• Abstract

    Accessing financing sources is crucial for the survival of SMEs. While ample studies have been conducted on enterprise equity financing, the research focus on the small and medium enterprises (SMEs) segment remains limited. Due to the unique characteristics of SMEs, such as small scale, irregular operations, and poor risk resistance, equity financing is a challenging task for them. This study aims to explore what factors influence SMEs financing. To achieve this, we employ the systematic review method:PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-analyses) and content analysis, utilizing databases of Web of Science and Scopus. In the research, eight research dimensions of SMEs equity financing are pooled from 114 related papers. In this study, we identified key research dimensions and factors in SMEs equity financing, providing a framework for future studies on corporate equity funding. These dimensions include financial performance, external environment, innovation, human factors, corporate heterogeneity, information disclosure, strategy, and sustainability. By conducting a thorough analysis of influencing factors, we propose future research agendas and offer future research questions addressing emerging trends in SME financing studies, including social media in reducing information asymmetry and the potential use of AI in assisting investment decisions for SMEs financing. These insights provide valuable guidance for SMEs accessing funding, investors' decision-making, and policymakers shaping supportive environments for SMEs.

  • References

    1. Abbasi, W. A., Wang, Z., & Abbasi, D. A. (2017). Potential sources of financing for small and medium enterprises (SMEs) and role of government in supporting SMEs. Journal of Small Business and Entrepreneurship Development, 5(2), 39-47. https://doi.org/https://doi.org/10.15640/jsbed.v5n2a4
    2. Akhtar, F., & Das, N. (2020). Investor personality and investment performance: from the perspective of psychological traits. Qualitative Research in financial markets, 12(3), 333-352. https://doi.org/https://doi.org/10.1108/QRFM-11-2018-0116
    3. Ali Qalati, S., Li, W., Ahmed, N., Ali Mirani, M., & Khan, A. (2020). Examining the factors affecting SME performance: the mediating role of social media adoption. Sustainability, 13(1), 75. https://doi.org/https://doi.org/10.3390/su13010075
    4. Amadasun, E. O. D., & Mutezo, A. T. (2023). Factors of market-driven strategies and access to finance effect on SMEs competitive performance in Lesotho. The Southern African Journal of Entrepreneurship and Small Business Management, 15(1), 663. https://hdl.handle.net/10520/ejc-sajesbm_v15_n1_a663. Accessed on September 15, 2024
    5. Bańkowska, K., Ferrando, A., & García, J. (2020). Access to finance for small and medium-sized enterprises since the financial crisis: Evidence from survey data. ECB Economic Bulletin, 104-125. https://www.ecb.europa.eu/press/economic-bulletin/articles/2020/html/ecb.ebart202004_02~80dcc6a564.en.html. Accessed on September 15, 2024
    6. Berger, A. N., & Udell, G. F. (2006). A more complete conceptual framework for SME finance. Journal of Banking & Finance, 30(11), 2945-2966. https://doi.org/https://doi.org/10.1016/j.jbankfin.2006.05.008
    7. Bloomfield, R. (2010). Traditional versus behavioral finance. In J. R. N. H. Kent Baker (Ed.), Behavioral finance: Investors, corporations, and markets (pp. 23-38). John Wiley & Sons.
    8. Borgers, A., Derwall, J., Koedijk, K., & Ter Horst, J. (2015). Do social factors influence investment behavior and performance? Evidence from mutual fund holdings. Journal of Banking & Finance, 60, 112-126. https://doi.org/https://doi.org/10.1016/j.jbankfin.2015.07.001
    9. Brogan, A. (2014). Innovative financing solutions for oil & gas companies World Petroleum Congress, Moscow, Russia. https://onepetro.org/WPCONGRESS/proceedings-abstract/WPC21/2-WPC21/166881. Accessed on September 12, 2024.
