An Investigation of Innovative Finance

to Support Business Development and

Sustainability in SMEs in Chemical
Logistics Industry
FE7066 Data Analysis for Global Business

MARCH 17, 2023

GUILDHALL BUSINESS & LAW
London Metropolitan University
 1. Introduction

The Corporate Social Responsibility (CSR) has been considered as a process where companies
integrate social and environmental concerns into their business and interactions with
stakeholders. To achieve business development and sustainability, more and more companies are
investing in CSR related management control system to create value for social and business, and
to reduce environmental damage.

The research questions of this study

1) What innovative finance mechanisms are available in the financial markets?

2) What are the financial problems facing the chemical logistics industry?
3) What can chemical logistics companies do to achieve sustainable development?
4) What are possible solutions for innovative finance for chemical logistics business
development and sustainability?

2. Data Analysis
Demographic Information

Table 1 : Gender

Frequency Percent Valid Percent Cumulative

Percent

Male 121 79.6 79.6 79.6

Female 23 15.1 15.1 94.7

Valid
Prefer no to say 8 5.3 5.3 100.0

Total 152 100.0 100.0

The table shows that out of the 152 respondents, 121 (79.6%) identified as male, 23 (15.1%)
identified as female, and 8 (5.3%) preferred not to say.

Employees

Frequency Percent Valid Percent Cumulative

Percent

Less than 50 8 5.3 5.3 5.3

Between 50 to 100 10 6.6 6.6 11.8

Between 150 to 200 6 3.9 3.9 15.8

Valid Between 200 to 250 14 9.2 9.2 25.0

Between 250 to 300 30 19.7 19.7 44.7

More than 300 84 55.3 55.3 100.0

Total 152 100.0 100.0

The table shows that out of the 152 respondents, the majority (84, or 55.3%) worked for
companies with more than 300 employees. The next most common response was "between 250
to 300 employees" (30, or 19.7%). The least common response was "between 150 to 200
employees" (6, or 3.9%). The "Percent" column shows the percentage of respondents in each
category out of the total number of valid responses.

What are the financial problems facing the chemical logistics industry?

Table 3 : Financing Problems

Frequency Percent Valid Percent Cumulative

Percent

Valid Limited sources of finance 44 28.9 28.9 28.9

 Difficult to access to bank
74 48.7 48.7 77.6
loans

Difficult to access to local

22 14.5 14.5 92.1
government support

High finance cost if using

12 7.9 7.9 100.0
factoring

Total 152 100.0 100.0

Out of the 152 respondents, the most common financing problem cited was "difficult to access
bank loans," with 74 respondents (or 48.7%) selecting this option. The next most common
problem was "limited sources of finance," with 44 respondents (or 28.9%) selecting this option.
The "Percent" column shows the percentage of respondents in each category out of the total
number of responses.
Chi Square

Financing Problems * Gender Crosstabulation

Count

Gender Total

Male Female Prefer no to say

Limited sources of finance 37 5 2 44

Difficult to access to bank

58 11 5 74
loans
Financing Problems Difficult to access to local
15 6 1 22
government support

High finance cost if using

11 1 0 12
factoring
Total 121 23 8 152

This crosstabulation table shows the count of financing problems by gender.

Limited sources of finance: Among the respondents who reported facing this problem, the
majority were male (37) compared to female (5) and prefer not to say (2) respondents.

Difficult to access bank loans: This financing problem was reported more frequently by male
respondents (58) compared to female (11) and prefer not to say (5) respondents.

Difficult to access local government support: This financing problem was reported by 15 male
respondents, 6 female respondents, and 1 prefer not to say respondent.

High finance cost if using factoring: This financing problem was reported by 11 male
respondents and 1 female respondent.

Overall, the table suggests that male respondents more frequently reported facing financing
problems compared to female respondents. However, it's important to note that the sample size
of female respondents is relatively small (23), so it may not be representative of the overall
population.
 Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 4.641a 6 .591

Likelihood Ratio 4.951 6 .550
N of Valid Cases 152

a. 6 cells (50.0%) have expected count less than 5. The minimum expected count is .63.

The Chi-Square test shows that there is no significant association between financing problems
and gender (Pearson's chi-square = 4.641, df = 6, p = 0.591). This means that the distribution of
responses to financing problems is similar across all genders.

What can chemical logistics companies do to achieve sustainable development?

Seeking Innovative Finance

Frequency Percent Valid Percent Cumulative

Percent

Yes 62 40.8 40.8 40.8

No 78 51.3 51.3 92.1

Valid
Prefer not to say 12 7.9 7.9 100.0

Total 152 100.0 100.0

Based on the data presented, 40.8% of the respondents reported seeking innovative finance,
while 51.3% reported not seeking innovative finance. The remaining 7.9% preferred not to say.
This information suggests that a significant proportion of the surveyed population is open to
exploring innovative finance options, while the majority has not yet pursued such alternatives.
The reasons for this may be varied and could be explored further through additional analysis or
qualitative research.

How to achieve BD and Sustainability

Frequency Percent Valid Percent Cumulative

Percent

Valid Standardized procedure to

89 58.6 58.6 58.6
every customer complaint.

