International Business Management
ISSN: OnlineISSN: Print 1993-5250
Abstract
While credit ratings for big companies and public institutions are available in almost every country, the credit ratings for small and medium enterprises are very rare. Even more, the credit ratings for micro and small enterprises are not available despite their economic contribution in every country. This study aims at providing an initial journey of designing a credit risk model for micro and small enterprises. This study focuses on the exploration of literatures related to credit ratings for small, medium and large corporation as well as for public institution. These credit rating models are used as the basis of developing the credit rating model for micro and small enterprises. After considering the availability of types of data, sources of data and statistical approaches, logistic regression with five groups of independent variables is proposed as the appropriate credit rating modelling.
How to cite this article:
Bramantyo Djohanputro. Initial Journey of Designing Credit Rating for Micro and Small Enterprises.
DOI: https://doi.org/10.36478/ibm.2021.269.278
URL: https://www.makhillpublications.co/view-article/1993-5250/ibm.2021.269.278