    10. Bueno, L. A., Román, C. P., & Portillo, A. F. (2019). Private equity focused on family firms & small and medium sized companies: review and science mapping analysis of the recent scientific field. European Journal of Family Business, 9(2), 146-158. https://doi.org/https://doi.org/10.24310/ejfbejfb.v9i2.5285
    11. Cao, C., Hou, W., Liu, X., & Pan, H. (2023). Do excess funds make financially constrained firms better off? Evidence from IPOs in China. Abacus, 59(3), 818-846. https://doi.org/https://doi.org/10.1111/abac.12236
    12. Chalençon, L., & Marion, A. (2024). Size and financing of external growth strategies among small and medium enterprises. European Management Review. https://onlinelibrary.wiley.com/doi/full/10.1111/emre.12666. Accessed on September 15, 2024
    13. Chen, D., Ding, S., & Wu, Z. (2014). Effect of foreign ownership on cost of borrowing: Evidence from small and medium-sized enterprises in China. International Small Business Journal: Researching Entrepreneurship, 32(6), 693-715. https://doi.org/10.1177/0266242613481991
    14. Chen, P., Rao, M., Raza, S. A., Zhan, X., & Zhao, X. (2024). The impact of sudden public events and fiscal policy relief on the financing constraints of small and medium enterprises: a quasi-natural experiment during COVID-19. Venture Capital, 26(1), 31-46. https://doi.org/https://doi.org/10.1080/13691066.2023.2178348
    15. Chen, Q. (2024). From concept to capital: Investigating the influence of green innovation on equity financing in BRICS economies. International Review of Financial Analysis, 93(3), 103233. https://doi.org/https://doi.org/10.1016/j.irfa.2024.103233
    16. Chiappini, R., Montmartin, B., Pommet, S., & Demaria, S. (2022). Can direct innovation subsidies relax SMEs’ financial constraints? Research Policy, 51(5), 104493. https://doi.org/10.1016/j.respol.2022.104493
    17. Choo, M.-R., Wang, C.-W., Yin, C., & Li, J.-L. (2020). Managerial Ability and External Financing. Asia-Pacific Financial Markets, 28(2), 207-241. https://doi.org/10.1007/s10690-020-09313-5
    18. Ciuchta, M. P., Letwin, C., Stevenson, R., McMahon, S., & Huvaj, M. N. (2018). Betting on the coachable entrepreneur: Signaling and social exchange in entrepreneurial pitches. Entrepreneurship Theory and Practice, 42(6), 860-885. https://doi.org/https://doi.org/10.1177/104225871772552
    19. Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of management, 37(1), 39-67. https://doi.org/https://doi.org/10.1177/0149206310388419
    20. Corsi, C., & Prencipe, A. (2017). Improving the external financing in independent high-tech SMEs: Does the foreign ownership matter? Journal of Small Business and Enterprise Development, 24(4), 689-715. https://doi.org/https://doi.org/10.1108/JSBED-12-2016-0213
    21. Czarnitzki, D., & Delanote, J. (2015). R&D policies for young SMEs: input and output effects. Small Business Economics, 45, 465-485. https://doi.org/https://doi.org/10.1007/s11187-015-9661-1
    22. Demeré, P. (2023). Is tax return information useful to equity investors? Review of Accounting Studies, 28(3), 1413-1465. https://doi.org/10.1007/s11142-023-09792-7
    23. Ding, X., Ye, L., Yang, Y., Efimova, O., Steblyanskaya, A., & Zhang, J. (2022). The impact mechanism of environmental information disclosure on corporate sustainability performance—micro-evidence from China. Sustainability, 14(19), 12366. https://doi.org/https://doi.org/10.3390/su141912366
    24. Dirse, M. T., & Japee, G. P. (2024). The effect of capital structure on the financial sustainability of microfinance institutions: A meta‐analysis. Review of Development Economics, 28(3), 958-983. https://doi.org/https://doi.org/10.1111/rode.13088
    25. Dowling, M., O’Gorman, C., Puncheva, P., & Vanwalleghem, D. (2019). Trust and SME attitudes towards equity financing across Europe. Journal of World Business, 54(6), 101003. https://doi.org/https://doi.org/10.1016/j.jwb.2019.101003
