Notwithstanding the important role of SMEs to economic growth and job creation, they are confronted by a number of challenges that tend to limit their growth and development. The most significant institutional weakness facing dynamic SMEs is their lack of access to external finance. Repressive financial policies in the past, especially low interest, and a monopolistic banking system minimized the interest of banks in developing the SME market. To reverse the consequences of these practices, a combination of financial liberalization and institutional reform was in order (Aryeetey et al., 1994).