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Barriers to Growth in SMEs

In: Venture Capital, Islamic Finance and SMEs

Author

Listed:
  • Mansoor Durrani
  • Grahame Boocock

Abstract

This chapter deals with the barriers to growth faced by SMEs. The focus here is on financing issues because access to credit, especially for new investment, has been a recurring constraint on the growth and development of smaller enterprises across the globe (Levy, 1993; Parker et al., 1995). The chapter then discusses other barriers affecting the SME sector, for example: the issues of critical concern for UK SMEs over recent years have been not only the cost and availability of finance but also market-related factors, namely the threat of competition and/or lack of demand (Burns, 2001). Finally, the chapter draws together the arguments as to why governments choose to intervene to assist SMEs.

Suggested Citation

  • Mansoor Durrani & Grahame Boocock, 2006. "Barriers to Growth in SMEs," Palgrave Macmillan Books, in: Venture Capital, Islamic Finance and SMEs, chapter 3, pages 20-34, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-62625-6_3
    DOI: 10.1057/9780230626256_3
    as

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