Moreover, the strict requirement for collateral lending which is more predominant with financial liberalization policies could bring about a conflict between banking prudence and the policy of government to target borrowers who in the first instance cannot afford such securities. The overall impact of globalisation and liberalisation on SMMEs needs to be properly researched and appropriate policies designed to ameliorate any adverse consequences.
By far the most publicized of all the barriers to SMME development is the issue of access to finance. This is not to denigrate other SMME problems such as skills shortages, sometimes unfriendly regulatory and supervisory environment, scarcity of capital goods, poor management, lack of data on the sector, resistance to change and marketing difficulties especially for export-oriented SMMEs.