The challenges of commercial banks for financing project: In case of small-medium enterprises

Adilov Mirkomil Miralimovich *

Deputy Director of Graduate School of Business and Entrepreneurship under the Cabinet of Ministers of the Republic of Uzbekistan.
 
Research Article
World Journal of Advanced Research and Reviews, 2024, 23(02), 1449–1455
Article DOI: 10.30574/wjarr.2024.23.2.2473
 
Publication history: 
Received on 07 July 2024; revised on 15 August 2024; accepted on 17 August 2024
 
Abstract: 
Small-medium enterprises (SMEs) are crucial for creating job opportunities, generating profit, and supporting social stability in low-income nations, contributing dynamically to private sector development. However, accessing financial resources remains a significant challenge for SME development, primarily due to inadequate financing from commercial banks. This often leaves new startups struggling to obtain credit due to a lack of credit history, marking them as high-risk prospects. Commercial banks face numerous challenges in lending to SMEs, including risk identification, managing operational costs, lending decision quality, and controlling bad loans. This research paper explores the role of commercial bank loans in the economy and examines the specific challenges that Uzbekistan's commercial banks encounter when financing SMEs.
 
Keywords: 
Commercial Bank; Credit; Challenges; Lending Manager; Risks; Small-Medium Enterprises; Economic Growth; Financing Projects.
 
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