Wu, StevenLi, JingShafiuzzaman, Mohammad2025-01-152025-01-152023http://hdl.handle.net/10454/20208This thesis examines three issues about European SMEs. Chapter Two examines how sustainable growth firms obtain external finance during and after the 2008 financial crisis. Although sustainable growth firms have past growth records and future growth aspirations; however, those firms may face challenges in obtaining external finance. We find that those firms increase their demand for external finance after the financial crisis and obtain finance from suppliers during this period to implement their growth activities. In contrast, firms are less likely to secure loans from banks during this period. Chapter Three examines how SMEs can reduce information asymmetry and increase the probability of obtaining a bank loan. SMEs can easily establish a lending relationship with suppliers, which may improve firms’ creditworthiness and reduce information asymmetry. We show that SMEs that suffer information asymmetry can obtain bank finance if these firms establish a significant relationship in the past with suppliers. This finding is more prominent for small firms as banks refuse their loan applications due to information asymmetry. Chapter Four examines financially constrained SMEs for increasing sales growth through innovation activities. As innovation has a positive effect on sales growth; therefore, conducting innovation activities can improve cash flows to constrained firms. We find that financially constrained SMEs can obtain sales growth if they conduct innovation activities. Our results suggest that product and process innovation are significant for financially constrained SMEs as those innovations provide additional cash flow in firms to reduce the adverse effect of the constrained condition.en<a rel="license" href="http://creativecommons.org/licenses/by-nc-nd/3.0/"><img alt="Creative Commons License" style="border-width:0" src="http://i.creativecommons.org/l/by-nc-nd/3.0/88x31.png" /></a><br />The University of Bradford theses are licenced under a <a rel="license" href="http://creativecommons.org/licenses/by-nc-nd/3.0/">Creative Commons Licence</a>.Firm growthInnovationAccess to financeInformation asymmetryFinancial constraintsSmall and medium-sized enterprises (SMEs)EuropeEuropean SMEsdoctoral