Role of Credit Guarantee System in Development of Small and Medium-sized Enterprises

Abstract

Small and medium-sized enterprises (SMEs) account for a large proportion and play an important role in the generation of jobs and the development of each country. Yet, they also face many difficulties and challenges, especially the difficulty in accessing capital. To help SMEs overcome this problem, many countries in the world use credit guarantees as an effective tool to support them with an easier access to capital and promote their development. Therefore, being aware of this, the paper focuses on analysing the role of the credit guarantee system in assisting SMEs to overcome barriers to financial access, and, thereby, promoting their and the economy’s development.