and more ☐

3. Approximate value of your Firm Assets?
a) Less than 10 Crore ☐ b) 10-25 Crore ☐
4. Core Business of your firm?
a) Manufacturing ☐ b) Service ☐ c) Trading ☐

Your Involvement in SME

(Mode of acquisition and motive of starting/involving in the business)
1. Legal Status of your firm? *
a) Inherited ☐ b) Purchased☐
c) Started from scratch☐
2. Your motive for involvement in business?
a) Entrepreneurship ☐ b) Expansion ☐
c) After college with social pressure ☐ d) other ☐

Rank the preferences

1= Very low preference, 2= Low Preference, 3= neither low or high preference,
4= Highpreference, 5= Very high preference
1. Preference of Financing.
(Short term= Less than 1-year, Medium term= 1-5 years, Longterm= 5
years and more) *
S.N 1 2 3 4 5

1 Short term financing (Less 12 24 33 35 31

than 1year)
2 Medium term financing (1-5 32 11 25 31 26
years)
3 Long term finance (5 12 31 25 30 27
years andmore)

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2. Financing Preference of SMEs.
1 2 3 4 5

1 Owner’s Fund 34 21 14 23 33

2 Retained Earnings 42 23 13 26 21

3 Short Term Bank Loan 52 26 21 12 10

4 Bank Overdraft 12 19 24 34 36

5 Cash Credit 26 21 23 13 42

6 Long-Term Bank Loan 15 20 24 32 34

7 Long Term Government 12 20 25 26 42

Scheme
8 Trade Credit 19 16 30 22 38

9 Money Lenders 12 15 27 34 25

10 Family and Friends 14 16 23 42 30

11 Venture Capital 12 18 21 40 34

12 Business Angels 16 14 19 34 42

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3. Financing practice by your firm.
Click on the box according to your usage. 1=not at all used, 2=somewhat used,
3=moderately used, 4=highly used, 5=extremely used.

1 2 3 4 5
1 Owner’s Fund 22 12 27 24 40
2 Retained Earnings 21 18 24 26 36

3 Short Term Bank Loan 22 25 17 14 25

4 Bank Overdraft 12 21 23 32 37
5 Cash Credit 14 23 15 37 36
6 Long-Term Bank Loan 21 13 17 24 49
Long Term
7 16 12 24 31 42
Government Scheme
8 Trade Credit 16 14 25 27 43
9 Money Lenders 27 23 12 31 32
10 Family and Friends 31 22 13 23 36
11 Venture Capital 22 12 17 29 45
12 Business Angels 13 23 12 17 60

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4. Please specify your level of agreement and disagreement associated with following
statemen

Not at Somew Modera Highl Extrem

S.
Statements (Practice) all hat tely y ely
N
used used used used used
1 2 3 4 5
I am using my own fund to run
1 22 21 35 24 23
my business.
I am using income from
2 24 23 22 35 21
business for my organization.
Short terms loans are my source
3 16 19 25 29 36
of finance for my business.
I am using Bank Overdraft
4 14 21 12 31 47
funding for my business.
I am using Cash Credit for my
5 17 21 24 26 37
business.
I am using Bank Loan fund for
6 27 23 12 31 32
my business.
I am using Government Grant
7 31 22 13 23 36
scheme funds for my business.
I am using Trade Credit funding
8 22 12 17 29 45
for my business.
I am using Money Lenders
9 22 12 27 24 40
funds for my business.
I prefer to use borrowings from
1
Family & Friends for my 12 15 27 34 25
0
business.
I prefer to use Venture
1
Capital funding for my 14 16 23 42 30
1
business.
1 I prefer to use Business Angels
12 18 21 40 34
2 funding for my business.

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 1. Please specify your level of agreement and disagreement associated with
followingstatements. Please appropriate option.

S. Strongly Disa Neu Ag Strongly

Statements (Preferences)
N Disagree gree tral ree Agree
1 2 3 4 5
I mostly prefer my own fund to run
1 34 21 14 23 33
my business.
I prefer to use income from business
2 42 23 13 26 21
for my organization.
Short terms loans are best funding
3 52 26 21 12 10
source for my business.
I prefer to use Bank Overdraft funding
4 12 19 24 34 36
for my business.
I prefer to use Cash Credit funding for
5 26 21 23 13 42
my business.
I prefer to use Bank Loan funding for
6 15 20 24 32 34
my business.
I prefer to use Government Financing
7 12 20 25 26 42
Scheme funds for my business.
I prefer to use Trade Credit funding
8 19 16 30 22 38
for my business.
I prefer to use Money Lenders funds
9 12 15 27 34 25
for my business.
I prefer to use borrowings from
10 14 16 23 42 30
Family & Friends for my business.
I prefer to use Venture Capital
11 16 14 19 34 42
funding for my business.

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