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Financial Constraints and Small and Medium Enterprises: A Review*
Author(s) -
Bakhtiari Sasan,
Breunig Robert,
Magnani Lisa,
Zhang Jacquelyn
Publication year - 2020
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/1475-4932.12560
Subject(s) - productivity , government (linguistics) , business , face (sociological concept) , finance , key (lock) , small and medium sized enterprises , economics , macroeconomics , computer science , social science , linguistics , philosophy , sociology , computer security
We review the literature on financial constraints and the performance of small and medium enterprises (SMEs). We consider the important role that SMEs play in the economies of Australia and the OECD. We examine the role of financial constraints in SME growth, with emphasis on business cycles and credit access. We discuss issues that SMEs face in accessing financial resources for expansion. We look at the literature that evaluates the impact of financial constraints on key outcomes: employment, productivity and wages. We review key policy debates and consider where government involvement might be appropriate.