A dissertation submitted in partial fulfillment of the requirements for the degree of bachelors in business management and entrepreneurship BBME Malawi College of Accountancy 2016 DU0012

The aim of this was to determine and review the financing challenges facing small and medium enterprises within the a Lilongwe city and to try and suggest solutions to these factors. Sixty interviews were conducted of business owners. The results obtained identified a number of limiting factors to financing challenges. The author observed that challenges do exist for SMEs in Lilongwe to access finance for their business. The specific challenges faced by most SMEs reviewed in this study, vary depending on a wide range of factors, given choice of industry stage of business development, geographical location and size of business.

The research conclude by making the following main recommendations; firstly vocational training to assist SMEs to constantly adapt to the changing business environment, tailor ,made training in financial and management skills, intervention by government in SMEs reform, lending institutions needs to make accessible for SMEs and there is a need to develop capabilities in areas such as information technology to fully utilize opportunities in a fast growing environment.