The Impact of the Financial and Especially Banking For SMEs Businesses on Economic Development

This article attempts to summarize the successful experience of international banking mechanism of small and medium businesses. According to role of SMEs in the economy, remove the existing bottlenecks in the financing of these businesses is essential and as a prerequisite is for the effectiveness of their activities in the development of economy. Today, development of small and medium-sized businesses is as the key to economic development, these businesses effect on the national economy and consequently the global economy by through entrepreneurship, innovation and technological development, industry dynamics up, creation of employment and income growth. However, small and medium businesses, faced in the main challenges and difficulties financing. According to bank-BASED IN financing of the production system in Iran, Banking development, especially small and medium businesses can play an effective role in financing businesses with accurately identify the needs of this sector and provide a range of services. While commercial banks, providing banking services are called risky and challenging to small and medium businesses. Thus, especially banking realization for SMEs, requires the roots of the problems and provides the necessary administrative infrastructure.