THE IMPACT OF SECURITIES-BASED FINANCING ON SMALL AND MEDIUM ENTERPRISES (SMES) DEVELOPMENT

Abstract

This study investigates the influence of securities-based financing on the growth and development of small and medium enterprises (SMEs). Securities-based financing—comprising equity issuance, bonds, and alternative securities such as equity crowdfunding—provides SMEs with non-bank funding sources. The analysis explores how access to capital markets affects SMEs’ performance, sustainability, and innovation capacity. Results reveal that securities financing positively contributes to SME growth, profitability, and market expansion. Policy and practical implications are also discussed.