Financing Issues and Solutions for Small and Medium-sized Enterprises (SMEs)

DOI

10.2991/978-94-6463-874-5_135How to use a DOI?

Keywords

SME Financing; Financial Constraints; Risk Management; Capital Structure; Financial Inclusion

Abstract

This study presents a systematic examination of financing challenges confronting Small and Medium-sized Enterprises (SMEs), with particular focus on the structural constraints and risk management deficiencies in their capital acquisition processes. Through an integrative methodology combining literature review and case study analysis, the research investigates prevalent financing channels including bank credit, equity financing, and bond issuance, while evaluating their respective efficacy for SMEs. The theoretical framework draws upon authoritative financial concepts from Encyclopedia Britannica to establish precise definitions of key financing mechanisms. Empirical findings demonstrate that SME financing difficulties predominantly stem from two interrelated factors: limited access to diversified funding sources and inadequate capacity to mitigate financial risks. Case analyses reveal how these constraints manifest differently across industries, with technology firms facing distinct challenges compared to manufacturing or service-sector SMEs. The study further identifies critical mismatches between existing financing solutions and SME operational realities, particularly regarding collateral requirements, credit assessment methodologies, and repayment structures. These findings contribute to ongoing academic discussions about SME financial inclusion by providing evidence-based insights into the root causes of financing gaps. The research concludes with policy recommendations for developing more adaptive financing ecosystems that account for SME heterogeneity while maintaining financial system stability.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Zhaoxing Su
PY  - 2025
DA  - 2025/11/03
TI  - Financing Issues and Solutions for Small and Medium-sized Enterprises (SMEs)
BT  - Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
PB  - Atlantis Press
SP  - 1183
EP  - 1192
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-874-5_135
DO  - 10.2991/978-94-6463-874-5_135
ID  - Su2025
ER  -