Table 3 Variable definitions

Credit constrained

Dummy variable equal to 1 if the firm declared a positive demand for bank financing in the past 2 years, but it did not apply because of possible rejection, it applied and its loan application was rejected, it applied and got less than 75% of the requested amount, or it refused the loan because the cost was too high

Loan application denied

Dummy variable equal to 1 if in the past 2 years the firm applied for a loan and its loan application was rejected

Credit rationed

Dummy variable equal to 1 if in the past 2 years the firm applied for a loan and it got less than 75% of the requested amount

Refused due to high cost

Dummy variable equal to 1 if in the past 2 years the firm applied for a loan and it refused the loan because the cost was too high

Discouraged from applying

Dummy variable equal to 1 if the firm declared a positive demand for bank financing in the past 2 years, but it did not apply because of possible rejection

Perceived access to finance

Composite index constructed using polychoric principal component analysis (PPCA) comprising of Likert scale MSMEs responses to perceived access to finance statements

Financial literacy

PPCA composite of FL1, FL2, FL3, FL4, FL5, FL6, FL7, FL8, FL9, FL10, FL11, FL12, FL13

ICTU

Dummy variable equal to 1 if a firm has basic/advance usage of IT

Digitization

Dummy variable equal to 1 if the firm used an online trade finance platform to apply for financing in the past 2 years

Outlook better

Dummy variable equals to 1 if general economic outlook, insofar as it affects the availability of external financing is better (improved)

Capital Better

Dummy variable equals to 1 if outlook, insofar as it affects the availability of capital is better (improved)

Hcredit_better

Your enterprise’s credit history in other words, your credit worthiness, that is your track record over the past 2 years (improved)

Activity_1

Dummy variable equal to 1 if a firm deals in food and beverages

Activity_2

Dummy variable equal to 1 if a firm deals in clothing and apparel

Activity_3

Dummy variable equal to 1 if a firm deals in furniture, electronics and/or home appliances

Activity_4

Dummy variable equal to 1 if a firm deals in chemical products (pharmaceutical, perfumes, beauty products, construction or industrial material)

Activity_5

Dummy variable equal to 1 if a firm deals in transportation equipment

Activity_6

Dummy variable equal to 1 if a firm deals in machinery and mechanical or electrical equipment

Activity_7

Dummy variable equal to 1 if a firm deals in optical, photographic, cinematic products

Activity_8

Dummy variable equal to 1 if a firm deals in other activities

Size_1

Dummy variable equal to 1 if a firm has 1 employee to 9 employees

Size_2

Dummy variable equal to 1 if a firm has 10 employees to 49 employees

Size_3

Dummy variable equal to 1 if a firm has 50 employees to 249 employees

Size_4

Dummy variable equal to 1 if a firm has more than 250 employees

Turn_1

Dummy variable equal to 1 if had a turnover under QAR 1 million

Turn_2

Dummy variable equal to 1 if had a turnover from QAR 1 million to 5 million

Turn_3

Dummy variable equal to 1 if had a turnover from QAR 5 million to 25 million

Turn_4

Dummy variable equal to 1 if had a turnover from QAR 25 million to 50 million

Turn_5

Dummy variable equal to 1 if had a turnover over QAR 50 million

Turn_6

Dummy variable equal to 1 if the firm was not sure or preferred not to reveal turnover figures

Age_1

Dummy variable equal to 1 if a firm was established less than or equal to 2 years ago

Age_2

Dummy variable equal to 1 if a firm was established between 2 up to and including 5 years ago

Age_3

Dummy variable equal to 1 if a firm was established between 5 up to and including 10 years ago

Age_4

Dummy variable equal to 1 if a firm was established more than 10 years ago

Own_1

One owner only, that is yourself or another natural person

Own_2

Family (i.e., more than one owner)

Own_3

Other enterprises or business associates

Own_4

Member’s of royal family

Own_5

Venture capital enterprises or business angels (e.g., capital from individual investors)