    26. Drover, W., Busenitz, L., Matusik, S., Townsend, D., Anglin, A., & Dushnitsky, G. (2017). A review and road map of entrepreneurial equity financing research: Venture capital, corporate venture capital, angel investment, crowdfunding, and accelerators. Journal of management, 43(6), 1820-1853. https://doi.org/https://doi.org/10.1177/01492063176905
    27. Eldridge, D., Nisar, T. M., & Torchia, M. (2019). What impact does equity crowdfunding have on SME innovation and growth? An empirical study. Small Business Economics, 56(1), 105-120. https://doi.org/10.1007/s11187-019-00210-4
    28. Figini, S., Giudici, P., & Uberti, P. (2010). A threshold based approach to merge data in financial risk management. Journal of Applied Statistics, 37(11), 1815-1824. https://doi.org/https://doi.org/10.1080/02664760903164921
    29. Firmasari, P., Setiawati, R., & Fitriati, F. (2021). Company Value Analysis Based on Intellectual Capital Mediated By Financial Performance Study on Lq 45 Companies in Indonesia Stock Exchange 2015-2019 Period. Journal of business studies and management review, 5(1), 70-73. https://doi.org/https://doi.org/10.1080/02664760903164921
    30. Gatauwa, J. M. (2022). Private equity financing and financial performance: A critical review of the literature. http://erepository.uonbi.ac.ke/handle/11295/160214 Accessed On September 12,2024
    31. Ghalke, A., Kumar, S., & Rao, S. V. D. N. (2022). SME financing through public equity: review of the Indian SME exchanges. Indian Growth and Development Review, 15(1), 85-97. https://doi.org/10.1108/igdr-10-2021-0138
    32. Ghardallou, W. (2022). Capital structure decisions and corporate performance: does firm’s profitability matter? Journal of Scientific & Industrial Research, 81(08), 859-865. https://doi.org/https://doi.org/10.56042/jsir.v81i08.59697
    33. Glasserman, P., & Mamaysky, H. (2023). Investor information choice with macro and micro information. The Review of Asset Pricing Studies, 13(1), 1-52. https://doi.org/https://doi.org/10.1093/rapstu/raac009
    34. Grežo, M., & Hanák, R. (2024). Entrepreneurial experience and venture success: A comprehensive meta-analysis of performance determinants. Journal of Entrepreneurship, Management and Innovation, 20(1), 5-29. https://doi.org/https://doi.org/10.7341/20242011
    35. Harris, J. D., Quatman, C. E., Manring, M. M., Siston, R. A., & Flanigan, D. C. (2014). How to write a systematic review. The American journal of sports medicine, 42(11), 2761-2768. https://doi.org/https://doi.org/10.1177/0363546513497
    36. Harwood, A., & Konidaris, T. (2015). SME exchanges in emerging market economies: A stocktaking of development practices. World Bank Policy Research Working Paper(7160). https://ssrn.com/abstract=2548857 Accessed on September 12,2024.
    37. Hope, O.-K., & Vyas, D. (2017). Private company finance and financial reporting. Accounting and Business Research, 47(5), 506-537. https://doi.org/10.1080/00014788.2017.1303963
    38. Hu, L., Chen, Y., & Fan, T. (2022). The influence of government subsidies on the efficiency of technological innovation: A panel threshold regression approach. Sustainability, 15(1), 534. https://doi.org/https://doi.org/10.3390/su15010534
    39. Hyun, S., & Lee, H. S. (2022). Positive effects of portfolio financing strategy for startups. Economic Analysis and Policy, 74, 623-633. https://doi.org/https://doi.org/10.1016/j.eap.2022.03.017
    40. Iqbal, M. M. W., Haq, S. G., & Muhammad, L. . (2020). Psychological factors affecting the investment decisions in the promotion of small and medium enterprises (smes) in khyber pakhtunkhwa. International Review of Management and Business Research, 9(2), 255-270. https://doi.org/https://doi.org/10.30543/9-2(2020)-19
    41. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. In Corporate governance (pp. 77-132). Gower.
