Access to finance for small and medium enterprises in developing countries: key issues and options.

Abstract

Small and Medium Enterprises (SMEs) constitute an essential sector in developed and developing economies. Using evidence from extant literature, recent market trends, and an array of statistics from reputable organisations concerned with SME issues, this chapter unravels the myriad of challenges faced by SMEs in accessing finance, different financing options available, and diverse ways of removing fund access bottlenecks using technological, institutional, and governmental instruments. Additionally, the study discusses a catalogue of financing options that SMEs can deploy or combine to meet the business needs. The paper ends with a discussion of various strategies/mechanisms for removing SMEs’ financing barriers alongside future opportunities for more inclusive and sustainable funding access globally