University of Isfahan Journal of Asset Management and Financing 2383-1189 5 2 2017 06 22 Simulating and policy making of internal and external SMEs' financing problems via system dynamics approach Simulating and policy making of internal and external SMEs' financing problems via system dynamics approach 69 92 21172 10.22108/amf.2017.21172 FA Alinaghi Mosleh Shirazi Associate Prof. of Management Department, School of Economics, Management & Social Sciences, Shiraz University, Shiraz, Iran Mojtaba Khalifeh Ph.D. Student in Systems Management, Management Department, School of Economics, Management & Social Sciences, Shiraz University, Shiraz, Iran Journal Article 2015 05 12 Financing is the main problem of small and medium sized enterprises (SMEs) and of course their main financing source is bank facilities in our economy. Thus, the purpose of this study is to consider the dynamic interactions of effective variables and also internal and external problems in financing via heuristic approach and by using system dynamics method. Research systemic model and causal variables – with regards to the literature review and Khodabakhshian et al (2013) study- are developed, modeled, simulated and analyzed by this approach and applying Vensim DSS software. The overall results of this study shows, increasing ease of access to loans and business plan quality can increase privatization rate, banks financial resources and lending to SMEs and decrease corruption. It also shows, increasing the revenue and SMEs' cash flows will follow increasing loan repayment probability and decreasing bad debts. Financing is the main problem of small and medium sized enterprises (SMEs) and of course their main financing source is bank facilities in our economy. Thus, the purpose of this study is to consider the dynamic interactions of effective variables and also internal and external problems in financing via heuristic approach and by using system dynamics method. Research systemic model and causal variables – with regards to the literature review and Khodabakhshian et al (2013) study- are developed, modeled, simulated and analyzed by this approach and applying Vensim DSS software. The overall results of this study shows, increasing ease of access to loans and business plan quality can increase privatization rate, banks financial resources and lending to SMEs and decrease corruption. It also shows, increasing the revenue and SMEs' cash flows will follow increasing loan repayment probability and decreasing bad debts. https://amf.ui.ac.ir/article_21172_789e4d28531c9a4cc2713c09cb4ab841.pdf