    42. Jianzhong, Y., & Jundan, P. P. (2015). A Research on the Financing Efficiency of Small and Medium-Sized Enterprises by Fuzzy Evaluation Method.In Proceedings of 8th International Conference on Intelligent Computation Technology and Automation (P.89-93). Nanchang, China. https://doi.org/10.1109/ICICTA.2015.31
    43. Jie, M. (2019). Financing Difficulties of Small and Medium-sized Enterprises: Analysis Based on Game Theory Model. In Proceedings of 2019 4th International Conference on Social Sciences and Economic Development (p.297-300). Wuhan,China. https://doi.org/10.2991/icssed-19.2019.54
    44. Ketkaew, C., Manglakakeeree, O., & Naruetharadhol, P. (2020). The interrelationships of work-related factors, person-environment fit, and employee turnover intention. Cogent Business & Management, 7(1), 1823580. https://doi.org/https://doi.org/10.1080/23311975.2020.1823580
    45. Kim, E. H., Li, Y., Lu, Y., & Shi, X. (2024). External financing, technological changes, and employees. Review of Finance, 28(3), 985-1025. https://doi.org/https://doi.org/10.1093/rof/rfad040
    46. Kim, H. S., & Cho, K.-S. (2020). Financing resources of SMEs and firm performance: Evidence from Korea. Asian Journal of Business and Accounting, 13(2), 1-26. https://doi.org/https://doi.org/10.22452/ajba.vol13no2.1
    47. Kraus, S., Mitter, C., Eggers, F., & Stieg, P. (2016). Drivers of internationalization success: a conjoint choice experiment on German SME managers. Review of Managerial Science, 11(3), 691-716. https://doi.org/10.1007/s11846-016-0201-4
    48. Krippendorff, K. (2018). Conceptual Foundation. In Content analysis: An introduction to its methodology (pp. 24-50). Sage publications.
    49. Kukk, M.-L. (2022). The debt-equity choice in crowdfunding: a two-method approach. Venture Capital, 24(3-4), 287-308. https://doi.org/https://doi.org/10.1080/13691066.2022.2128932
    50. Kuma, F. K., & Yosuff, M. E. (2020). The dynamics of Pecking Order and Agency theories on crowdfunding concept as alternate finance for start-up businesses. International Journal of Technology and Management Research, 5(1), 1-13. https://doi.org/https://doi.org/10.47127/ijtmr.v5i1.82
    51. Lee, D. H., & Yoon, J.-C. (2022). Equilibrium Decisions on Pricing and the Greenness Degree in Supply Chains under Single‐and Cross‐Distribution Channels of Green and Nongreen Products and Government Subsidies. Mathematical Problems in Engineering, 2022(1), 5525780. https://doi.org/https://doi.org/10.1155/2022/5525780
    52. Li, J.-j., Wang, F.-s., & Ye, Y.-q. (2014). Influence of private equity on small and medium-sized enterprises corporate governance. In Proceedings of 2014 International Conference on Management Science & Engineering 21th Annual Conference (p.1113-1120). Helsinki, Finland. https://doi.org/10.1109/ICMSE.2014.6930353
    53. Lingnau, V., Fuchs, F., & Beham, F. (2022). The link between corporate sustainability and willingness to invest: new evidence from the field of ethical investments. Journal of Management Control, 33(3), 335-369. https://doi.org/https://doi.org/10.1007/s00187-022-00340-z
    54. Liu, M., & Song, H. (2019). Analyze Impact of Private Equity Investment on the Growth of Small and Medium-sized Enterprises by big data technology . In proceedings of 4th International Conference on Mechanical, Control and Computer Engineering (P.787-7875). Hohhot, China. https://doi.org/10.1109/ICMCCE48743.2019.00181
    55. Lui, A. K. H., Ngai, E. W. T., & Lo, C. K. Y. (2016). Disruptive information technology innovations and the cost of equity capital: The moderating effect of CEO incentives and institutional pressures. Information & Management, 53(3), 345-354. https://doi.org/10.1016/j.im.2015.09.009
    56. Maesaroh, I. (2018). The Effects Of Ownership Structures And Specific Characteristics On The Capital Structures Of Idx-Listed Banks. Sains: Journal Manajemen dan Bisnis, 11(1). https://doi.org/http://dx.doi.org/10.35448/jmb.v11i1.4317
    57. Mason, C., & Stark, M. (2004). What do investors look for in a business plan? A comparison of the investment criteria of bankers, venture capitalists and business angels. International small business journal, 22(3), 227-248. https://doi.org/https://doi.org/10.1177/0266242604042377
