GoVERnMEnTS hAVE IMPLEMEnTED A RAnGE oF PoLICIES To SuPPoRT SMES Because of the important role that SMEs play in sustaining employment and generating GDP, governments around the world have paid substantial attention to developing policies designed to support them. The main focus of government intervention has been towards the provision of stimulus packages to strengthen cash flow, to sustain SME investment, and to facilitate their access to credit. Even so, SMEs continue to face difficulties resulting from reduced bank lending due to stricter regulation in many countries and macro-regions, particularly in the EU and US. In addition, many SMEs are reluctant to expand credit lines and hire staff, owing to persistent weak demand. Calls for further government intervention are thus likely to remain high.
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