Discussions, research and analysis are as intense as problematic is the issue of SME (small and medium-sized enterprises) financing globally. Despite frantic efforts made by the policymakers towards solving financial constraints facing the SMEs, the problem of restricted access to "timely and adequate" credit continues to persist, leaving millions of SMEs cash strapped and seriously limiting their prospects for growth. Evidence from Asia-Pacific countries shows that financing barriers result in an average decline of 10 per cent in the growth of small enterprises compared to 6.0 per cent for their large counterparts. A simple solution to this intractable problem is not possible without adoption of a holistic approach which must hit the core issues causing it from both supply and demand sides. An attempt is made here to provide a clue towards a sustainable solution.
