Methodology
The research question which was addressed during the research was financing difficulty and solutions for SME’s in China. Different methods were used to solicit data required for the research for it to be successful. Selections on the methods used were based on the nature of the study and its scope on the difficulties which small enterprises experience when sourcing for finance. The research used two main methodologies; qualitative research methodology and quantitative methodology and it adopted several data collection methods to ensure it captures all the required data/information for analysis and factual conclusion on the state of affairs when SME’s tries to source financing in China.
Research design
The research design which was used for the research was qualitative research and quantitative research methods. The use of both methods was important because it enabled the research to be broad and cover all the requirements of the research. The use of qualitative research enabled the research done to obtain an in-depth understanding of behavioral characteristics of all stakeholders in the development of SME’s investments in China. The main stakeholders who were involved in the research were the government, proprietors of the business, and financial institutions (Beiske, 2002). Each of the stakeholders has a role to play in the existence of SME’s in China.
The use of qualitative research method concentrated mainly on how the decisions of financing SME’s are being done. It did not take care of where or when the event took place. While the use of quantitative research was used for research that required statistical analysis and it used mathematical models to analyze its finding. The entire population would not be used for the research in China therefore I obtained a sample of the population to present the entire industry of SME’s to preset the country. The sample population which was used for the research was selected in an unbiased manner to ensure it is will provide a better presentation of the entire population.
Sampling Strategy
There are different sampling strategies which were used to obtain the sample population these included; random sampling and stratified sampling strategies. Use of random sampling ensured that a group of the entire population is selected to represent it in the research being done. Stratified sampling strategies is the one which was used it first subdivide the population to identifiable sectors such as entrepreneurs, government bodies and ministries, and financiers. The subdivided sectors were further divided to identifiable groupings such as entrepreneurs who have invested in cities or in rural areas. They were further divided to different regions which were used for the research. Each of these subdivided sectors is known as stratum it is in this stratum that the participants of the research were selected randomly.
Data collection methods
The data obtained during the research was very instrumental in the success of the research as it forms the basis of arguments which culminate to the findings of the research, its decision and conclusion. The data collections which I used were questionnaire, observation and reading documentations.
Use of questionnaire
Use of questionnaire was much successful as the research used both oral and written questionnaire to solicit the information required in the research. I used oral interview to carry out the research and it proved to be successful. Its main advantage is that when the research is being done one is able to have directs contacts with the interviewee and obtain first hand information. Both the interviewer and the interviewee would be able to clarify on issues of the research being done hence, being able to obtain information which is well elaborated and authentic. The most limiting factor of oral interview despite of its accuracy on date collection it is very slow because an interviewer would only inter view one person at a time and there is need to travel from on place to another sourcing interviewee (Milne, 2001). Due to this limitation the researcher decided it being fit to use written questionnaire.
The other method which was adopted was use of questionnaires which were distributed to the interviewee and were collected later at an agreed date. Use of questionnaire covered a large population at time as they would be distributed to different participants at a time and be collected later or at the same day depending on the willingness of the interviewer.
Observation and Participation in the operations
The researchers observed on the operations in SME’s industry and as well participated in most of its operations. Such date collection warranted the researchers to work in an SME establishment for a period of a minimum of two weeks as if they were in internship. Such an environment enabled the researchers to have a hand on experience on the operations in the industry which was essential in obtaining factual date on if the industry experience difficulties in sourcing financing. This method of date collection is the one which was referred to be very close to the reality to the situation of the research.
Reading documentation
Reading of documentations was done by studying different reports and documented facts about sourcing of finance for SME’s in financial institutions. The documentations which were mainly used were similar or more similar research of the same nature which would have been done in the same sector. The other sources of information/data were the financial reports / records of both SME’s enterprises and financial institutions in reference to financing of the research. Government policies and legislations which have been released recently also provided a reliable source of information on the role of government in support of SME’s access to financing.
Challenges anticipated/experienced
During the research it was anticipated that most people might resist participating in the research as it is realized with most research being done. However, it was evident that during the research participants were not much resistant to provide the information which was required. It was also foreseen that use of documentation to source for information would be characterized by errors which are inherited from the research which were done before. This was prevented by ensuring that the research was mainly done afresh without over reliance of any other research which was done there before. Participants of the research were also informed well in advance on its purpose which minimized chances of them resisting or providing false information. The participants were also allowed to provide the information required willingly without being influenced this ensured that the information got was authentic.
References
Beiske, B. (2002). Research Methods: Uses And Limitations Of Questionnaires, Interviews, And Case Studies. Manchester: University of Manchester
Milne, J. (2001). Questionnaires: Advantages and Disadvantages. Web.