Examining Impact of Bank Loans on Small and Medium Enterprises (Case of Saman Bank)

By reviewing prosperous countries, the spinal cord of economic development comes from supporting the small and medium enterprises (SMEs). Iran as one of the countries that have remarkable petroleum incomes has a great potential to allocate funds into producer parts of economics such as SMEs. On the other side, financing SMEs because of their nature and features is harder than large enterprises. In comparison with large companies, SMEs need less capital to start the lifecycle and have a high effectiveness on the economic growth but the way that these enterprises finance is a big issue. In each country based on their definition of SME, there may be the various potential of SME financing mechanisms. In the case of Iran, Bank loans are major way that SMEs can access to finance but according to Global Competitiveness Report, Accessing to Finance is the most problematic factors for doing business in Iran. This paper outlines the overall methods of financing and the major obstacles for financing SMEs in Iran and the impact of bank loans on SMEs.

کلیدواژه ها:

Small and medium enterprises ، SME financing ، Bank loan