‘Credit crunch’ and Small- and Medium-sized Enterprises: Aspects affecting survival

Towards a new framework for SMEs success: a literature review

“…This argument is further supported by empirical evidence that firms with higher availability of external finance (high leverage firms) grow much faster than low leverage firms (Becchetti and Trovato, 2002). As a result, it is becoming clear that SMEs need to control cash flow and maintain an open dialogue with their banks and investors (Ma and Lin, 2010).…”

Success in challenging times: Key lessons for UK SMEs

“…The impact of a recession, however, is to create a 'credit crunch', which is triggered by a reduction in turnover and cash flow. This is exacerbated by businesses slowing down their payments resulting in a reduced risk status for the businesses [2]. In this area, SMEs with tangible assets (such as manufacturing) fare better than those without (services).…”

“…In this area, SMEs with tangible assets (such as manufacturing) fare better than those without (services). No wonder it is acknowledged that SMEs need to keep a tight rein on cash flow and maintain an open dialogue with their banks [2].…”

“…The UK Department for Business Innovation and Skills 1 estimated there were approximately 4.5 million small businesses in the UK providing 13.7 million jobs, equating to half the private sector workforce in 2011 [2]. However, while Small and Medium Enterprises (SMEs) 2 are of importance, it is their durability that can be considered of greater significance [3].…”

Exploring the performance of small- and medium-sized enterprises through the credit crunch

“…UK Government has just introduced the National Loan Guarantee Scheme in order to increase lending to SME, (HM Treasury, 2011). They create innovation, provide jobs and contribute to Gross Domestic Product (Ma and Lin, 2010).…”