Edinburgh Research Explorer

Supporting and developing SMEs

Project: Other ProjectUniversity Awarded Project Funding


The objective of the project is primarily two-fold:
• to influence regulators and policy makers in terms of lending to Small and Medium-sized Enterprises (SMEs) and access to credit, and on the appropriate governance of credit;
• to provide guidance and assistance to SMEs to support SME capability and performance with guidance on credit sources and management, as well as governance.

The applicants have a long-standing track record of research in the financial services sector. Previous research has focused on enabling banks and other financial institutions to understand and tackle the issues associated with estimation of default among SMEs, feeding into better lending decisions. Current work in this area is focusing on the SME firm, primarily on capability/performance and governance, leading to a better understanding of credit management among SMEs. To drive impact in SME lending and contribute towards enhanced performance of SMEs and the economy at large requires an understanding of financial institutions’ lending decisions/practices and SME behaviours. Understanding of this and deriving impact from these insights is particularly important in the wake of the credit crisis and continued economic slowdown. Hence, the primary objective is to build networks with the two groups that we wish to influence – regulators/policy makers and SMEs – using insights from our research to support better lending practice and enhanced SME performance.