Cross-country studies conducted so far demonstrate that SMEs undeniably face large financing constrictions that obstruct the survival and growth of such firms. In this context, one of the most notable revelations is that asymmetric information stuck between the lender and the borrower of SMEs might impede financial institutions keenness to offer finance. This eventually would slow down the SMEs performance in terms of various growth indicators. In this context, Coluzzi, Ferrando and Martinez-Carrasca (2008) cited in Balling et al (2009), study the financing obstructions of five euro area countries (Germany, Spain, France, Italy and Portugal) making use of survey data gathered from SMEs made available by the World Bank. The findings of their study reveal that growing SMEs clearly grow up quicker than grown-up SMEs, however when it comes to financing challenge or accessibility of financing, the growing up SMEs have comparatively more financing constraints than the grown up. More specifically, as they reveal SMES the manufacturing and construction sectors are more probable to be hampered by non or restricted accessibility of which might be due to the far above the ground capital requirement for operation in these sectors.
On the other end, Huyghebaert (2008) have studied the facet of the result of financing control on SMEs conduct , and based on the findings of their study they contend that high control forms spurs for SMEs to take full advantage of immediate income for reducing the risk of unhelpful financing decisions by financing organizations and a likely resultant liquidation of the SMEs, seeing as their survival and growth is a decisive for those usually holding a mainly investment portfolio in undiversified form and benefit from large private benefits from control.