Government finance, loans, and guarantees for small and medium enterprises (SMEs) (2000–2021): A systematic review

Governments across jurisdictional boundaries leverage financial incentives as a policy strategy to support and develop the business of small and medium enterprises (SMEs). This study is a systematic rety view of the literature on direct governmental finance to SMEs through loans, guarantees, and credit lines between 2000–2021. Among the 89 studies identified for inclusion, four themes emerged: provision of government loans, other government finance provision, external reasons for government finance provision, and the purpose and outcomes of government financing. The key managerial and finance findings in this study are that a greater awareness among SMEs is needed for accessing existing financial incentives from the government. Likewise, regarding government policy, this study highlights a need to clarify the purpose of loan provision to SMEs. Finally, despite calls by researchers for more qualitative assessments of SMEs and targeted government loan provision, there remains a lack of evidence to characterize this interelationship in practice.