Figure 8. Sources of funds for business expansion

2.2.7 Sources of funds for business expansion

Majority of the respondents funded their business expansion through bank loans followed by retained earnings. Enterprises in the manufacturing, agribusiness, and construction who indicated that they used retained earnings to finance business expansion were in the business for more than 10 years.

Based on the responses, it can be inferred that the tourism sector is the most dependent on bank loans to grow their businesses, purchase fix assets, and for working capital. The tourism enterprises are the most unlikely to grow organically through the use of retained earnings.

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Figure 8. Sources of funds for business expansion