Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025)

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Micro, Small and Medium Enterprises (MSMEs) Financing Strategies

Authors
Jia Yu1, *
1Finance Faculty, Business School, Beijing Language and Culture University, Beijing, 100083, China
*Corresponding author. Email: yuvanessa751@gmail.com
Corresponding Author
Jia Yu
Available Online 3 July 2025.
DOI
10.2991/978-94-6463-748-9_63How to use a DOI?
Keywords
MSME; Financing strategy; Finance gap
Abstract

Micro, Small and Medium Enterprises (MSMEs) provide a solid foundation in global economy. The importance of them lies in many fields, such as economic growth, job creation, innovation, and fostering entrepreneurship. They make great contribution to local economies and overall industrial development. However, many of them have fallen into financing dilemma since the pandemic impact occurred. Due to the lack of sufficient collateral, credit score, financing channels and risk management, it is hard for MSMEs to get access to fund needed. Therefore, this study aims to research the factors that influence MSME financing, and give strategic suggestions based on narrowing their finance gap. Quantitative multiple linear regression analysis is used in this study. The findings indicate that the gap in enterprise finance can be significantly influenced by unmet potential financing demand, credit constraints, and profitability. Probable reasons resulting in these issues are limited financing channels, lack of good credit rating, insufficient credit supply provided by external or internal sectors. Thus, by innovating lending products, diversifying financing channels, with the financial support of governments and other institutions, MSMEs finance gap and trap can be narrowed.

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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Volume Title
Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
3 July 2025
ISBN
978-94-6463-748-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-748-9_63How to use a DOI?
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.

Cite this article

risenwbib
TY  - CONF
AU  - Jia Yu
PY  - 2025
DA  - 2025/07/03
TI  - Micro, Small and Medium Enterprises (MSMEs) Financing Strategies
BT  - Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025)
PB  - Atlantis Press
SP  - 559
EP  - 567
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-748-9_63
DO  - 10.2991/978-94-6463-748-9_63
ID  - Yu2025
ER  -