Financial Structures of Swiss SMEs in the manufacturing industry

Table of Contents

1. Introduction

1.1. Research Objectives

1.2. Structure of the Thesis

1.3. Research Question

2. Literature Review

2.1. Definition of SMEs

2.2. Growth stages and the impact of age and size of a company

2.3. Finance and Capital Structure of SMEs

2.3.1. Relevant Theories

2.3.2. Financial Instruments

2.4. Market Characteristics

2.4.1. SME Switzerland

2.4.1.1. Employment and Industry Characteristics

2.4.1.2. Financial Structures

2.5. Conceptual Framework

3. Research Methodology

3.1. Research Question and Hypotheses

3.2. Research Design

3.3. Sampling Strategy

3.4. Data Collection

3.4.1. Quantitative Research (online survey)

3.4.2. Qualitative Research (interviews)

3.5. Data Analysis

3.5.1. Triangulation

3.6. Limitations and Critical Reflections

3.7. Researcher’s Role

3.8. Ethical Considerations

4. Outcomes

4.1. What is a typical financial structure of SMEs in Switzerland?

4.1.1. Summary

4.2. Does firm size affect SMEs’ financial decision making?

4.2.1. Summary

4.3. Does employment growth affect SMEs’ financial decision making?

4.3.1. Summary

4.4. How satisfied are SMEs with their financial structure? What would they improve and why?

4.4.1. Summary

5. Conclusion

5.1. Reflection on the Research Question

5.2. Other Findings

5.3. Contribution to Literature and Practice

5.4. Insights for Further Research

Research Goal and Themes

This master thesis investigates the financial structures of Swiss small and medium-sized enterprises (SMEs) within the manufacturing industry to identify the key factors influencing their financial decision-making processes.

• Analysis of financial instruments utilized by Swiss manufacturing SMEs.
• Evaluation of the impact of firm size and age on financial strategies.
• Examination of the relationship between employment growth and financial choices.
• Assessment of SME satisfaction levels regarding bank loans and existing financial structures.
• Exploration of the "financing dilemma" and the use of the pecking order model in the Swiss context.

Excerpt from the Book

Summary of Chapters

1. Introduction: This chapter introduces the importance of SMEs in the Swiss economy and outlines the research objectives, the structure of the thesis, and the core research question.

2. Literature Review: This section provides a theoretical foundation by defining SMEs, discussing growth stages, and reviewing existing theories on capital structure and financial instruments.

3. Research Methodology: This chapter details the mixed research approach, including the sampling strategy, the use of online surveys and semi-structured interviews, and the data analysis methods employed.

4. Outcomes: This section presents the empirical findings derived from the collected data, addressing the sub-questions regarding financial structures, firm size, growth impact, and satisfaction.

5. Conclusion: This final chapter synthesizes the research findings, reflects on the research question, provides contributions to existing literature, and suggests areas for future research.

Keywords

SMEs, SME financing, financial instruments, bank relationship, financial structure, retained earnings, manufacturing industry, Swiss economy, capital structure, equity, growth stages, pecking order model, bank loans.

Frequently Asked Questions

What is the core focus of this research?

The research explores the financial structures and decision-making processes of small and medium-sized enterprises (SMEs) specifically within the Swiss manufacturing industry.

What are the central thematic areas covered?

The study centers on financial instruments, the influence of firm size and growth on financial decisions, and the overall satisfaction of SMEs with their current financing methods.

What is the primary research question?

The central guiding question of this thesis is: "Which factors influence SMEs in their financial decision making?"

Which methodology was applied?

The author utilized a mixed research approach, combining quantitative data from an online survey sent to 1'004 SMEs with qualitative insights from 12 semi-structured interviews with industry experts and SME representatives.

What topics are addressed in the main body?

The main body covers the literature review of financial theories, the conceptual framework of SME financing, the empirical methodology, and the analysis of survey and interview outcomes regarding financing behaviors.

What are the key terms that define this work?

Key terms include SME financing, capital structure, bank relationships, manufacturing industry, retained earnings, and financial instruments.

Does the study confirm the existence of a "financing gap" for Swiss SMEs?

The findings indicate that a financing gap is nearly non-existent for the examined Swiss manufacturing SMEs, as most companies maintain a strong equity-based financing strategy.

Why do SMEs prefer retained earnings over other financial instruments?

According to the research, SMEs prioritize retained earnings primarily to maintain independence, stay flexible in decision-making, and avoid the complications and costs associated with external interest-bearing debt.