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Propose four challenges faced by small and medium sized enterprises (SMEs) in raising capital.

      

Propose four challenges faced by small and medium sized enterprises (SMEs) in raising capital.

  

Answers


Francis
Four challenges faced by small and medium sized enterprises (SMEs) in raising capital.
(i) Lack of enough assets to be used as collateral
(ii) They find it expensive to be listed in the stock markets to raise funds.
(iii) Due to their small scale of operations, investors look at such companies as risky, and therefore not willing to provide them with the funds they need.
(iv) Many of the SMEs are informal (they operate in unfamiliar sectors), with less publicly available information.
(v) lack of networks contributed by lack of information, know-how and experience of domestic and international markets.
francis1897 answered the question on November 7, 2022 at 09:20


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