    58. Matisone, A., & Lace, N. (2019). Entrepreneurs’ and Venture Capitalists’ openness for cooperation: barriers and drivers Proceedings of the 10th International Multi-Conference on Complaxity, Informatics and Cybernetics, Orlando, FL, USA. https://www.iiis.org/CDs2019/CD2019Spring/papers/ZA121SX.pdf .Accessed on September 15,2024
    59. Merugula, S., Dinesh, G., Kathiravan, M., Das, G., Nandankar, P., & Karanam, S. R. (2021). Study of Blockchain Technology in Empowering the SME. In proceedings of 2021 International Conference on Artificial Intelligence and Smart Systems (p.758-765).Coimbatore, India. https://doi.org/10.1109/icais50930.2021.9395831
    60. Milosević, D., Popović, J., Avakumović, J., & Kvrgić, G. (2020). The impact of the equity capital and trade credit financial sources on the company’s performances sustainability. Економика пољопривреде, 67(3), 735-746. https://doi.org/https://doi.org/10.5937/ekoPolj2003735M
    61. Minakh, I., Saraswati, E., & Ghofar, A. (2021). The effect of financial and non-financial performance on investors’ reactions: The role of corporate governance mechanisms as moderating. International Journal of Research in Business and Social Science 10(8), 47-56. https://doi.org/https://doi.org/10.20525/ijrbs.v10i8.1501
    62. Moher, D., Liberati, A., Tetzlaff, J., Altman, D. G., & Group, P. (2010). Preferred reporting items for systematic reviews and meta-analyses: the PRISMA statement. International journal of surgery, 8(5), 336-341. https://doi.org/https://doi.org/10.1016/j.ijsu.2010.02.007
    63. Montchaud, S. (2014). The interest of private equity and venture capital for the financing of entrepreneurship in emerging markets. International Journal of Economics and Business Research, 7(2), 220-240. https://doi.org/https://doi.org/10.1016/j.ijsu.2010.02.007
    64. Mulier, K., & Samarin, I. (2021). Sector heterogeneity and dynamic effects of innovation subsidies: Evidence from Horizon 2020. Research Policy, 50(10), 104346. https://doi.org/10.1016/j.respol.2021.104346
    65. Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of financial economics, 13(2), 187-221.
    66. Njoku, O. E., & Lee, Y. (2024). Revisiting the Effect of Dividend Policy on Firm Performance and Value: Empirical Evidence from the Korean Market. International Journal of Financial Studies, 12(1), 22. https://doi.org/https://doi.org/10.3390/ijfs12010022
    67. OECD. (2024). Financing SMEs and entrepreneurs 2024: An OECD scoreboard. https://www.oecd.org/en/publications/financing-smes-and-entrepreneurs-2024_fa521246-en.html. Accessed on September 15,2024
    68. Petrovskaya, M. V., Zaitseva, N. A., Bondarchuk, N. V., Grigorieva, E. M., & Vasilieva, L. S. (2016). Scientific methodological basis of the risk management implementation for companies’ capital structure optimization. International Electronic Journal of Mathematics Education, 11(7), 2571-2580. https://www.iejme.com/article/scientific-methodological-basis-of-the-risk-management-implementation-for-companies-capital Accessed on September 12,2024
    69. Puspitaningtyas, Z. (2019). Empirical evidence of market reactions based on signaling theory in Indonesia Stock Exchange. Investment Management and Financial Innovations, 16(2), 66-77. https://doi.org/http://dx.doi.org/10.21511/imfi.16(2).2019.06
    70. Rahman, Z., & Shi, W. (2022). How does frugal innovation help young firms in the US? The moderating roles of venture capital investment and debt financing. Journal of General Management.Advance online publication. https://doi.org/https://doi.org/10.1177/03063070221136407 Accessed on September 12,2024
    71. Rialp, A., Rialp, J., & Knight, G. A. (2005). The phenomenon of early internationalizing firms: what do we know after a decade (1993–2003) of scientific inquiry? International business review, 14(2), 147-166. https://doi.org/https://doi.org/10.1016/j.ibusrev.2004.04.006
    72. Rizk, R., & Sassine, M. (2023). Equity financing and SME growth: evidence from the Eurozone. International Journal of Work Innovation, 4(3), 227-239. https://doi.org/https://doi.org/10.1504/IJWI.2023.133303
