What are the biggest obstacles to growth of SMEs in developing countries? - An empirical evidence from an enterprise survey

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• 作者：Yao Wang ^{wangyaoflora@gmail.com" class="auth_mail" title="E-mail the corresponding author}
• 关键词：SMEs ; Obstacles to growth ; Financing constraints ; Developing countries ; Firm characteristics ; Internal and external barriers
• 刊名：Borsa Istanbul Review
• 出版年：2016
• 出版时间：September 2016
• 年：2016
• 卷：16
• 期：3
• 页码：167-176
• 全文大小：385 K

文摘

SMEs are drivers of economic growth and job creation in developing countries. It is paramount to determine the factors that hinder their growth. This paper uses the Enterprise Survey from the World Bank which covers data from 119 developing countries to investigate the biggest obstacles SMEs are confronting and the determinants that influence the obstacles as perceived by enterprise managers. The results show that SMEs perceive access to finance as the most significant obstacle which hinders their growth. The key determinants among firms' characteristics are size, age and growth rate of firms as well as the ownership of the firm. The latter – the role of the state in financing SME – is particularly intriguing. External reasons for the financing dilemma are also examined. It is shown that the main barriers to external financing are high costs of borrowing and a lack of consultant support.