Influence of access to finance on the competitive growth of SMEs in Lesotho

Abstract Background Access to finance has been identified as one of the biggest problems faced by small and medium-sized enterprises (SMEs) in most developing economies. Similarly, access a dominant constraint facing SME sector Lesotho. This paper established factors related that influence competitive growth The were include financial information access, bank business support services, structure banks, collateral requirements sector. Findings results from our analysis indicated relationship exists between independent variables requirement commercial banks. As such these are associated with SMEs’ capacity attain Explicitly, Basotho entrepreneurs managers see predictors (collateral requirement, services) critical constrain accessing necessary credit which ultimately Conclusions study concludes significantly affects SMEs Thus, this suggests several specific harmonized policy actions needed Lesotho market establish an enabling will ease enterprises’ adequate funding programs. These programs should target improved schemes coordinated, competitive, directed towards finance, enables guarantees win–win for loan applicants operators.