    73. Rubanov, P. M., Lieonov, S. V., Bilan, Y. V., & Liulov, O. V. (2019). The Fintech sector as a driver of private entrepreneurship development in time of industry 4.0 International Scientific Conference on The Impact of Industry 4.0 on Job Creation, https://essuir.sumdu.edu.ua/handle/123456789/85586 . Accessed on September 15, 2024
    74. Sakala, J. C., & Hapompwe, C. (2023). Analyzing Small and Medium Enterprises’ Perception towards Private Equity as an Alternative Source of Finance in Lusaka District. Journal of economics, finance and management studies, 6(01). https://doi.org/10.47191/jefms/v6-i1-38
    75. Shad, M. K., Lai, F.-W., Shamim, A., & McShane, M. (2020). The efficacy of sustainability reporting towards cost of debt and equity reduction. Environmental Science and Pollution Research, 27(18), 22511-22522. https://doi.org/https://doi.org/10.1007/s11356-020-08398-9
    76. Shanmuganathan, M. (2020). Behavioural finance in an era of artificial intelligence: Longitudinal case study of robo-advisors in investment decisions. Journal of Behavioral and Experimental Finance, 27, 100297. https://doi.org/https://doi.org/10.1016/j.jbef.2020.100297
    77. Song, H., Yu, K., Ganguly, A., & Turson, R. (2016). Supply chain network, information sharing and SME credit quality. Industrial Management & Data Systems, 116(4), 740-758. https://doi.org/10.1108/imds-09-2015-0375
    78. Srivastava, S. P. (2022). Retail Investor Decision Making in SME IPOs in Indian Capital Market: A Qualitative Analysis. Pacific Business Review (International), 14(7), 37-44. http://www.pbr.co.in/2022/2022_month/January/3.pdf. Accessed on September 15, 2024
    79. St-Pierre, J., Sakka, O., & Bahri, M. (2018). External Financing, Export Intensity and Inter-Organizational Collaborations: Evidence from Canadian SMEs. Journal of Small Business Management, 56(Suppl.1), 68-87. https://doi.org/10.1111/jsbm.12390
    80. Stefanelli, V., Ferilli, G. B., & Boscia, V. (2022). Exploring the lending business crowdfunding to support SMEs' financing decisions. Journal of Innovation & Knowledge, 7(4), 100278. https://doi.org/10.1016/j.jik.2022.100278
    81. Stevenson, R., Kier, A. S., & Taylor, S. G. (2021). Do policy makers take grants for granted? The efficacy of public sponsorship for innovative entrepreneurship. Strategic Entrepreneurship Journal, 15(2), 231-253. https://doi.org/https://doi.org/10.1002/sej.1376
    82. Stone, M., Aravopoulou, E., Ekinci, Y., Evans, G., Hobbs, M., Labib, A., Laughlin, P., Machtynger, J., & Machtynger, L. (2020). Artificial intelligence (AI) in strategic marketing decision-making: a research agenda. The Bottom Line, 33(2), 183-200. https://doi.org/https://doi.org/10.1108/BL-03-2020-0022
    83. Ström, V., Sanandaji, N., Esmaeilzadeh, S., & Esmaeilzadeh, M. (2023). Equity capital financing of Swedish SMEs, innovation, and decentralized management. International Journal of Innovation Science, Advanced online publication. https://doi.org/https://doi.org/10.1108/IJIS-10-2022-0200. Accessed on September 15, 2024
    84. Sun, Y., & Xia, J. (2022). Stakeholder interest to mitigate the agency problem in enterprise innovation and the moderating effect of ownership concentration and financial constraints. Creativity and Innovation Management, 31(4), 599-613. https://doi.org/https://doi.org/10.1111/caim.12521
    85. Svetek, M. (2022). Signaling in the context of early-stage equity financing: review and directions. Venture Capital, 24(1), 71-104. https://doi.org/https://doi.org/10.1080/13691066.2022.2063092
    86. Syrová, L., & Špička, J. (2022). The Impact of Foreign Capital on the Level of ERM Implementation in Czech SMEs. Journal of Risk and Financial Management, 15(2), 83. https://doi.org/https://doi.org/10.3390/jrfm15020083
    87. Tykvová, T. (2018). Venture capital and private equity financing: an overview of recent literature and an agenda for future research. Journal of Business Economics, 88(3), 325-362. https://doi.org/https://doi.org/10.1007/s11573-017-0874-4
