Beck, and Kunt (2006) studied on access to finance by SMEs form a large part of private sector in many developed and developing countries. While cross country research removes doubt on a causal link between SMEs and economic development. It has been revealed that small firms face larger growth constraints and have less access to formal sources of external finance. Financial and institutional development helps alleviate SMEs growth constraints and increase their access to external finance. Specific financing tools such as leasing and factoring can be useful in facilitating greater access to finance even in the absence of well developed institutions. Results of Hyytinen, and Toivanen (2004) showed that government unreasonably allocates funds for firms that are dependent on external finance in Finland.
Hutchinson, and Xavier (2006) investigated role of internal finance on the growth of firms between a transitional economy such as Slovenia and a developed economy like Belgium. It was found that firms in Slovenia are more sensitive to internal financing constraints than their Belgium counterparts...
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...Business Research Papers, 5, 85-95.
Farooq, M. (2006). Credit Guarantee Scheme For SMEs. IBP – the knowledge institute journal, July 2006, 61-66.
State Bank of Pakistan (2009). Prudential Regulations for Small and Medium Enterprises Financing, Banking Policy and Regulations Department.
Budget for FY09 not released (2009, Feb 11). The News. Retrieved from http://www.thenews.com.pk
Baseline survey a roadmap for development of SME sector. (2010, May 19). The Nation. Retrieved from http://www.nation.com.pk
State Bank of Pakistan, SME Finance Department (2010, March). Development Finance Quarterly Report. Retrieved from http://www.sbp.org.pk/sme
Reserve Bank of India, (2009, August 27). Annual Economic Review. Retrieved from http://www.rbi.org.in/scripts
Small and Medium Enterprises Development Authority (2007). SME Policy 2007. Retrieved from http://www.smeda.org
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