• Mohammed Ather Mehmood Shoeb

Small and Medium Enterprises (SMEs) have remained concerned about a lack of external finance being a constraint to their growth, which aid significantly in employment, innovation, and diversification. Additionally, banks and financial institutions have remained adamant in stating that a high level of credit risk is prevalent in providing credit to SMEs, especially when operating in an environment with a high degree of information asymmetry, lack of collateral, and cash-flow instability. The literature review focuses on theoretical and empirical research work on relationships among financing constraint, growth of small businesses, and credit risk. The subsequent section sheds light on how inefficient capital markets, agency theory, and government responses to credit risk influence credit access for small businesses. The subsequent section throws light on literature reviews of approaches to estimate financing constraint, credit risk studies, cash-flow sensitivities, credit rationing surveys, predictions using statistical models in forecasting credit ratings, and credit validity verifications. The literature review section throws light on information from both developed and developing countries on parameters affecting credit access to small enterprises. Additionally, it delves into credit risk models, especially emerging models including "soft" information, "fintech," and alternative databases. The literature on credit risk concludes with research opportunities, especially from studies on support programs during times of crisis and emerging dangers from climate transition adjustments in credit access to small businesses.

small and medium-sized enterprises, financing constraints, credit risk, growth of SMEs, credit scoring, relationship lending

"Financing Constraints, SME Growth and Credit Risk: An Integrated Literature Analysis", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 12, page no.d179-d188, December-2025, Available :http://www.jetir.org/papers/JETIR2512323.pdf

"Financing Constraints, SME Growth and Credit Risk: An Integrated Literature Analysis", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 12, page no. ppd179-d188, December-2025, Available at : http://www.jetir.org/papers/JETIR2512323.pdf