    88. Vaznyte, E., & Andries, P. (2019). Entrepreneurial orientation and start-ups' external financing. Journal of Business Venturing, 34(3), 439-458. https://doi.org/10.1016/j.jbusvent.2019.01.006
    89. Wan, X., Teng, Z., Zhang, Z., Liu, X., & Du, Z. (2023). Equity financing risk assessment based on PLTS-ER approach in marine ranching from the ecological and circular economy perspectives. Annals of Operations Research, 342(1), 875-920. https://doi.org/DOI10.1007/s10479-023-05222-8
    90. Wang, D., & Sun, Y. (2022). The effect of different government subsidies on total-factor productivity: Evidence from private listed manufacturing enterprises in China. Plos one, 17(1), e0263018. https://doi.org/https://doi.org/10.1371/journal.pone.0263018
    91. Wang, H., Du, D., Tang, X., & Tsui, S. (2023). Green finance pilot reform and corporate green innovation. Frontiers in Environmental Science, 11, 1273564. . https://doi.org/https://doi.org/10.3389/fenvs.2023.1273564
    92. Wang, K., Chen, Y., Liu, Y., & Tang, Y. (2020). Board secretary’s financial experience, overconfidence, and SMEs’ financing preference: Evidence from China’s NEEQ market. Journal of Small Business Management, 61(4), 1378-1410. https://doi.org/10.1080/00472778.2020.1838177
    93. Wei, W. (2013). Independent Innovation and Equity Finance: Empirical Analysis on Small and Medium-Sized Enterprises. In Proceedings of The 19th International Conference on Industrial Engineering and Engineering Management: Management System Innovation (p.413-421), Changsha, China. https://doi.org/10.1007/978-3-642-38427-1_44
    94. Xiang, D., Worthington, A. C., & Higgs, H. (2014). Discouraged finance seekers: An analysis of Australian small and medium-sized enterprises. International Small Business Journal: Researching Entrepreneurship, 33(7), 689-707. https://doi.org/10.1177/0266242613516138
    95. Yazdanfar, D., & Öhman, P. (2016). Capital structure dynamics among SMEs: Swedish empirical evidence. The Journal of Risk Finance, 17(2), 245-260. https://doi.org/10.1108/jrf-04-2015-0040
    96. Yu, L., & Hu, J. (2023). Employee equity incentive, executive psychological capital, and enterprise innovation. Frontiers in Psychology, 14, 1132550. https://doi.org/https://doi.org/10.3389/fpsyg.2023.1132550
    97. Zeng, H., Ren, L., Chen, X., Zhou, Q., Zhang, T., & Cheng, X. (2024). Punishment or deterrence? Environmental justice construction and corporate equity financing––Evidence from environmental courts. Journal of Corporate Finance, 86, 102583. https://doi.org/https://doi.org/10.1016/j.jcorpfin.2024.102583
    98. Zhang, K. Q., Tang, L. Z., & Chen, H. H. (2021). The impacts of environmental performance and development of financing decisions on economic sustainable performance: from the view of renewable and clean energy industry. Clean Technologies and Environmental Policy, 23(6), 1807-1819. https://doi.org/https://doi.org/10.1007/s10098-021-02068-1
    99. Zhang, Y., Wang, D., Yang, M. M., Li, J., & Liu, S. (2023). A bibliometric review of early-stage entrepreneurial equity financing: an overview and future research agenda. Venture Capital, https://www.tandfonline.com/doi/full/10.1080/13691066.2023.2295252.Accessed on August 20, 2024.
    100. Zhou, X., Liu, P., Liu, Y., & Luo, X. (2023). Understanding the effects of the tiered system in the national equities exchange and quotations (NEEQ) on the growth of technology-based smes from the perspective of financing constraints. Transformations in Business & Economics, 22(3A), 809-831. http://www.transformations.knf.vu.lt/56b/article/does.Accessed on September 12, 2024.
    101. Zunckel, S., & Nyide, C. J. (2019). Capital structure of small, medium and micro enterprises: major factors for a developing economy. Problems and Perspectives in Management, 17(2), 124-133. https://doi.org/http://dx.doi.org/10.21511/ppm.17(2).2019.09

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Copyright (c) 2025 The Authors

How to cite

Yuan, L. Y., Alias, N., & Yaacob, M. H. (2025). What factors influence SMEs’ equity financing: A systematic literature review and future agendas. Multidisciplinary Reviews, 8(6), 2025199. https://doi.org/10.31893/multirev.2025199
  • Article viewed - 370
  • PDF downloaded - 425