Entrepreneurial financing of small and medium enterprises

This study examined forms of entrepreneurial financing (EF) and factors influencing financing of Small and Medium Enterprises (SMEs) in emerging economies. Based on the systematic literature review (SLR) (analyzing 127 articles published in 57 Internationally ranked Journals), an agenda for future research is developed and implications for EF were highlighted. The SLR findings point to the external environmental factors influencing access to finance including institutions (especially, legal and regulatory environment) and competition between formal and informal sectors. While internal factors affecting access to finance include corporate governance, entrepreneurial orientation (EO), firm size, level of education, skills, and experience of managers. The review identifies a need to examine (i) “new” sources of EF and how firms are re-strategizing to take advantage of the alternative financing, (ii) how environmental, social and governance (ESG) influence financing investment and decisions.