Strategies SMEs in the UK use to overcome capital problems when managing innovation programs

Topic 

Strategies SMEs in the UK use to overcome capital problems when managing innovation programs

Instructions 

Write a literature review strategies SMEs in the UK use to overcome capital problems when managing innovation programs

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UK SME firms have faced myriad problems in accessing finance. Since the 1930s, one of the key drawbacks to SME growth and development has been the inability to access adequate funding (Brown and Lee, 2014), and this challenge has remained a key concern for policymakers in the UK for nearly a century. Indeed, the literature provides that start-up firms encounter recurrent difficulties in accessing capital to finance development programs (Owen, Botelho, and Anwar, 2016).

This problem in the UK has intensified since the advent of the financial crisis as it resulted in stringent monetary policy, particularly on lending (Cowling, Liu, and Ledger, 2012). In particular, the decision-making structure was centralized, resulting in a more systematic evaluation of SMEs’ creditworthiness, increasing the strength of large firms at the expense of smaller firms (Rahman, Rahman, and Belás, 2017).

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