A Study of Financing Issues in Small Medium Enterprises

By

ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.



DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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Table of Contents

ACKNOWLEDGEMENTii

DECLARATIONiii

CHAPTER 01: INTRODUCTOIN1

Background of the Study1

Research Objectives1

Research Questions1

Justification of the Chosen Topic2

CHAPTER 02: LITERATURE REVIEW3

SMEs Financing Needs4

CHAPTER 03: RESEARCH METHODOLOGY8

Data Collection Technique8

Secondary Research8

Advantages of Secondary Research8

Disadvantages of Secondary Research9

Research Design9

Search Technique11

Inclusion and exclusion criteria11

REFERENCES13

CHAPTER 01: INTRODUCTOIN

Background of the Study

This dissertation provides insight into the financing issues in small and medium enterprises (SMEs) and how these issues affect their performance. The importance of SMEs and their structuring role in the economy in developing countries has been extensively studied in the past years. Several authors have studied specifically SME financing. As innovative practices in SME financing currently multiply, most notably with the help of the growing alternative lending industry, there have been surprisingly few academic efforts to update and assess the financing situation of SMEs.

Research Objectives

The main objective of the study is to evaluate SMEs access to financing and assess the recent efforts of the alternative lending industry to better serve these groups financially. Under the light of above mentioned objective writer wants to accomplish the following objectives.

To better understand SMEs, their financing needs and challenges as well as recent financial innovations in the field by reviewing publications on the issue.

To provide a brief evaluation of financial innovations and their impact on financing needs of SMEs.

Research Questions

What are the financing issues in small medium enterprises?

What channels do SMEs usually adopt to full fill their financing needs?

What has been the impact of the financing innovations on financing needs of SMEs?

Justification of the Chosen Topic

This study answers the research questions by reviewing the relevant literature that will be great contribution to existing literature. The research provide some insights on some of the current financing challenges facing by SMEs and point to some possible solutions. Such an assessment provides practitioners, local financial providers, alternative lenders, donors, sustainable trade certifiers and technical assistance providers, helpful feedback on financing practices as well as on the challenges and opportunities that SMEs face.



CHAPTER 02: LITERATURE REVIEW

There is no universal definition of SMEs; definitions of what constitute a SME vary widely from country to country with different measures of size depending on their level of development. The most commonly used metric is the total number of employees, although total investment and sales turnover are also often mentioned. The International Finance Corporation (IFC) SME database uses the following definition:

•Micro business 0-4 employees

•Small business 5-49 employees

•Medium business 50 - 250 employees

SMEs are therefore ...