A conceptual review of the effects of financial access on small business performance through the use of Resources-Based View and Pecking Order Theory

Abstract

The study presents a conceptual review of access to finance on small business performance through the use of Resources Based View (RBV) and Pecking Order theory. The main objective is to review concepts of access to finance and establish the linkage with the performance of SMEs. Specifically, the review of the context of access to finance and the performance of small businesses are underpinned by the RBV and Pecking Order theory to confirm the link. The organization is said to carry its objectives into effect with the aid of resources at its disposal. Thus, it has been established from the literature of all the variables that there is a link between access to finance and the performance of small businesses. It is therefore recommended that businesses and governments pay special attention to accessing finance to perform better and create more employment, contribute to Gross Domestic Product (GDP), and reduce poverty.