Research

Small and medium enterprises (SMEs) play a vital role in the economy of many countries in the world due to their importance in growth, job creation, innovation, international trade, and balanced regional development. At the same time, they face significant challenges. One of them is access to sustainable and affordable finance, a limitation that can curtail their ability to survive and grow. The consequences of such limitation became evident during the pandemic, when cashflows dried up and many SMEs could not survive without government support. The conditions for SMEs may also worsen as monetary policy tightens and interest rates go up.