Monitor potential negative 38 25.0 25.0 83.6

impacts of our activities on
the community
. Continually strive to
improve the quality of our 3 2.0 2.0 85.5
services

Encourages our employees

to actively participate in
11 7.2 7.2 92.8
initiatives for business
development.

Committed to reducing the

amount of energy and
11 7.2 7.2 100.0
materials wasted in our
company

Total 152 100.0 100.0

The survey respondents were asked about how to achieve business development and
sustainability, and the following responses were obtained:
Standardized procedure to every customer complaint: 58.6%
Monitor potential negative impacts of our activities on the community: 25%
Continually strive to improve the quality of our services: 2%
Encourages our employees to actively participate in initiatives for business development: 7.2%
Committed to reducing the amount of energy and materials wasted in our company: 7.2%
Most of the respondents (58.6%) believe that implementing a standardized procedure to every
customer complaint is a key factor in achieving business development and sustainability.
Monitoring potential negative impacts of activities on the community is also considered
important by a quarter of the respondents (25%). Encouraging employees to participate in
business development initiatives and reducing energy and materials waste in the company are
considered important by a smaller proportion of the respondents (7.2% each). Only 2% of the
respondents stated that continually improving the quality of services is important for achieving
business development and sustainability.
What innovative finance mechanisms are available in the financial markets?

Innovative Finance Mechanisms

Frequency Percent Valid Percent Cumulative

Percent
Micro-contributions 96 63.2 63.2 63.2

Taxes 20 13.2 13.2 76.3

Public-private partnerships 15 9.9 9.9 86.2

Valid Market-based financial
10 6.6 6.6 92.8
transaction

None of the above 11 7.2 7.2 100.0

Total 152 100.0 100.0

Out of the 152 respondents, the majority (63.2%) chose "Micro-contributions" as their preferred
innovative finance mechanism. "Taxes" and "Public-private partnerships" were selected by
13.2% and 9.9% of the respondents, respectively. "Market-based financial transaction" was the
choice of 6.6% of the respondents. Only a small percentage (7.2%) chose "None of the above",
indicating that most respondents have some knowledge or preference for innovative finance
mechanisms.

Descriptive Statistics

N Mean Std. Deviation

Innovative Finance
152 1.82 1.273
Mechanisms
Valid N (listwise) 152

The table shows the descriptive statistics for the variable "Innovative Finance Mechanisms"
based on the sample of 152 respondents.
What are possible solutions for innovative finance for chemical logistics
business development and sustainability?

Descriptive Statistics

N Mean Std. Deviation

Funds raised($000) 152 433.17 373.321

Valid N (listwise) 152

The descriptive statistics show that the sample size for the variable "Funds raised ($000)" is 152.
The mean value of funds raised is $433,170 and the standard deviation is $373,321. This
suggests that there is a wide variation in the amount of funds raised among the sample
respondents.

Company Performance

Frequency Percent Valid Percent Cumulative

Percent

Increased in investments in
risk management control 18 11.8 11.8 11.8
system

Improved work conditions

86 56.6 56.6 68.4
and safety
Valid
Improved working efficiency 21 13.8 13.8 82.2

Secured growth in business 16 10.5 10.5 92.8

Effective business
11 7.2 7.2 100.0
management

Total 152 100.0 100.0

This table shows the frequency, percent, valid percent, and cumulative percent for the responses
to the question about company performance. The valid responses are:

Increased investments in risk management control system: 18 responses (11.8%)

Improved work conditions and safety: 86 responses (56.6%)

Improved working efficiency: 21 responses (13.8%)

Secured growth in business: 16 responses (10.5%)

Effective business management: 11 responses (7.2%)

The total number of valid responses is 152, with no missing data. The cumulative percent
column indicates the running total of valid percent. For example, 68.4% of respondents reported
improved work conditions and safety or a higher performance in this area.

Solutions for Business Development

Frequency Percent Valid Percent Cumulative

Percent

Better balance sheet

104 68.4 68.4 68.4
management
Smart investment in the best
30 19.7 19.7 88.2
logistics assets

Valid Enhance protection and

7 4.6 4.6 92.8
security

Investments in logistics
11 7.2 7.2 100.0
automation

Total 152 100.0 100.0

f the 152 respondents, 104 (68.4%) selected "Better balance sheet management" as a means of
achieving better logistics performance. 30 (19.7%) selected "Smart investment in the best
logistics assets," 7 (4.6%) selected "Enhance protection and security," and 11 (7.2%) selected
"Investments in logistics automation." The cumulative percentages show the proportion of
respondents who selected each option up to that point.

3. Conclusion

According to the research, most respondents encountered financing issues, with limited sources
of finance being the most significant issue. Access to bank loans and municipal government
assistance has also proven difficult. However, only a small proportion of respondents explored
innovative financing mechanisms to address these issues. Most respondents felt that standardized
procedures for handling every customer complaint and monitoring potential negative impacts on
the community were critical to achieving company development and sustainability. Furthermore,
better working conditions and safety have been identified as crucial factors in improving
company performance. Better balance sheet management and smart investments in the finest
logistics assets were viewed as critical factors to improve business in logistics and supply chain
management.