Access to finance in small firms’ growth

Аннотация

Small sized enterprises (SSEs) play a huge role in addressing current socioeconomic challenges and expanding employment. A strong entrepreneurial culture is essential to ensure the competitiveness of all countries economy and economic growth in the future. SSEs are able to create a significant number of jobs in a short period of time, expand the tax base, contribute to the growth of national income and provide import-substituting products. In developed economies today, SSEs are an important engine of economic growth. Consequently, creating an enabling environment for entrepreneurship is of paramount importance for both the small sector and the economy as a whole. One of the most serious obstacles to small business development is limited access to finance. The lack of capacity and often the inability to raise external finance affects all stages of enterprise development, be it the formation, expansion or capital replacement stages. The problem of limited access to finance for SSEs has been discussed for quite some time.