Small and Medium-Sized Enterprises Financing: A Review of Literature | Desklib

Access to finance is crucial for SMEs' growth and profitability. This paper reviews the literature on SME financing sources, taking into account SME characteristics and owner-managers' financial behavior. Financing methods vary from internal sources to formal external sources. The paper discusses the effects of SME characteristics on financial behavior and the different financing strategies required at different stages of the firm's growth cycle. The paper also compares the growth life cycle model with the pecking order theory. Keywords: SMEs, financing.