Access to finance is a key determinant for business start-up, development and growth for Small and Medium sized enterprises (SMEs) and they have very different needs and face different challenges with regard to financing compared to large businesses. The latter have ready access to equity capital markets, which are not accessible to the vast majority of small businesses. The lack of equity capital invested in small firms makes these businesses more reliant on other sources such as bank lending and other types of financial products.
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