Economics, Econometrics and Finance
8 years ago

Access to Finance Crisis in Liberia Stifles SME Growth and Poverty Alleviation.

PROBLEM ANALYSIS OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN LIBERIA: ACCESS TO FINANCE PERSPECTIVE
Emmanuel J. Kaydor

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Small and Medium Enterprises (SMEs) in Liberia face challenges in accessing finance, hindering their growth and ability to create jobs. The main reason for this problem is the lack of collateral, making it difficult for SMEs to get loans from banks. The study suggests that agency problems and information asymmetry are the main reasons for credit providers to limit financing to SMEs. To address this issue, policies need to be implemented and regularly monitored to help SMEs access the finance they need to thrive and contribute to the economy.