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Small and medium enterprises (SMEs) make significant contribution to the national income in developing countries. SMEs are the major source of employment and reducing the poverty in developing economies. However, SMEs face credit constrain (formal and informal) decreases their productivity performance. This research area is specifically focused on the key research questions. What are the barriers of SMEs financing in developing countries? How lack of access to formal credit affects their performance? What are the policy solutions to improve their financing?

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