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

Zhaoxing Su ()
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Zhaoxing Su: New Oriental Education & Technology Group

A chapter in Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025), 2025, pp 1183-1192 from Springer

Abstract: 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.

Keywords: SME Financing; Financial Constraints; Risk Management; Capital Structure; Financial Inclusion (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-874-5_135

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DOI: 10.2991/978-94-6463-874-5_135

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